Interest bearing escrow

by a searcher from University of California, Berkeley - Haas School of Business

5 months ago

Is anyone aware of/have experience with an escrow service that provides any sort of yield? For a sizeable escrow ($1M+) it would be great to be able to store that in something safe/liquid like a Savings/MM/CD with a target return of 4-5% (currently). If there were claims against that escrow, the interest yielded could help offset. Would be curious who'd pay taxes on that income too?

0 likes
58 views
4 comments

professional from University of Minnesota - Twin Cities Campus

There's a bank up here in Minnesota that does escrow accounts - For a $1,500 fee, they they have rates of 3.04% APY for amounts over $250k last I inquired. If you're doing $1m, they might do better rates. Ping me if you want an intro.

5 months ago | like reply | 0 likes

searcher from Babson College - F.W. Olin Graduate School

The three banks we looked at provided an interest bearing solution. JPM was the only national bank of the three.

5 months ago | like reply | 1 like

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Sorry, but you are a broker's worst nightmare ... and how to fix it

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.