What is another name for an impound account?

An impound account is commonly referred to as an escrow account. This is because both types of accounts are utilized to hold funds for specific purposes, typically in the context of real estate transactions. An impound account is established by a lender to collect and hold money from the borrower for future obligations such as property taxes and insurance premiums. By using terms like "escrow," it underscores the role of the account in safeguarding funds until they are needed, ensuring that these important expenses are covered on behalf of the borrower.

In contrast, a tax account may imply a broader range of tax-related funds and does not specifically relate to the gathering of funds for property taxes or insurance, which is the primary function of an impound account. An insurance account similarly refers to funds designated for insurance premiums but does not encapsulate the full scope of an impound account's purpose. Therefore, the designation of "escrow account" is the most accurate alternative name for an impound account as it reflects the account's function and intent within real estate financing.