Escrow Account

A type of trust account, known as an “Anderkonto” in German. This type of account is based on an escrow arrangement.

An escrow account is a type of limited-access account held by a lawyer, notary or trustee on behalf of one or more third-parties who own the assets held in the account.

In the event that an escrow account holder declares bankruptcy, the assets held in the escrow accounts they manage remain in the possession of their owners.

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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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