We want to figure out the best place to park our money in the next 1-5 years to save for a bigger place.
Our escrow account that is linked to our mortgage is a checking account that has a 1% interest yield. I’m thinking this is the best option because we will have easy access to it (no fees for withdrawing unlike some savings accounts), with a yield similar to savings accounts.
The only potential drawback is that, as I understand it, the account isn’t technically ours—but I can’t see how the bank could take any of the excess money as long as we are paying on time. Are there any other drawbacks?
EDIT: Yes, it's in the US. And we have had excess in escrow before, but not much. Not sure if it was at the end of the year, but considering we're coming up on our closing date (in March) we'll watch to see what they do with that excess.