Our Tax Account is not a true "escrow" account in that we do not require tax escrows on our "in house" mortgages. However, for those who wish to save on their own for taxes and/or insurance, we offer an account designated S-40.
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Question: Is this account a true escrow account?
Answer: No. This account is not an "escrow" account. It is merely a sub-savings account which you can use to keep your funds separate from regular shares.
Question: Does the tax account earn dividends?
Answer: Yes, it earns the same dividends as regular shares.
Question: If this is not a true escrow account, can I have access to my funds in this account at any time?
Answer: Yes. There is no restriction of access to the funds you may have in a tax account.
Question: If I do use the account to save for taxes, does the Credit Union pay my tax bill at year end?
Answer: No. The Credit Union does not automatically pay tax bills at any time. It is the responsibility of the account holder to withdraw funds and pay their taxes and/ or insurance. We also require proof of payment of taxes and insurance for all mortgages we hold "in-house".