§ 7503 Impound Account Interest Rules

• •Banks or lenders don’t have to pay you extra money (interest) on the funds they hold for things like property taxes or insurance, unless your loan agreement says so.
• •If your loan contract says the money should be in a savings account that earns interest, then they must do that.
• •If there’s no mention of interest in your contract, don’t expect to earn any on that held money.

You take out a mortgage, and every month, part of your payment goes into a special account to pay your property taxes later.

The bank doesn’t have to give you extra money for holding your tax payments unless your mortgage contract says they will. If your contract says the money should be in a savings account that earns interest, then they must put it there.