FAQ: Do Escrow Accounts Earn Interest in the UK?

Interest is not usually paid on escrow accounts operated by independent escrow agents because the compliance overheads and ongoing costs are generally very high and many safeguarding/segregated account facilities come at a high cost. Most escrow agents (including us) will, instead, apply any interest towards the fee for the service in order to keep the fees down - in this way, the third-party bank contributes to the fees, rather than one of the parties.