Should we park our money in our escrow account?
The likely outcome of adding extra money to your escrow account is that the bank will send you a check for excess funds at the end of the year (or whenever your property tax and insurance payments are processed). Could you just redeposit that money immediately? Possibly. I bet most banks wouldn't care and would just follow the routine of clearing the excess from the account next time they process payments. I've never received a 1099 for interest in an escrow account. It is possible that when you start earning enough interest that a 1099 is required by law ($10/year) that the bank gets a little more aggressive about pushing your money back to you. I'm not sure why that hassle is any better than just opening up your average internet savings account (many don't have any of the fees you mentioned) and parking it there with a similar interest rate. You can deposit and withdraw using ACH transactions that post by the next business day. That said, unless they do start rejecting your money, there aren't a lot of downsides in your plan. You should talk to a financial fiduciary (make sure they are a fiduciary, not all planners are) about investing your money.  Even ultra safe investments such as treasury bonds will beat the 1% interest rate offered by your savings account (the yield on the 5 year treasury is currently around 2%).
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For More Details About Landscape Designing Visit At Our Office Or Call us +91 9820 050 673 / 022-289-211-24 "I agree with all that was said here, but I have to add something. Another point I will add is ""stimulus: while you still can."" At some point you can no longer take on more debt even if you wanted to. If global and domestic investors think you are going to be a risky investment then they cut you off. The people who argue that Greece shouldn't be implementing austerity don't seem to understand the situation they are in. Far fewer wanted to lend money to them even before they started their ""haircut"" shanigans. People think the government should spend more, but how are they supposed to do that if no one wants to lend more money? They also criticize Germany and co. for insisting on austerity. What they sometimes seem to forget is that Germany doesn't have an infinite supply of money to bail out Greece. They have their own bills to pay and any politician who was dumping ever larger amounts of money into Greece would be looking at being voted out or even assassinated if they let things get too bad for the German people (I am being a little hyperbole here to make a point, but I honestly feel it is a very real possibility in this kind of economic climate). At this point there is no reason to discuss whether Greece should choose to spend more money, because that choice is no longer even available to them.  We are not as bad off as Greece right now. We should spend more money but we need results. We need to identify the structural problems ailing our economy and get them fixed with the money we have. Direct spending isn't always a great idea if it is done in a nonsensical way. People defending the bike paths and other shit argue that all spending is good in a depression. I am not against bike paths and roads, because they can certainly create jobs and generate value to the economy. But every dollar you spend on them is one dollar that can't be spent on the biggest problems (assuming of course that kind of infrastructure isn't one of those).  After spending trillions of dollars on spending, our GDP is still growing at only 2%. It was increasing about 3.5% every year from 1947-2012. Our jobs creation rate is still less than half the 250,000 jobs a month we created in the last 10-20 years (can't remember the exact number). We definitely need to spend differently to address the problems and get people back to work. As curtiscarlson said, we need middle class jobs. We particularly need those among America's youth so they can move out of their parents' houses and buy their own, which could really help the housing economy and create jobs for the lower class in turn and get us out of this depression. My thoughts are that we should use stimulus in new new industries such as those in high tech. I intentionally stated that very broadly, because we have many millenials who need to get to work.  Investing in different high growth industries could create jobs for people in any number of occupations. But if we don't do that while people still want to lend us money then we are going to be fucked in a few years when we are out of options and land in the same position as Greece.  edit:let me clarify the infrastructure thing. There was a town that spent millions rebuilding a sidewalk that was five years old that no one in the community wanted. Everyone there thought it was a nonsensical way of spending tax dollars and would have thought that money could have been better spent in another community that really needed problems resolved. Wouldn't it have made more sense to spend money somewhere where it was needed? then you could have created jobs AND created lasting value to an economy by fixing a structural problem that was holding the economy back. Why don't our politicians realize this?" Depends on the level of risk in the specific p2p provider. I've looked at lendinvest which secures loans against property. You can select loans based on loan-to-value ratio etc. Even if a recession happens, if the LTV is around 50% it would have to be a pretty awful recession for you to lose any money once they recover, although there will be a delay while you wait for the recovery to happen. I would thus consider this lower risk than other p2p options, so I'd be willing to put more money into it. At the end of the day as others have said there's no objective answer. This is just one factor to consider which I don't think has been pointed out yet on this discussion use all cash I have This is a horrible idea. Any problem requiring money will turn into a really big problem. For example any bigger problem with newly bought 2 room flat (emergency repair, damage by renter) will both reduce income and be impossible to fix until some money is secured. Whatever contribution higher than minimal depends on many factors (risks, alternative sources of money, loan conditions etc). But spending all cash and living paycheck to paycheck is unlikely to be worth it. it can be assumed, that I will always be able to find someone to rent my flats This is a very optimistic assumption. Since you are looking at preserving the principal, I would recommend laddered CDs and short term treasuries (TIPs/iBonds) The terms of most mortgages usually include the requirement for tax escrow. Some banks will let you handle your own taxes once you loan to value drops below 50%. It's annoying that you lose the use of your own funds, I agree. It can't hurt to write a note to the bank and see it they'll waive escrow.