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An initial escrow deposit is the amount that you will pay at closing to start your escrow account, if required by your lender. This initial amount may be different from what you pay monthly to maintain the escrow account.
(TMFMathGuy). May 25, 2015 at 2:45PM. An escrow account is a broad term that refers to money held by a third party for the purpose of two other parties conducting a transaction, but is most commonly used for real estate purposes.hy lenders use escrow accounts From a lender's perspective, the purpose of having an escrow account is to make sure the property taxes and homeowners get paid every year, on time, to prevent any risk to their investment -- after all, the bank owns a portion of the home until you pay it off.