An escrow account is an account at a financial institution . The credit available there can only be used after a specified blocking period has expired. If there is interest income from the balance in the account, this is considered taxable income from capital assets , even if the blocking period has not yet expired.
A special form of the blocked account is the deposit savings book or the rental deposit account, to which the rental deposit is paid when a rental agreement is concluded. Only after termination of the underlying contract will the account be closed and paid out to the tenant, including interest. Retaining an amount by the landlord is only permitted under certain circumstances (Germany) or through a legally binding order for payment or a corresponding court judgment (Switzerland).