A holding account, also known as an ESCROW or escow account, is a type of financial arrangement in which funds are held by a third party on behalf of two other parties involved in a transaction. The funds are held until the conditions of the transaction are met, at which point they are released to the appropriate parties. ESCROW accounts are commonly used in real estate transactions, where the buyer and seller agree to use a third-party to hold the funds until the sale is finalized. They can also be used in other types of transactions, such as business deals or legal settlements.