…And do I need one?

Maybe. If you are purchasing a home with a mortgage, most lenders will require that you have an escrow account set up to pay for property taxes and insurance. If the lender does not require an escrow account, whether you need one will depend on how well you save money. It can be difficult to plan for paying a large sum at once, like property taxes and insurance, and it can be easier to make the smaller, monthly payments into the escrow account. If you are looking to set up an escrow account for any other reason, you may want to consult with a financial advisor and see if it is worth the cost of paying a broker.  

For more information see: 24 C.F.R. 3500.17; What is an escrow or impound account? http://www.consumerfinance.gov/askcfpb/140/what-is-an-escrow-or-impound-account.html (Last visited June 8, 2015)