Security deposit interest in Maryland
Yes — Maryland landlords must pay interest on security deposits on deposits of $50 or more, after 6 months.
Work out what you are owed in Maryland
Enter your deposit and dates to see what Maryland law entitles you to.
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Not legal advice. This is an estimate for informational purposes only and is not legal advice. Security deposit laws change and vary by jurisdiction. Verify with the cited statute or consult a licensed attorney in your state before taking action.
How is the Maryland interest rate set?
Two periods, split at January 1, 2015. A lease entered before that date accrues 3 percent a year. A lease entered on or after it accrues the greater of 1.5 percent a year or the one-year US Treasury yield taken from the first business day of the calendar year, so the effective rate changes annually and is never below 1.5 percent. The Maryland Department of Housing and Community Development publishes the rule and its own calculator, which landlords are entitled to rely on, but that calculator covers only deposits held on or after 1 January 2015. One question is open: DHCD's wording is "leases entered before January 1, 2015" and does not say whether a pre-2015 lease renewed on or after that date counts as newly entered. A renewed tenancy spanning the cutover cannot be assigned to a period with confidence.
What does Maryland law actually say?
Maryland requires landlords to hold all security deposits in interest-bearing accounts at federally insured financial institutions with Maryland branches, in accounts devoted exclusively to security deposits, within 30 days of receipt. S. 5 percent per year.
Interest accrues at monthly intervals from the day the tenant gives the deposit and is not compounded. No interest is due unless the landlord has held the deposit at least 6 months, no interest accrues for any period shorter than a full month, and interest is payable only on deposits of 50 dollars or more. The deposit plus accrued interest must be returned within 45 days after the end of the tenancy, less any damages rightfully withheld.
Deposits are capped at one month's rent, or two months where the tenant qualifies for utility assistance and pays utilities to the landlord under a written agreement. No provision of this section may be waived in a lease. The Department of Housing and Community Development publishes the annual rates and an official calculator.
When must a Maryland landlord return the deposit?
45 days after the tenancy ends.
What if your landlord does not comply?
Failure without a reasonable basis to return the deposit plus accrued interest within 45 days: the tenant may recover up to three times the withheld amount plus reasonable attorney fees. Failure to send the itemised list of damages within 45 days forfeits the right to withhold anything for damages. Charging a deposit above the cap: up to three times the excess plus attorney fees. Failure to give a written receipt: 25 dollars.