Maryland Security Deposit Interest Calculator & Escrow Rules
$33.00
Calculated at the statutory rate of 1.5% per year under Md. Code, Real Prop. § 8-203(e) (Md. Code, Real Prop. § 8-203(e)).
Maryland Deposit Interest Laws at a Glance (Md. Code, Real Prop. § 8-203(e))
Accrues at 6-month intervals and is returned with the deposit balance within 45 days of tenancy termination.
| Statutory Interest Mandate | Mandatory under state law |
|---|---|
| Statutory Interest Rate | 1.5% per year (Md. Code, Real Prop. § 8-203(e)) |
| Minimum Tenancy Duration | 6 months of continuous tenancy |
| Escrow Account & Banking Rule | Must be maintained in an insured financial institution located in Maryland. |
| Governing Statute | Md. Code, Real Prop. § 8-203(e) ↗ |
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Key Maryland Statutory Nuances & Escrow Case Law
- $50 Minimum Deposit Threshold: Maryland statute requires interest only on deposits of $50 or more held for at least 6 months.
- Statutory 6-Month Accrual Interval: Interest accrues every 6 full months; tenancies terminated between 6-month marks do not accrue fractional interest.
- State Calculator Benchmark: Rate equals the U.S. Treasury 1-year yield or the rate published by the Maryland Department of Housing and Community Development (DHCD).
Baltimore County 12-Month Tenancy Interest
$1,600
12 months
$24.00
Under Md. Code, Real Prop. § 8-203(e), a $1,600 deposit held for 12 months at the 1.5% statutory rate earns $24.00 net interest owed to the tenant.
Maryland Security Deposit Interest FAQs
Are Maryland landlords required to pay interest on security deposits?
Yes. Under Maryland Real Property Code § 8-203(e), landlords must pay interest on security deposits of $50 or more held for at least 6 months.
How is the security deposit interest rate determined in Maryland?
The rate is determined by the statutory formula based on the U.S. Treasury 1-year yield, as published on the Maryland DHCD official statutory calculator.
Does interest accrue on short leases in Maryland?
No. Deposits held for less than 6 months do not accrue statutory interest under § 8-203(e)(1).
What is the penalty if a Maryland landlord fails to pay deposit interest?
Under Md. Code § 8-203(e)(4), failure to return deposit and interest within 45 days makes landlord liable for up to 3x the withheld amount plus attorney fees.