deposit-interest

Security Deposit Interest in Maryland: greater of 1.5%/year (2026)

Maryland requires landlords to pay simple interest on security deposits of $50 or more: for leases entered into after Jan 1, 2015, the rate is th… Calculator, statute citation, Last Verified date o

Rule verified: 2026-10-28

Quick answer

Yes — Maryland requires landlords to pay interest on qualifying security deposits. Maryland requires landlords to pay simple interest on security deposits of $50 or more: for leases entered into after Jan 1, 2015, the rate is the greater of 1.5%/year or the U.S. Treasury yield curve rate for 1 year; interest accrues monthly but is owed only after 6 months of tenancy. The rule comes from Md. Code, Real Property § 8-203(d), (e). State statute (official text) · 2026-10-28

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State pre-filled: Maryland — rule applied per Md. Code, Real Property § 8-203(d), (e). Switch the state if your property is elsewhere.

StateSecurity deposit ($)Tenancy startTenancy end

The current rate in Maryland

Maryland does not fix the rate in the statute — it moves with a benchmark: Real Prop § 8-203(d): rate is the greater of the daily U.S. Treasury yield curve rate for 1 year or 1.5% a year, determined based on the first business day of the calendar year (2016+); the Maryland DHCD publishes an official calculator (doit.state.md.us/landlordCalculator). The specific 2026 numeric rate is not published as a static number on the .gov pages (to be verified - Treasury yield governs whenever it exceeds the 1.5% floor)..

Because the benchmark resets periodically, always check the current published value before relying on an older figure. Where we have confirmed the current value against the official announcement, the calculator above applies it; where we have not, the calculator says so instead of guessing.

How interest must be paid

Interest accrues as Simple interest; accrues monthly from the beginning of the tenancy; no interest is due for any period less than a full month. Interest accrues monthly; statute provides for payment to the tenant annually (at lease anniversary) or credited at end of tenancy; deposit plus accrued interest must be returned within 45 days after lease termination (with itemized deductions if any)

Who the law applies to

Security deposits of $50 or more (deposits under $50 carry no interest obligation); interest payable only if the tenant occupied the dwelling 6 consecutive months or more; applies statewide in all Maryland counties; deposit itself capped at 2 months' rent

Cities that add their own rules

Montgomery County: landlords must place security deposits in an interest-bearing account at a Maryland branch of a federally insured institution within 30 days of receipt (Montgomery County DHCA); state interest rate and eligibility rules still govern.

How Maryland compares in the South Atlantic

State	Rate	Rule
Florida	5%/yr simple (surety bond); interest-bearing account: 75% of the annua	no statewide requirement
Georgia	—	no statewide requirement
Maryland	greater of 1.5%/year or U.S. Treasury 1-year yield curve rate (leases	interest required
North Carolina	—	no statewide requirement
South Carolina	—	no statewide requirement
Virginia	—	no statewide requirement
West Virginia	—	no statewide requirement

The statute behind it

| Field | Value | | --- | --- | --- | | Citation | Md. Code, Real Property § 8-203(d), (e) | | Official text | mgaleg.maryland.gov | | Last verified | 2026-10-28 |

Cross-checked against: The People's Law Library of Maryland (University of Maryland) - Security Deposits.

Statutes get amended. If you are relying on this page — for a move-out, a dispute, or a lease draft — click through to the official text and confirm the current wording.

FAQ

Does Maryland require landlords to pay interest on security deposits?

Yes. Under Md. Code, Real Property § 8-203(d), (e), qualifying landlords in Maryland must pay interest — currently Greater of 1.5%/year or U.S. Treasury 1-year yield curve rate (leases on/after 2015-01-01); 3%/year (leases before 2015). Security deposits of $50 or more (deposits under $50 carry no interest obligation); interest payable only if the tenant occupied the dwelling 6 consecutive months or more; applies statewide in all Maryland counties; deposit itself capped at 2 months' rent

How is deposit interest calculated in Maryland?

At Greater of 1.5%/year or U.S. Treasury 1-year yield curve rate (leases on/after 2015-01-01); 3%/year (leases before 2015). Simple interest; accrues monthly from the beginning of the tenancy; no interest is due for any period less than a full month The calculator at the top of this page applies exactly this rule to your deposit amount and dates.

When do I get the interest?

Interest accrues monthly; statute provides for payment to the tenant annually (at lease anniversary) or credited at end of tenancy; deposit plus accrued interest must be returned within 45 days after lease termination (with itemized deductions if any)

Independent second source · 2026-10-28