Maryland Security Deposit Interest
Maryland requires deposit interest under certain conditions. The rate rule includes 3.47%. Condition: Applies to deposits of $50 or more. The deposit must be held at least 6 months; only full months count.
Interest rules
| Interest required | Conditional |
|---|---|
| Condition | Interest shall be payable only on security deposits of $50 or more. No interest is due or payable unless the landlord has held the security deposit for at least 6 months; or for any period less than a full month. |
| Rate rule | Simple interest at the greater of the daily U.S. Treasury yield curve rate for 1 year, as of the first business day of each year, or 1.5% a year. DHCD maintains a list or calculator that a landlord is entitled to rely on. |
| Current rate | 3.47% per year (greater of 1.5% floor and 1-year Treasury CMT as of first business day of 2026, January 2) |
| How interest builds up | Simple interest, not compounded. Accrues at monthly intervals from the day the tenant gives the landlord the security deposit. |
| When it must be paid | Within 45 days after the end of the tenancy, returned with the security deposit (less damages rightfully withheld). |
| When interest may be lost | No separate forfeiture rule is supplied here; check the statute before assuming interest is lost. |
| What you can recover | If the landlord, without a reasonable basis, fails to return any part of the security deposit, plus accrued interest, within 45 days after the termination of the tenancy, the tenant has an action of up to threefold of the withheld amount, plus reasonable attorney's fees. |
| Statute | Md. Code, Real Prop. § 8-203(e) |
Statute says
If the landlord, without a reasonable basis, fails to return any part of the security deposit, plus accrued interest, within 45 days after the termination of the tenancy, the tenant has an action of up to threefold of th
What this means
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Condition: Interest shall be payable only on security deposits of $50 or more. No interest is due or payable unless the landlord has held the security deposit for at least 6 months; or for any period less than a full month.
The result assumes this condition is met.
Simple interest at the greater of the daily U.S. Treasury yield curve rate for 1 year, as of the first business day of each year, or 1.5% a year. DHCD maintains a list or calculator that a landlord is entitled to rely on.
Listed rate: 3.47% per year (greater of 1.5% floor and 1-year Treasury CMT as of first business day of 2026, January 2)
Accrual: Simple interest, not compounded. Accrues at monthly intervals from the day the tenant gives the landlord the security deposit.
Enter your deposit and dates to see an estimate.
Free Maryland template, built from verified state data
I rented [rental property address] from [lease start date] to [move-out date]. I paid a security deposit of $[amount]. I returned the keys on [date] and gave you my forwarding address in writing on [date]. Under Maryland law (Md. Code Ann., Real Prop. § 8-203), a landlord must return the deposit or send a written, itemized list of deductions within 45 calendar days after the end of the tenancy / termination of the tenancy.
FAQ
Does my landlord owe deposit interest in Maryland?
Only when the legal condition is met. Interest shall be payable only on security deposits of $50 or more. No interest is due or payable unless the landlord has held the security deposit for at least 6 months; or for any period less than a full month.
Which interest rate should I use?
3.47% per year (greater of 1.5% floor and 1-year Treasury CMT as of first business day of 2026, January 2) Simple interest at the greater of the daily U.S. Treasury yield curve rate for 1 year, as of the first business day of each year, or 1.5% a year. DHCD maintains a list or calculator that a landlord is entitled to rely on.
When must the landlord pay the interest?
Within 45 days after the end of the tenancy, returned with the security deposit (less damages rightfully withheld).