Security deposit interest in Maryland
Verified against Md. Code, Real Prop. § 8-203(e) and agency sources on 2026-07-04. Not legal advice.
Maryland requires landlords to pay interest on security deposits.
- Applies when: deposits of $50 or more, held at least 6 months
- Rate: Simple interest at the greater of 1.5% per year or the 1-year U.S. Treasury constant-maturity (yield curve) rate as of the first business day of each calendar year; accrues monthly, not compounded; landlord may rely on the MD DHCD rate list/calculator as a safe harbor
- Current rate: 3.47% (2026)
- Paid: at termination (with deposit, within 45 days)
- Statute: Md. Code, Real Prop. § 8-203(e) · primary source
2026 rate = 1-year Treasury CMT on 1/2/2026 (3.47%), which exceeds the 1.5% floor. Deposit cap is 1 month's rent for leases signed on/after 10/1/2024. Confirm against the DHCD calculator, the statutory safe harbor.
Security deposit interest calculator
Frequently asked questions
Do landlords have to pay interest on security deposits in Maryland?
Yes. Simple interest at the greater of 1.5% per year or the 1-year U.S. Treasury constant-maturity (yield curve) rate as of the first business day of each calendar year; accrues monthly, not compounded; landlord may rely on the MD DHCD rate list/calculator as a safe harbor (Md. Code, Real Prop. § 8-203(e)).
What is the Maryland security deposit interest rate for 2026?
3.47%. Simple interest at the greater of 1.5% per year or the 1-year U.S. Treasury constant-maturity (yield curve) rate as of the first business day of each calendar year; accrues monthly, not compounded; landlord may rely on the MD DHCD rate list/calculator as a safe harbor
When must deposit interest be paid in Maryland?
At termination (with deposit, within 45 days).
Anything else Maryland landlords should know about deposit interest?
2026 rate = 1-year Treasury CMT on 1/2/2026 (3.47%), which exceeds the 1.5% floor. Deposit cap is 1 month's rent for leases signed on/after 10/1/2024. Confirm against the DHCD calculator, the statutory safe harbor.
Deposit interest in other states
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Related: rent increase rules in Maryland · prorated rent calculator