Maryland security deposit interest
Maryland ties deposit interest to the market. Each year the rate is the greater of 1.5% or the yield on one-year U.S. Treasury securities on the first business day of the year. With Treasury yields above the floor since 2022, the 2026 rate is 3.47%, one of the highest statutory deposit rates in the country.
Print this page for a dated statement showing the rate applied to each year and the statute.
How Maryland deposit interest works
Interest accrues in monthly instalments from the day the deposit is paid and is not compounded. It is only owed if the deposit was $50 or more and held for at least six months, and it is paid out with the deposit within 45 days of the tenant leaving. The state housing department runs an official calculator, and a landlord who uses it is protected if the figure turns out to be slightly off.
The rules in brief
- The rate changes on 1 January each year, so a deposit held across several years earns each year’s rate for the months it covers.
- Interest accrues monthly: the statute counts whole months from the date the deposit was received.
- Since October 2024 the deposit itself is capped at one month’s rent.
- A landlord who withholds the deposit or interest without a valid reason can be ordered to pay up to three times the amount withheld plus attorney fees.
Maryland Department of Housing and Community Development. Each January; the DHCD calculator is the statutory safe harbor.
Maryland deposit interest rate history
The calculator uses the rate for each calendar year automatically when the rate field is left at the published figure.
| Year | Rate | Interest on $1,000 for the year |
|---|---|---|
| 2026 | 3.47% | $34.70 |
| 2025 | 4.17% | $41.70 |
| 2024 | 4.8% | $48.00 |
| 2023 | 4.72% | $47.20 |
| 2022 | 1.5% | $15.00 |
| 2021 | 1.5% | $15.00 |
| 2020 | 1.56% | $15.60 |
| 2019 | 2.6% | $26.00 |
| 2018 | 1.83% | $18.30 |
| 2017 | 1.5% | $15.00 |
| 2016 | 1.5% | $15.00 |
| 2015 | 1.5% | $15.00 |
Source: Maryland Department of Housing and Community Development.
Worked examples: one year held
At the current rate, for a deposit paid on 1 January 2025 and returned on 1 January 2026.
| Deposit | Interest-bearing portion | Interest owed |
|---|---|---|
| $1,000.00 | $1,000.00 | $41.70 |
| $1,500.00 | $1,500.00 | $62.55 |
| $2,500.00 | $2,500.00 | $104.25 |
Other Maryland deposit rules
- Maximum deposit: 1 month's rent.
- Return deadline: Within 45 days after the end of the tenancy, with accrued interest, less lawful deductions; itemized list of damages and costs must be sent within the same 45 days..
- Late fees: Late fee may not exceed 5% of the unpaid rent due for the rental period; for weekly tenancies, max $3 per week and $12 per month. No statutory grace period.
Full page: Maryland landlord and tenant rules.
Frequently asked questions
What is Maryland’s security deposit interest rate for 2026?
The rate is 3.47%, the one-year Treasury yield on the first business day of 2026. The statutory floor is 1.5%, so the rate can never fall below that.
Is deposit interest owed on a six-month lease in Maryland?
Only if the deposit was held for at least six months. A tenancy that ends a day short of six months earns nothing; one that runs six months earns interest for the whole period.
Is the DHCD calculator binding?
A landlord who uses the DHCD calculator has met the legal requirement even if the result differs slightly from a manual calculation. Our tool follows the same rules; use the state calculator for the final figure on a dispute.
Does interest compound?
No. Maryland specifies simple interest accruing at monthly intervals.