What Maryland Deposit Interest Works Out To
| Deposit | 1 year | 2 years | 5 years |
|---|
| $1,000 | $15 | $30 | $75 |
| $1,500 | $23 | $45 | $113 |
| $2,500 | $38 | $75 | $188 |
| $5,000 | $75 | $150 | $375 |
Figures use simple interest at 1.5%, which is how Maryland calculates it. They are what the statute produces, not what a landlord necessarily paid — the gap between the two is the reason the figure is worth checking.
When the Interest Is Never Paid
Deposit interest is one of the more commonly overlooked obligations in residential tenancy, partly because the amounts are small enough that neither side tracks them and partly because it is often owed annually while the deposit itself only comes up at move-out. A tenant who has never received an interest payment or an annual statement has usually not been told the obligation exists.
What tends to matter is documentation rather than argument. The lease records the deposit amount and the date it was paid. Bank records show when it cleared. The statute supplies the rate and the schedule, and the arithmetic follows from those three things. Where a landlord is required to give an annual statement naming the bank and the interest payable, the absence of that statement is itself part of the record.
How Maryland Compares to Nearby States
Deposit interest is one of the sharpest state-line differences in residential tenancy: neighboring states frequently land on opposite sides of it.
The full picture across all 51 jurisdictions is on the deposit interest by state index.
Common Questions About Maryland Deposit Interest
Does my landlord have to pay interest on my security deposit in Maryland?
Yes. Maryland requires it under Md. Real Prop. § 8-203(e), verified as of September 11, 2026. Deposits of $50 or more, held at least 6 months. The rate is the greater of 1.5% a year or the 1-year US Treasury yield. With the deposit at the end of the tenancy. Interest accrues at monthly intervals from the day the deposit was given.
How much interest is a security deposit worth in Maryland?
At 1.5%, a $1,000 deposit earns about $15 a year and a $2,500 deposit about $38 a year, calculated as simple interest. Over a multi-year tenancy those figures add up to more than most tenants expect, which is why the annual statement matters.
When does a Maryland landlord have to pay the interest?
With the deposit at the end of the tenancy. Interest accrues at monthly intervals from the day the deposit was given. The deposit itself is subject to a separate deadline: 45 days after the tenancy ends.
What is unusual about the Maryland rule?
The two-part formula means the tenant always gets at least 1.5%, and more in years when short-term Treasury yields run above that. Interest accrues monthly, not annually, which matters on a long tenancy.