Security deposit interest

In Maryland, a security deposit earns interest for the tenant. The landlord returns it with the deposit within 45 days after the tenancy ends. As of October 2026, the rate is 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, whichever is greater.

Three limits shape the math. Interest is simple, not compounded. It is payable only on deposits of $50 or more. No interest is due unless the landlord held the deposit at least 6 months, or for any period shorter than a full month.

The state Department of Housing and Community Development must publish the yearly Treasury rates or an online calculator, and landlords may rely on either one. Check the rate for the year each deposit was received before you send a refund. The interest is paid on top of the security deposit itself, and it is part of the amount you must return when you itemize damage.

This page is general information, not legal advice. Laws change; check the linked official source or talk to a Maryland attorney.