Security Deposit Interest Rate for Maryland Residential Tenants

Security Deposit Interest Rate for Maryland Residential Tenants

Landlords must pay 2.6% interest on residential security deposits for calendar year 2019.  Interest is computed monthly.  The rate is mandated by Maryland Law to be the greater of 1.5% or the US Treasury Yield Curve Rate for 1-year on the first business day of each year.   Click here: https://www.treasury.gov/resource-center/data-chart-center/interest-rates/pages/textview.aspx?data=yield

On January 2, 2019, the US Treasury Yield Curve Rate was 2.60%.

We suggest changing the language in your lease agreement and/or security deposit receipt, deleting any reference to paying a specified interest rate and replacing it with “Security Deposit Interest shall be paid at the rate specified by Maryland Law Real Property Article 8, Section 203”.

Here is a history of the rates of interest required by landlords of residential properties to be paid to tenants:

1.5% for every 6 month period a deposit is held from July 1, 1972 to July 1, 1980.  (3% annual rate).

2% for every 6 month period a deposit is held from July 1, 1980 to September 30, 2004.  (4% annual rate).

1.5% for every 6 month period a deposit is held from October 1, 2004 to December 31, 2014.  (3% annual rate).

0.125% for every month a deposit is held from January 1, 2015 to December 31, 2017.  (1.5% annual rate).

0.1525% for every month a deposit is held beginning January 1, 2018.  (1.83% annual rate).

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Ben Frederick Realty

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