# Maryland Security Deposit Interest Rate: Every Year's Rate and How the Math Works Maryland's 2026 security deposit interest rate is 3.47%. The complete rate table since 2015, the six-month rule, and a worked example of the exact math. - Published: 2026-08-18 - Author: Jordan Walsh - Canonical: https://www.evictpro.us/blog/maryland-security-deposit-interest-rate --- Every January, the number changes. Maryland ties its security deposit interest rate to the 1-year U.S. Treasury yield, so the rate a landlord owes is not one number but a stack of them: one per calendar year the deposit was held. Return a deposit after a five-year tenancy and the payout spans five different rates, each applied month by month. This post is the reference for that stack: the current rate, the complete table back to 2015, exactly how the monthly math works, and a worked example you can check against the state's own calculator. - **3.47%**: 2026 annual rate (greater of 1.5% or the 1-yr Treasury yield) - **6 months**: Minimum holding period (no interest owed below it) - **45 days**: Return deadline (deposit plus interest, after move-out) **The short version:** The 2026 rate is 3.47% simple annual interest. Each calendar year's rate is the greater of 1.5% or the 1-year U.S. Treasury yield on the first business day of January. Interest accrues in monthly periods from the day the tenant paid the deposit, with no compounding and nothing for partial months. No interest is owed at all if the deposit was under $50 or held less than six months. The full payout, deposit plus interest less lawful deductions, is due within 45 days of move-out. Use the [free deposit interest calculator](/tools/security-deposit-calculator) to get the exact number and a signable return statement. ## The Complete Rate Table, 2015 to 2026 Maryland rewrote the interest formula effective January 1, 2015. Since then, [RP § 8-203(e)](https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp§ion=8-203) sets each calendar year's rate at the **greater of 1.5% or the daily U.S. Treasury yield curve rate for one year**, measured on the first business day of that year. | Calendar year | Annual rate | | ------------- | ----------- | | 2026 | 3.47% | | 2025 | 4.17% | | 2024 | 4.80% | | 2023 | 4.72% | | 2022 | 1.50% | | 2021 | 1.50% | | 2020 | 1.56% | | 2019 | 2.60% | | 2018 | 1.83% | | 2017 | 1.50% | | 2016 | 1.50% | | 2015 | 1.50% | Two patterns worth noticing. First, the 1.5% floor did all the work during the low-rate years: 2015 through 2017, and again in 2021 and 2022, when the 1-year Treasury opened the year below 1.5%. Second, the 2022-to-2023 jump is enormous: a deposit's monthly interest more than tripled overnight when the rate went from 1.50% to 4.72%. Landlords who last computed deposit interest before 2023 are usually surprised by how much a current payout has grown. Tenancies that began before 2015 accrued under the older flat regime, 3% per year (and 4% before October 2004), with different accrual rules. Everything below covers deposits paid on or after January 1, 2015. ## How the Monthly Math Actually Works The state's methodology, published by the Maryland Department of Housing and Community Development alongside its official calculator, comes down to five rules: 1. **The clock starts when the deposit is paid**, not when the lease begins. A deposit collected three weeks before move-in starts earning three weeks before move-in. 2. **Interest accrues in monthly periods** anchored to that payment date. A deposit paid on the 9th accrues in periods running the 9th through the 8th. 3. **Each period earns the deposit times the annual rate of the calendar year the period begins in**, prorated by the actual days in the period over a 365-day year. A period that starts in December and ends in January uses December's year. 4. **Partial months earn nothing.** If the tenancy ends 18 days into an accrual month, those 18 days accrue no interest. 5. **No compounding.** The interest is simple from first month to last. And the two gatekeeping rules that come before any math: deposits under **$50** never earn interest, and no interest at all is owed unless the landlord held the deposit for **at least six months** under § 8-203(e)(3). ## A Worked Example, to the Penny Take a $1,850 deposit paid on April 9, 2021, for a tenancy that ended June 27, 2026. The deposit accrued for 62 full monthly periods, April 9 to May 8, May 9 to June 8, and so on. The 2021 and 2022 periods earned 1.5%, the 2023 periods 4.72%, the 2024 periods 4.80%, the 2025 periods 4.17%, and the 2026 periods 3.47%. The final stretch, June 9 to June 27, 2026, was a partial month and earned nothing. Total interest: **$328.72**. Total due back to the tenant, absent deductions: **$2,178.72**. At 1.5% alone that tenancy would have earned roughly $143, so the 2023 rate jump more than doubled the payout. That is the practical reason to compute rather than estimate: the multi-year rate stack moves real money. You can reproduce that number two ways. The State of Maryland's official calculator at dhcd.maryland.gov computes the interest figure. Or use the [free Maryland Security Deposit Calculator](/tools/security-deposit-calculator), which applies the same methodology, shows the full month-by-month schedule, and also generates a signable Security Deposit Return Statement with the itemized deduction list § 8-203 requires, ready to print and mail with the refund. ## What You Owe at Move-Out The interest is only half the compliance picture. Within **45 days** after the tenancy ends, the landlord must return the deposit plus all accrued interest, less lawful deductions, by first-class mail to the tenant's last known address. If anything is withheld for damages, the same 45-day window requires a **written list of the damages claimed with an itemized statement of costs incurred**, sent by first-class mail, with supporting receipts, invoices, or a written estimate. Miss that itemization and the right to withhold is **forfeited entirely**. Withhold without a reasonable basis and the tenant can recover up to **three times the withheld amount plus attorney's fees**. One adjacent number that changed recently: the maximum deposit a Maryland landlord may collect is now **one month's rent** for leases signed on or after October 1, 2024, under the Renters' Rights and Stabilization Act. The full compliance picture, receipts, escrow accounts, deductions, and penalties, is covered in the [landlord's guide to Maryland security deposit law](/blog/maryland-security-deposit-law-landlord-guide). **The rate stack in one paragraph:** One rate per calendar year: the greater of 1.5% or the January 1-year Treasury yield. 3.47% for 2026. Monthly accrual from the day the deposit was paid, prorated over 365-day years, no compounding, no partial months, nothing under $50 or six months. Compute the exact figure, do not estimate: multi-year tenancies stack five different rates, and the 45-day return deadline carries a 3x penalty for getting it wrong. **Not legal advice**: This article is general educational information about Maryland landlord-tenant law and procedure. It is not legal advice and does not create an attorney-client relationship. Laws, court fees, and local rules change over time. For advice on your specific situation, consult a licensed Maryland attorney or a qualified housing counselor. **Related reading:** - [Maryland Security Deposit Law: The Landlord's Guide to RP § 8-203 in 2026](/blog/maryland-security-deposit-law-landlord-guide) - [Maryland's 5% Late Fee Cap: What Landlords Can Actually Charge](/blog/maryland-late-fee-5-percent) - [The Rent Ledger That Wins in Maryland Rent Court](/blog/maryland-rent-ledger-for-court) - [Maryland's Tenants' Bill of Rights: Landlord Compliance Guide](/blog/maryland-tenants-bill-of-rights-landlord) - [How to Evict a Tenant in Maryland: The Complete 2026 Guide](/blog/how-to-evict-tenant-maryland) Returning a deposit this month? Get the exact interest figure and a signable return statement in about two minutes: **Maryland Security Deposit Calculator, free**: https://www.evictpro.us/tools/security-deposit-calculator ## Frequently asked questions ### What is the security deposit interest rate in Maryland for 2026? 3.47% simple annual interest. Maryland's rate for each calendar year is the greater of 1.5% or the 1-year U.S. Treasury yield on the first business day of that year, and on January 2, 2026 that Treasury yield was 3.47%. The rate applies to accrual periods that begin during 2026. ### How do I calculate the interest owed on a Maryland security deposit? Interest accrues in monthly periods anchored to the date the tenant paid the deposit. Each full month earns the deposit times that calendar year's annual rate, prorated by the days in the period over a 365-day year. Partial months at the end of the tenancy earn nothing, and interest is never compounded. The practical route is a calculator that already knows every year's rate: enter the deposit, the date it was paid, and the move-out date. ### Does a landlord owe deposit interest on a short tenancy? Usually not. Under RP § 8-203(e)(3), no interest is due unless the landlord held the deposit for at least six months, and deposits under $50 never accrue interest. A tenant who leaves after four months gets the deposit back, less lawful deductions, with no interest. ### Has the Maryland deposit interest rate changed over time? Yes, every January. From 2015 through 2017 and again in 2021 and 2022 the 1.5% statutory floor applied because Treasury yields were low. The rate jumped to 4.72% in 2023, 4.80% in 2024, 4.17% in 2025, and 3.47% in 2026. Before 2015 Maryland used a flat 3% rate, and 4% before October 2004. ### Which rate applies when a tenancy spans several years? Each monthly accrual period uses the rate of the calendar year in which the period begins. A deposit held from 2021 through 2026 earns 1.5% on its 2021 and 2022 periods, 4.72% on 2023 periods, 4.80% on 2024, 4.17% on 2025, and 3.47% on 2026 periods. A period that straddles New Year's Eve uses the earlier year's rate. ### When is the interest actually paid to the tenant? At move-out. The deposit plus all accrued interest, minus lawful deductions, must be returned within 45 days after the tenancy ends, by first-class mail to the tenant's last known address. Withholding without a reasonable basis exposes the landlord to up to three times the withheld amount plus reasonable attorney's fees.