Landlords must pay 1.50% interest on residential security deposits for calendar year 2021. 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 4, 2021, the US Treasury Yield Curve Rate was 0.1%, therefore, interest rate on Security Deposits during the calendar year 2021 is 1.50%
On January 2, 2020, the US Treasury Yield Curve Rate was 1.56%, therefore the rate to be paid during calendar year 2020 is 1.56%
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).
0.2167% for every month a deposit is held beginning January 1, 2019. (2.60% annual rate).
0.1300% for every month a deposit is held beginning January 1, 2020. (1.56% annual rate).
0.125% for every month a deposit is held beginning January 1, 2021 (1.50% annual rate).
