Full question:
Are you supposed to get yearly interest on your security deposit?
- Category: Landlord Tenant
- Subcategory: Security Deposit
- Date:
- State: Maryland
Answer:
According to Maryland law, landlords must return a tenant's security deposit within 45 days after the tenancy ends. This includes any simple interest that has accrued at a rate of three percent per year, minus any lawful deductions for damages.
Interest on the security deposit accrues every six months, starting from the date the tenant pays the deposit. Note that this interest is not compounded. Additionally, interest is only applicable to security deposits of fifty dollars or more.
If a landlord fails to return the security deposit and accrued interest without a valid reason within the 45-day period, the tenant may be entitled to recover up to three times the withheld amount, plus reasonable attorney's fees.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.