Where to keep my tenants security deposit to accrue interest (MD)

Question

Hello all,

I know each state is different, but in Maryland we are required to return our tenant's security deposit with accrued interest. Typically this isn't a problem because the percentage is around 1%. However, our small PM company is picking up our 1st client in Prince Georges (PG) County. Their County law requires a 3% return on the security deposit. Does anyone know what type of account I can expect to see 3% returns and still stay within the law? It seems like madness!

Thanks in advance!

Laticia Braxton · Answer

Hello Joshua. Go to M&T Bank. They have a security deposit escrow account available. Under your master account, the tenants will have "sub-accounts" which will hold their deposits, thus keeping you compliant with the law. Go into a branch and ask the small business advisor for more details. Best of luck to you.

Brian Pendergraft · Answer

None. Make it clear to your property owner client that he/she is responsible for paying the interest.

Joshua Velte · Answer

Thanks for the feedback everyone, greatly appreciated! @Laticia Braxton I believe I just heard your name mentioned the other day. I was talking to a gentleman named Tim who does snow removal up around Aberdeen and he said he used to do a lot of work with you. Small world!

Laticia Braxton · Answer

You're more than welcome and yes! Tim is a great guy and was my saving grace during any snow/ice event at a shopping center I managed in my past career! Super dependable and friendly guy. It truly is a small world :-)

Russell Brazil · Answer

You wont find a bank that will give you the interest. It is your responsibility to pay the interest, not the banks. You simply put it into a savings account with no other funds comingled with it.

Where to keep my tenants security deposit to accrue interest (MD)

Where to keep my tenants security deposit to accrue interest (MD)

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