I was just kicking around the idea in my head of putting deposit money into a super safe interest earning savings account or 11 month cd. Could easily be returned after the year is up and the tenants move out.   I assumed there'd be laws governing this (ie is it allowed, who gets the interest, etc) and came across something on an Ohio Code website that states:

(A) Any security deposit in excess of fifty dollars or one month's periodic rent, whichever is greater, shall bear interest on the excess at the rate of five per cent per annum if the tenant remains in possession of the premises for six months or more, and shall be computed and paid annually by the landlord to the tenant.

Help me understand that. Is it saying if I were to charge MORE than 1 month's rent as a deposit, I'd need to give back 5% interest on the amount over 1 month's rent?  That's all I can find on it, so I'm thinking it would be OK for me to open an 11 month CD or savings account for security deposits and earn interest (my deposits will not be more than 1 months rent)? I'm just getting started in this and want to make absolutely sure I'm maximizing potential while keeping it all by-the-books.  I'm not seeing any rules in Ohio about setting it in a trust, etc. I know to keep the money separate from all other money.