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

[Joshua Velte]

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]

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.