Montgomery County Security Deposit interest

[Tom Harkins]

Where do landlords in Montgomery County, MD keep your tenants' security deposits? I understand the county rule requiring paying 1.5% interest minimum. I also found the online calculator they provide. I'm asking if anyone has found a savings/CD/other account approaching that level of return, or if the expectation is that the interest comes (mostly) out of my pocket.

[Russell Brazil]

It needs to be deposited in an FDIC insured account in the state of Maryland and not comingled with personal funds. It is the landlords obligation to pay the interest dictated.

[James Gaither]

@Tom Harkins there are a few deposit accounts out there that offer comparable rates, but I wouldn’t spend too much time looking for the best one. Many of my clients end up just paying interest differences out of pocket and deposit where it is convenient for them regardless of the interest rate. Get the best rate you can, but it’s far more important that you keep it separate, include all the necessary 8-203 info in your lease, and properly account for it at the end of the tenancy.

The DHCD calculator (it that’s what you’re looking at) is great for deposits received after 1/1/2015-and a landlord is permitted to rely upon it per the MD RP Article.

[Tom Harkins]

Thanks @James Gaither and @Russell Brazil. These responses are consistent with my understanding

[Michael P.]

You are talking about finding an account to recoup $27?

$1800 rent x 1.5%

You need to set your financial goals a little higher ma brotha