Assuming this is a **residential rental**, Maryland requires a dedicated, interest-bearing account, but does not require a bank product specifically named “escrow.”

1. **What type of account?** A separate savings account—or interest-bearing checking account—can meet the statutory requirements if it is devoted exclusively to security deposits, federally insured, and maintained at a Maryland branch. Deposit the money within **30 days** of receiving it; keep rent and operating funds elsewhere. A non-interest-bearing checking account would not qualify. [Maryland Real Property §8-203(d)](https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&enactments=false&section=8-203)

   Some banks also offer dedicated landlord accounts. For example, M&T offers a “Lease Security Deposit Account.” Tell the banker the account’s purpose so they can arrange appropriate ownership and tax reporting. [M&T deposit services](https://www.mtb.com/commercial/deposits)

2. **Can you reuse it?** Generally, **yes**. Maryland’s statute does not require a new account for each tenancy; it permits accounts holding aggregate security deposits. Keep a separate ledger for each tenant and enough money to cover all outstanding deposits. If the bank sets up tenant-specific subaccounts, follow its process for closing the old tenant’s subaccount and opening another. [Maryland §8-203(d)](https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&enactments=false&section=8-203)

3. **Are there fees?** That depends on the bank and product. Ask about maintenance fees, minimum balances, and charges when the account is empty between tenants. M&T, for example, lists a maintenance fee for its escrow master account, with no additional charge for subaccounts. Arrange to pay fees separately so they do not reduce the security deposits you must hold. [M&T escrow FAQ](https://www.mtb.com/commercial/deposits/escrow-migration)

Also budget for **interest owed to the tenant**: Maryland sets that rate by law, so it may exceed what your bank pays. The state provides a [security-deposit interest calculator](https://dhcd.maryland.gov/housing/renter-landlord-resources/rental-security-deposit-calculator).