**1) Banks offer accounts for this purpose, and a dedicated interest-bearing savings account can also satisfy Maryland’s requirements.**

For example, [M&T offers a Lease Security Deposit Account](https://www.mtb.com/commercial/commercial-deposit-services). Maryland’s account requirements are that it:

- Earn interest.
- Be maintained at a Maryland branch of a federally insured financial institution.
- Hold security deposits exclusively.
- Receive each deposit within 30 days of collection.

An ordinary **non-interest-bearing checking account would not qualify**. Tell the bank you are holding tenant security deposits so it can confirm the appropriate account type and ownership designation. These requirements appear in [Maryland Real Property §8-203(d)](https://www.mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&enactments=false&section=8-203).

**2) Yes, you can generally reuse the account for later tenants.**

The statute allows an account to hold multiple tenants’ deposits, provided the total balance covers all deposits you owe. Keep a separate ledger for each tenant’s deposit, interest and refund. If the bank sets up a subaccount in a particular tenant’s name, follow its procedure for closing that subaccount and opening the next tenant’s. [Maryland §8-203(d)](https://www.mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&enactments=false&section=8-203).

**3) Fees depend on the bank and account.**

For example, M&T states that its escrow service charges a maintenance fee for each master account, with no additional charge for subaccounts. Ask for the current fee schedule and any minimum-balance requirements before opening one. [M&T escrow FAQ, question 14](https://www.mtb.com/commercial/deposits/escrow-migration).

Treat bank fees as your expense: Maryland permits withholding deposits for specified unpaid rent or damages, and requires you to maintain enough funds to cover your deposit obligations. [Maryland §8-203(d), (f)](https://www.mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=grp&enactments=false&section=8-203).

One additional budgeting point: **the interest you owe the tenant may exceed what the bank pays.** Maryland sets the tenant’s interest by law; the state’s [security deposit calculator](https://dhcd.maryland.gov/housing/renter-landlord-resources/rental-security-deposit-calculator) helps calculate it. [Montgomery County’s explanation](https://www.montgomerycountymd.gov/DHCA/housing/landlordtenant/security_deposits.html).