# Help with calculation of interest on a security deposit on a rented house?

I know you answered a similar question on another post but I am in dire need of help. I was wondering if you could help me out with my security deposit calculations? We paid \$1795 for our deposit in July 2008. We moved out in July 2013 so we were there renting for 5 years.

My landlord is trying to screw us out of the interest she owes us on our deposit. I have tried to run the numbers and figure it out myself but I don't know what interest rate to use. Our lease says basically the same thing as this below info from the MD attorney general's website:

Quoted from http://www.oag.state.md.us/Consumer/landlords.htm#deposits, here is the way to calculate the interest on security deposit a landlord in Maryland pays to his tenant:

The landlord must put the security deposit in an escrow account. When returning security deposits of \$50 or more, the landlord must include simple interest of 3 percent per year, accrued at six-month intervals from the date the security deposit was paid (1.5 percent every six-month period).

Math is not my thing. I don't get this whole interest thing and my landlord is trying to use some scale and chart that I don't understand one bit. Please please please help us.

• Why do you think the landlord is trying to screw you out of the interest? Commented Aug 31, 2013 at 1:39

This will use a simple interest formula, or `I = P x r x t` where `P` is the principal amount of \$1795.00, `r` is the interest rate of 3% per year (or 3/100=0.03), and `t` is the time involved of 5 year. The interest is therefore `\$269.25`.
So adding the interest to your principal, we get a current day deposit value of \$1795.00 + \$269.25 = `\$2064.25` so hope that helps you out.