# Financial Institutions (GFI)

## Title 5. Banking Institutions -- General Provisions

### Subtitle 3. Deposits

#### Section 5-301

Any banking institution may offer time account services to its customers.

#### Section 5-302

(a)

  (1) As to the interest bearing account of each depositor in a banking institution, the banking institution shall generally make available to any customer with an existing account, in addition to actually giving to the customer, on the opening of the interest bearing account and, later, on demand of the customer:

    (i) Written notice of:

      (1) The annual rate of simple interest currently in effect;

      (2) The dates, if any, on which the current rate of interest may be changed, and the terms and conditions under which each successive interest rate will be applied;

      (3) The date or point in time on which the deposit begins to earn interest;

      (4) The method of determining the account balance on which interest earned is calculated, including the methods for day of deposit to day of withdrawal and low periodic balance;

      (5) Whether interest is compounded and where applicable, the period for compounding;

      (6) The annual percentage yield in 1 year based on the rate of simple interest and compounding method;

      (7) The date or point in time when interest earned is credited to the account;

      (8) The amount of loss of accumulated earned interest if an account is closed before the date on which interest is regularly credited;

      (9) The policy on the availability of deposited funds; and

      (10) Any fees, charges, or penalties which may be applied and the conditions under which the fees, charges, or penalties may be assessed; and

    (ii) The following written notice:

    "Under Maryland law, all funds remaining in this interest bearing account become the property of this State after the account has been inactive for 5 years and notice is sent to the depositor at that depositor's last known address. This account will be considered inactive if the owner has not: (1) increased or decreased the amount in the account; (2) presented the passbook or other similar evidence of the account for the crediting of interest; (3) written to this financial institution about the account; or (4) otherwise indicated an interest in the account as evidenced by a memorandum on file with this financial institution."

  (2) Not less than 30 days before a banking institution adopts any change regarding any information required under paragraph (1)(i) of this subsection, the banking institution shall inform each customer of the change in the banking institution's periodic statement or by written notice.

(b) A banking institution shall pay interest on each interest bearing account that is instituted for a specific purpose, including "Christmas" or "vacation" accounts, for a period of 1 year or less at an annual rate not less than the weekly average yield on United States Treasury securities adjusted to a constant maturity of 1 year, as published by the Federal Reserve in "Selected Interest Rates (Daily) - H.15", as of the first business day of the calendar year.

(c) A banking institution that fails to comply with subsection (a) or (b) of this section shall be liable to any customer of the banking institution who sustains any injury or loss as the result of the failure to comply for:

  (1) All foreseeable losses incurred by the customer; and

  (2) Reasonable attorney's fees.

(d)

  (1) Subject to paragraph (2) of this subsection, on or after October 1, 1992, a banking institution shall comply with the requirements in:

    (i) Subsection (a) of this section; or

    (ii) Final regulations adopted by the Federal Reserve Board pursuant to Sec. 269 of Public Law 102-242.

  (2) On or after the date when compliance with the final regulations adopted by the Federal Reserve Board pursuant to Sec. 269 of Public Law 102-242 is mandatory, a banking institution shall comply with the requirements in those final regulations and subsection (a) of this section shall be null and void.

#### Section 5-305

If a deposit in a banking institution is made by and in the name of a minor:

(1) The institution shall hold the money for the exclusive benefit of the minor or that minor's creditors;

(2) The minor may withdraw money from the account; and

(3) A receipt signed by the minor discharges the institution for the withdrawal.

#### Section 5-306

(a) Except as provided in subsection (b) of this section, a banking institution is not required to recognize or take any action on any claim to a deposit or to money or property held by it or contained in a safe-deposit box, if that claim is adverse to the interests of any person who, on its records, appears to be entitled to the deposit, money, or property.

(b) If, in an action to which the adverse claimant is a party, a court order or decree involving a claim to the deposit, money, or property is served on the banking institution, the banking institution may or, if required by the court, shall impound the deposit, money, or property, subject to further order of the court, without any liability on its part to anyone for doing so.

#### Section 5-307

A banking institution is liable to the depositor for the loss of any check that the institution loses or misplaces before the check clears the clearinghouse.

#### Section 5-308

A banking institution may not impose a service charge on any deposit if withdrawals are restricted by law or by any rule or regulation of the Commissioner.

#### Section 5-309

(a) In this section, "payor institution" means a bank, credit union, or savings and loan association by which an item is payable as drawn or accepted.

(b) As to each account of each depositor in a banking institution, the banking institution shall give to the customer, on opening of the account and on any later demand of the customer, written notice of the time after which the funds represented by an item deposited to the account shall be available for withdrawal as of right, for each of the situations where the banking institution:

  (1) Is also the payor institution;

  (2) Is located in the same state as the payor institution; and

  (3) Is located in a different state from that in which the payor institution is located.

(c) The notice shall also state the time after which the funds represented by an item become available for withdrawal as of right where the item is issued by:

  (1) The Maryland State Government or any agency thereof;

  (2) The United States Treasury; and

  (3) Any agency of the federal government.

(d) The notice shall be printed in type no smaller than elite typewriter characters.

#### Section 5-310

(a) Any checks provided directly or indirectly by a banking institution or trust company for use in connection with a personal checking account shall have the numerical month and year in which the account was opened printed on the face of the checks, except as provided in subsection (b) of this section.

(b) The provisions of subsection (a) of this section shall not apply under certain conditions:

  (1) If an individual personal checking account is closed at a particular bank and a joint personal account is opened at the same bank, that includes one of the customers who previously had the individual personal account, then the numerical month and year printed on the face of the checks shall be the numerical month and year in which the individual personal account was established.

  (2) If a joint personal account is closed at a particular bank and an individual personal account is opened at the same bank by one of the customers who previously was included under the joint account, then the numerical month and year printed on the face of the checks shall be the numerical month and year in which the joint account was established.

  (3) If a customer with an individual personal account or with a joint personal account opens an additional account at the same bank, then the numerical month and year printed on the face of the checks shall be the numerical month and year in which the initial account was established.

  (4) In the case of a personal checking account that is closed and a new personal checking account opened simultaneously on the advice of the bank, the checks for the new account shall have the numerical month and year in which the closed account was originally opened printed on the face of the checks.

  (5) If the closed account was opened prior to July 1, 1987, a date is not required to be printed on the checks.

(c) A check, draft, or order provided on the opening of any personal checking account for use by the customer until printed checks have been prepared is not required to have the numerical month and year in which the account was opened printed on the face of the check, draft, or order.

(d)

  (1) The banking institution and the check printer may not be held liable for unintentional errors in the month and year printed on the face of the checks.

  (2) The customer may not be charged for the reprinting of the checks when the checks are reprinted due to error in the month and year printed on the face of the checks.

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Md. Code Ann., Fin. Inst. (as displayed at mgaleg.maryland.gov, October 16, 2026)