Our current residential lease, in our second year of tenancy, has our landlord holding 3.5 months of rent, I think its illegal?

My original lease required a security deposit in the amount of 1.5 months rent. For our rental extention our landlord insisted upon an additional 2 months security deposit. Currently we are in our second year of tenancy, and our landlord has 3.5 months of security in an escrow account.

I understand that Pennsylvania law limits landlords to holding one month of rent during a tenants second + year of tenancy. Can I legally provide my landlord with one month of security to be placed in escrow and have him hold the additional monies in a regular account and label them "last two months rent" and have the landlord hold them in a regular bank account ? Or should the last 2 months rent be held in escrow? Is the correction I suggested legal in Pa? Is our current lease holding 3.5 mths legal?