Security deposit interest in Illinois
Yes — Illinois landlords must pay interest on security deposits in buildings of 25 or more units, after 6 months.
Work out what you are owed in Illinois
Enter your deposit and dates to see what Illinois law entitles you to.
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Not legal advice. This is an estimate for informational purposes only and is not legal advice. Security deposit laws change and vary by jurisdiction. Verify with the cited statute or consult a licensed attorney in your state before taking action.
How is the Illinois interest rate set?
Rate = the passbook savings rate paid by the largest commercial bank (by total assets) with its main banking premises in Illinois, as of Dec 31 of the year immediately before the lease started. Rate is fixed for the tenancy, not reset annually. Landlord must look this up; no state agency publishes it.
What does Illinois law actually say?
Illinois requires interest on residential security deposits only where the lessor owns 25 or more units in a single building or a complex on contiguous parcels, and only where the deposit is held more than 6 months. Interest runs from the date of deposit. The rate is the passbook savings rate of the largest Illinois commercial bank as of December 31 before the lease began.
Within 30 days after each 12-month rental period the lessor must pay accrued interest of $5 or more in cash or as a rent credit, except when the lessee is in default. All accumulated unpaid interest must be paid on termination regardless of amount. Public housing deposits are excluded.
Chicago has a separate city ordinance that may apply instead.
When must an Illinois landlord return the deposit?
45 days.
Two deadlines. To withhold anything for damage the lessor must furnish an itemised statement with paid receipts within 30 days of the later of the lessee vacating or the right of possession ending. Where an estimate rather than a receipt is given, the receipts must follow within 30 days of that statement. If no statement is furnished, the full deposit must be returned within 45 days of the lessee vacating.
What if your landlord does not comply?
Willful failure or refusal to pay interest, as found by a circuit court, makes the lessor liable for an amount equal to the security deposit, plus court costs and reasonable attorney fees. Where a circuit court finds the lessor refused to supply the itemised statement, supplied it in bad faith, and failed to return the deposit within the time limits, the lessor is liable for twice the amount of the deposit due, plus court costs and reasonable attorney fees.