Security deposit interest in Illinois
Verified against 765 ILCS 715/1 (Security Deposit Interest Act) and agency sources on 2026-07-04. Not legal advice.
Illinois requires deposit interest only in specific situations.
- Applies when: landlords of 25 or more residential units (in one building or a complex on contiguous parcels), deposit held more than 6 months
- Rate: Rate equal to the interest paid on minimum-deposit passbook savings accounts by the largest commercial bank headquartered in Illinois as of Dec 31 of the preceding year; published annually
- Current rate: 0.005% (2026)
- Paid: annually, within 30 days after the end of each 12-month rental period (cash or rent credit)
- Statute: 765 ILCS 715/1 (Security Deposit Interest Act) · primary source
2026 state rate 0.005%; 2026 Chicago rate 0.01%. Chicago requires the annual Security Deposit Interest Rate Summary addendum with leases where a deposit is taken.
City ordinances in Illinois
- Chicago (RLTO, Mun. Code §§ 5-12-080, 5-12-081): interest on deposits and prepaid rent held more than 6 months regardless of landlord's portfolio size (owner-occupied buildings of 6 or fewer units exempt); rate set annually by City Comptroller - 0.01% for 2026 (unchanged since 2016); noncompliance = double deposit plus attorney's fees
Security deposit interest calculator
Frequently asked questions
Do landlords have to pay interest on security deposits in Illinois?
Only in certain cases: landlords of 25 or more residential units (in one building or a complex on contiguous parcels), deposit held more than 6 months. Rate equal to the interest paid on minimum-deposit passbook savings accounts by the largest commercial bank headquartered in Illinois as of Dec 31 of the preceding year; published annually (765 ILCS 715/1 (Security Deposit Interest Act)).
What is the Illinois security deposit interest rate for 2026?
0.005%. Rate equal to the interest paid on minimum-deposit passbook savings accounts by the largest commercial bank headquartered in Illinois as of Dec 31 of the preceding year; published annually
When must deposit interest be paid in Illinois?
Annually, within 30 days after the end of each 12-month rental period (cash or rent credit).
Anything else Illinois landlords should know about deposit interest?
2026 state rate 0.005%; 2026 Chicago rate 0.01%. Chicago requires the annual Security Deposit Interest Rate Summary addendum with leases where a deposit is taken.
Deposit interest in other states
All states · Alabama · Alaska · Arizona · Arkansas · California · Colorado · Connecticut · Delaware · District of Columbia · Florida
Related: rent increase rules in Illinois · prorated rent calculator