Chicago security deposit interest (RLTO)
Chicago’s Residential Landlord and Tenant Ordinance requires interest on any security deposit held for more than six months, at a rate the City Comptroller announces every January. The rate has been 0.01% for many years because it tracks the savings rates of Chicago’s largest banks. On a $2,000 deposit that is 20 cents a year.
Print this page for a dated statement showing the rate applied to each year and the statute.
How Chicago deposit interest works
The money is small; the penalty is not. A landlord who fails to pay the interest, or to hold the deposit in a separate federally insured account in Illinois, owes the tenant two times the deposit plus the interest and attorney fees. That is why Chicago landlords increasingly charge a non-refundable "move-in fee" instead of a deposit.
The rules in brief
- Interest is owed only if the deposit is held more than six months. Payment is due within 30 days of each 12-month anniversary.
- The deposit must be kept in a federally insured interest-bearing account in Illinois, separate from the landlord’s funds, and the tenant must be told the bank’s name and address in writing.
- The penalty for not paying interest or mishandling the deposit is two times the deposit plus interest and attorney fees.
- Suburban Cook County has its own ordinance, the Residential Tenant and Landlord Ordinance, with a similar interest requirement. Elsewhere in Illinois the state rule for 25-unit-plus buildings applies.
City of Chicago Department of Finance. Each January, based on the average of the three largest Chicago banks’ savings, money-market and six-month CD rates.
Chicago deposit interest rate history
The calculator uses the rate for each calendar year automatically when the rate field is left at the published figure.
| Year | Rate | Interest on $1,000 for the year |
|---|---|---|
| 2026 | 0.01% | $0.10 |
| 2025 | 0.01% | $0.10 |
| 2024 | 0.01% | $0.10 |
| 2023 | 0.01% | $0.10 |
| 2022 | 0.01% | $0.10 |
| 2021 | 0.01% | $0.10 |
| 2020 | 0.01% | $0.10 |
| 2019 | 0.01% | $0.10 |
| 2018 | 0.01% | $0.10 |
| 2017 | 0.01% | $0.10 |
| 2016 | 0.01% | $0.10 |
| 2015 | 0.01% | $0.10 |
| 2014 | 0.013% | $0.13 |
| 2013 | 0.023% | $0.23 |
| 2012 | 0.057% | $0.57 |
| 2011 | 0.073% | $0.73 |
| 2010 | 0.073% | $0.73 |
Worked examples: one year held
At the current rate, for a deposit paid on 1 January 2025 and returned on 1 January 2026.
| Deposit | Interest-bearing portion | Interest owed |
|---|---|---|
| $1,000.00 | $1,000.00 | $0.10 |
| $1,500.00 | $1,500.00 | $0.15 |
| $2,500.00 | $2,500.00 | $0.25 |
Other Illinois deposit rules
- Maximum deposit: No statutory limit (statewide); local ordinances such as the Chicago RLTO and Cook County RTLO impose their own rules.
- Return deadline: Itemized statement of damages (with paid receipts or estimates) within 30 days after the tenant vacates or the right of possession ends, whichever is later; if no compliant statement is furnished, the full deposit must be returned within 45 days after the tenant vacates. Landlord is not liable if the tenant never supplies a mailing or e-mail address..
- Late fees: No statewide statutory cap or grace period; no statute located. Late fees must be in the lease and reasonable (unenforceable penalty if excessive). The Landlord and Tenant Act (765 ILCS 705) was read in full and contains no late-fee section. The frequently cited '$20 or 20% of monthly rent, whichever is greater' rule is from the Self-Service Storage Facility Act (770 ILCS 95) and does not apply to residential rentals. Chicago (RLTO) and Cook County (RTLO) ordinances impose local caps and grace periods.
Full page: Illinois landlord and tenant rules.
Frequently asked questions
What is the Chicago security deposit interest rate for 2026?
The City Comptroller set the 2026 rate at 0.01%, unchanged for over a decade. It is announced each January on the Department of Finance website.
My landlord never paid deposit interest. What can I claim?
Under RLTO 5-12-080(f), two times the security deposit plus the unpaid interest and attorney fees. Many Chicago tenant disputes turn on this provision rather than on the interest itself.
Does the Chicago rule apply to my building?
Yes unless the building is owner-occupied with six or fewer units, or is another excluded type such as a hotel, a hospital or an employer-provided unit.
Why do Chicago landlords charge move-in fees instead of deposits?
Because the RLTO’s penalties for deposit mistakes are severe and the interest bookkeeping is a nuisance. A move-in fee is not refundable and is not covered by the deposit rules.