What Illinois Deposit Interest Works Out To
Illinois does not publish a single rate — it is the passbook savings rate at the largest commercial bank in Illinois — so there is no fixed table to print. The calculator above takes whatever rate applies to the account and shows what it produces over the holding period. The rate usually appears on the annual statement or the notice naming the bank where the deposit sits.
City Ordinances in Illinois
Chicago
The Chicago RLTO reaches far smaller buildings than the 25-unit state statute, so a Chicago renter is usually covered by the ordinance rather than by 765 ILCS 715. The rate is 0.01% for 2026, set by Chicago City Comptroller, announced on the first business day of each year under Chicago Muni. Code § 5-12-081. Because it is reset annually, the figure here carries its year — the City of Chicago — Security Deposit Interest Rates publishes the current one.
When the Interest Is Never Paid
Deposit interest is one of the more commonly overlooked obligations in residential tenancy, partly because the amounts are small enough that neither side tracks them and partly because it is often owed annually while the deposit itself only comes up at move-out. A tenant who has never received an interest payment or an annual statement has usually not been told the obligation exists.
What tends to matter is documentation rather than argument. The lease records the deposit amount and the date it was paid. Bank records show when it cleared. The statute supplies the rate and the schedule, and the arithmetic follows from those three things. Where a landlord is required to give an annual statement naming the bank and the interest payable, the absence of that statement is itself part of the record.
How Illinois Compares to Nearby States
Deposit interest is one of the sharpest state-line differences in residential tenancy: neighboring states frequently land on opposite sides of it.
The full picture across all 51 jurisdictions is on the deposit interest by state index.
Common Questions About Illinois Deposit Interest
Does my landlord have to pay interest on my security deposit in Illinois?
Yes. Illinois requires it under 765 ILCS 715/1, verified as of September 11, 2026. Buildings with 25 or more units, on deposits held more than 6 months. The rate is the passbook savings rate at the largest commercial bank in Illinois. Within 30 days after the end of each 12-month rental period, once accrued interest reaches $5 or more, in cash or as a credit against rent.
How much interest is a security deposit worth in Illinois?
Illinois does not set a single published percentage — the rate is the passbook savings rate at the largest commercial bank in Illinois, so the amount depends on the account the deposit is held in. The calculator on this page takes a rate and shows what it produces across a range of deposit sizes and holding periods.
When does a Illinois landlord have to pay the interest?
Within 30 days after the end of each 12-month rental period, once accrued interest reaches $5 or more, in cash or as a credit against rent. The deposit itself is subject to a separate deadline: Set by the separate deposit-return statute; the interest obligation runs on the 12-month cycle above.
What is unusual about the Illinois rule?
The 25-unit threshold means most Illinois renters are not covered by the state statute. Chicago is the significant exception — the city ordinance applies to far smaller buildings and sets its own rate.