Illinois Security Deposit Interest Calculator & Escrow Rules
$0.00
Property has 1 units, which is below Illinois's statutory threshold of 25 units required under 765 ILCS 715/1.
Illinois Deposit Interest Laws at a Glance (765 ILCS 715/1)
Paid annually within 30 days of the end of each 12-month rental period, or credited against rent.
| Statutory Interest Mandate | Mandatory under state law |
|---|---|
| Statutory Interest Rate | 1% per year (765 ILCS 715/1 & Chicago RLTO § 5-12-080) |
| Minimum Tenancy Duration | 6 months of continuous tenancy |
| Escrow Account & Banking Rule | Must be held in an escrow account at a federally insured bank located in Illinois. |
| Governing Statute | 765 ILCS 715/1 ↗ |
Related Illinois Rental Compliance Tools
Illinois Deposit Return Deadline Calculator
Calculate exact statutory refund dates, holiday rollovers, and bad-faith penalty multipliers.
Late Payment Caps →Illinois Rent Late Fee & Grace Period Tool
Check mandatory statutory grace periods, percentage caps, and illegal overcharge remedies.
Key Illinois Statutory Nuances & Escrow Case Law
- 25-Unit Statewide Threshold: 765 ILCS 715 applies statewide to landlords managing 25 or more units in a single building or complex.
- Chicago Municipal RLTO (§ 5-12-080): In the City of Chicago, interest is mandatory for ALL residential properties regardless of unit count, set annually by the City Comptroller.
- Strict Chicago Liability: Failure to pay deposit interest in Chicago within 30 days triggers an automatic penalty equal to 2x the deposit amount plus attorney fees.
Chicago 1-Year Lease RLTO Interest Calculation
$2,100
12 months
$21.00
Under Chicago RLTO § 5-12-080, on a $2,100 deposit held for 12 months with a 1.0% statutory rate, the landlord owes $21.00 interest payable within 30 days.
Illinois Security Deposit Interest FAQs
Do Illinois landlords have to pay interest on security deposits?
Under 765 ILCS 715/1, Illinois landlords with 25 or more residential units must pay interest on deposits held for more than 6 months.
What are the security deposit interest rules in Chicago?
Under Chicago RLTO § 5-12-080, landlords of all non-owner-occupied properties must pay annual interest set by the City Comptroller, regardless of building size.
What is the penalty for failing to pay deposit interest in Chicago?
Under RLTO § 5-12-080(f), failure to pay interest triggers a statutory penalty of double the full deposit amount plus court costs and tenant attorney fees.
Can Illinois landlords pay deposit interest as a rent credit?
Yes. State and Chicago municipal law permit landlords to credit accrued interest directly against the tenant rent due for the following month.