Does a landlord have to pay interest on a security deposit in Illinois?

Yes. Illinois requires a landlord to pay the tenant interest on a security deposit. Interest required on buildings with 25+ units held 6+ months; Chicago RLTO applies its own rate. The deposit itself must be returned within 45 days of the end of the tenancy. This is 765 ILCS 710/1; 765 ILCS 715/1.

WhatIllinois
Interest payableYes
How it worksInterest required on buildings with 25+ units held 6+ months; Chicago RLTO applies its own rate.
Deadline to return the deposit45 days

Source

765 ILCS 710/1; 765 ILCS 715/1

Read the statute in the Illinois Compiled Statutes (Illinois General Assembly): ilga.gov.

This is a summary of a published statute, not legal advice. Rules change, local ordinances can add to them, and the terms of a specific lease may differ. Check the citation and speak to a lawyer before acting.

How Seayora uses this rule

Seayora computes the deadline this rule sets from the tenancy’s own dates, shows it on the deposit statement, and reminds the landlord before it falls due — so the answer above is not reference material sitting beside the product, it is the rule the product enforces.

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