deposit-interest
Security Deposit Interest in Illinois: 0.01% (2025 announced (2026)
Illinois requires landlords of residential buildings with 25 or more units to pay interest on security deposits held 6 months or more; the rate i… Calculator, statute citation, Last Verified date o
Rule verified: 2026-10-28
Quick answer
Yes — Illinois requires landlords to pay interest on qualifying security deposits. Illinois requires landlords of residential buildings with 25 or more units to pay interest on security deposits held 6 months or more; the rate is formula-based (largest Illinois bank passbook rate, effectively 0.01% in recent years - 2025 announced rate 0.01%), paid annually within 30 days after each 12-month rental period. The rule comes from 765 ILCS 715 (Security Deposit Interest Act), §§ 715/1 - 715/3. State statute (official text) · 2026-10-28
Calculator pre-loaded with this state:
The current rate in Illinois
Illinois does not fix the rate in the statute — it moves with a benchmark: 765 ILCS 715/2: rate set annually from the interest paid by the largest Illinois-based commercial bank on minimum-deposit passbook savings accounts as of December 31 of the prior year (2025 announcement: 0.01% APY / 0.005% interest rate); a 0.01% minimum applies in the current low-rate environment per the KSN Law summary..
Because the benchmark resets periodically, always check the current published value before relying on an older figure. Where we have confirmed the current value against the official announcement, the calculator above applies it; where we have not, the calculator says so instead of guessing.
How interest must be paid
Not specified in fetched sources; interest is paid annually (operationally simple interest), see unverified_flags. Paid in cash or as a rent credit within 30 days after the end of each 12-month rental period (765 ILCS 715/1 to 715/3 per KSN Law summary).
Who the law applies to
Residential rental property consisting of 25 or more units; deposits held for 6 months or more; excludes public housing deposits and tenants in default under the lease.
Cities that add their own rules
Chicago: RLTO (Chicago Municipal Code ch. 5-12, §§ 5-12-081/5-12-082) requires annual interest on deposits held more than 6 months in 25+ unit buildings at a rate computed and published by the City Comptroller each year; published rate has been 0.01% in recent years (2026 = 0.01% per Altus Property Partners). Cook County RTLO has its own separately published rate. Local Chicago mechanism confirmed from the City Clerk's official municipal code PDF.
How Illinois compares in the Midwest
| State | Rate | Rule |
|---|---|---|
| Illinois | 0.01% (2025 announced rate; formula-based, near-zero in recent years) | interest required |
| Indiana | — | no statewide requirement |
| Iowa | — | no statewide requirement |
| Kansas | — | no statewide requirement |
| Kentucky | — | no statewide requirement |
| Michigan | — | no statewide requirement |
| Minnesota | 1% per annum | interest required |
| Missouri | — | no statewide requirement |
| Nebraska | — | no statewide requirement |
| North Dakota | accrued interest (no statutory minimum rate located) | interest required |
| Ohio | 5% per annum | interest required |
| South Dakota | — | no statewide requirement |
| Wisconsin | — | no statewide requirement |
The statute behind it
| Field | Value | | --- | --- | --- | | Citation | 765 ILCS 715 (Security Deposit Interest Act), §§ 715/1 - 715/3 | | Official text | www.ilga.gov | | Last verified | 2026-10-28 |
Cross-checked against: KSN Law - 2025 Illinois Security Deposit Interest Rate announcement (law firm; mechanics + 2025 rate fetched 2026-10-28), Chicago City Clerk - Municipal Code Chapter 5-12 PDF (official city document; § 5-12-082 interest rate notification by comptroller), Nair Law - Security and Damage Deposits complaint PDF citing 765 ILCS 715/0.01 et seq..
Statutes get amended. If you are relying on this page — for a move-out, a dispute, or a lease draft — click through to the official text and confirm the current wording.
FAQ
Does Illinois require landlords to pay interest on security deposits?
Yes. Under 765 ILCS 715 (Security Deposit Interest Act), §§ 715/1 - 715/3, qualifying landlords in Illinois must pay interest — currently 0.01% (2025 announced rate; formula-based, near-zero in recent years). Residential rental property consisting of 25 or more units; deposits held for 6 months or more; excludes public housing deposits and tenants in default under the lease.
How is deposit interest calculated in Illinois?
At 0.01% (2025 announced rate; formula-based, near-zero in recent years). Not specified in fetched sources; interest is paid annually (operationally simple interest), see unverified_flags. The calculator at the top of this page applies exactly this rule to your deposit amount and dates.
When do I get the interest?
Paid in cash or as a rent credit within 30 days after the end of each 12-month rental period (765 ILCS 715/1 to 715/3 per KSN Law summary).
Independent second source · 2026-10-28Related guides
- All states: security deposit interest by state · rent increase rules by state
- Tools: deposit interest calculator · rent increase calculator
- Neighboring states: Indiana · Iowa
This page is information, not legal advice — see the full disclaimer.
All deposit-interest
Security Deposit Interest Rules by State (2026)
Security deposit interest rules for all 50 states plus DC: which states require landlords to pay interest, the current statutory rate, payment timing and the exact statute — verified October 2026.
Security Deposit Interest in Alabama: No State Requirement (2026)
Alabama does not require landlords to pay interest on security deposits: Ala. Code § 35-9A-201 caps deposits at one month's periodic rent (with p… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Alaska: No State Requirement (2026)
Alaska Stat. §34.03.070 does not require interest on security deposits — deposits are capped at two months' periodic rent (no cap if monthly rent… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Arizona: No State Requirement (2026)
Arizona A.R.S. sec. 33-1321 contains no interest requirement at all (the word 'interest' does not appear); it caps deposits at 1.5 months' rent, … Calculator, statute citation, Last Verified date o
Security Deposit Interest in Arkansas: No State Requirement (2026)
Arkansas security-deposit law (Security Deposits subchapter, landlords of six or more units) caps deposits at two months' rent and requires retur… Calculator, statute citation, Last Verified date o
Security Deposit Interest in California: Local Rules (2026)
No statewide interest requirement (Cal. Civ. Code §1950.5 is silent on interest); San Francisco, Berkeley and Los Angeles (RSO units) require ann… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Berkeley: 0.9% (Dec 2025 annual) (2026)
Berkeley requires annual interest on security deposits at the 'Berkeley Bank Rate' published by the Rent Board — 0.9% for December 2025 and 0.6% … Current rate, payment rules and the official sourc
Security Deposit Interest in Chicago: 0.01% (2026)
Chicago's RLTO requires annual interest on security deposits in 25+ unit buildings — the City Comptroller publishes the rate each year, and it ha… Current rate, payment rules and the official sourc
Security Deposit Interest in Los Angeles: 3.03% (2026)
Los Angeles requires interest on security deposits for Rent Stabilization Ordinance (RSO) units — the 2026 rate set by the Rent Adjustment Commis… Current rate, payment rules and the official sourc
Security Deposit Interest in San Francisco: 4.2% (2026)
San Francisco requires landlords to pay annual interest on security deposits for rental units covered by the Rent Ordinance — 4.2% for the March … Current rate, payment rules and the official sourc
Security Deposit Interest in Colorado: No State Requirement (2026)
Colorado C.R.S. sec. 38-12-103 requires return of the full deposit within one month (lease may extend to 60 days) with a written itemized stateme… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Connecticut: Not less than the (2026)
Connecticut landlords must pay interest on every security deposit at a rate not less than the annual 'deposit index' announced by the Banking Com… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Delaware: No State Requirement (2026)
Delaware's Residential Landlord-Tenant Code requires security deposits to be held in escrow (25 Del. C. § 5514) but does not require landlords to… Calculator, statute citation, Last Verified date o
Security Deposit Interest in DC: Interest accrued in (2026)
DC housing providers must hold security deposits in an interest-bearing escrow account in the District and return the deposit with interest withi… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Florida: No State Requirement (2026)
Florida does not unconditionally require interest on security deposits: under Fla. Stat. § 83.49 the landlord elects the holding method - if the … Calculator, statute citation, Last Verified date o
Security Deposit Interest in Georgia: No State Requirement (2026)
Georgia does not require landlords to pay interest on security deposits: O.C.G.A. § 44-7-31 requires deposits be held in trust for the tenant and… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Hawaii: No State Requirement (2026)
Hawaii requires no interest on security deposits — HRS §521-44 caps deposits at one month's rent (plus optional pet deposit), declares the deposi… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Idaho: No State Requirement (2026)
Idaho Code §55-320 does not require landlords to pay interest on security deposits; there is no deposit cap, and deposits must be returned within… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Indiana: No State Requirement (2026)
Indiana does not require landlords to pay interest on security deposits; IC 32-31-3 governs deposits (no cap on amount, 45-day return with itemiz… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Iowa: No State Requirement (2026)
Iowa does not require landlords to pay interest on security deposits: any interest earned during the first five years of a tenancy belongs to the… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Kansas: No State Requirement (2026)
Kansas does not require landlords to pay interest on security deposits; K.S.A. 58-2550 caps deposits at 1 month's rent (1.5 furnished, plus 0.5 f… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Kentucky: No State Requirement (2026)
Kentucky does not require landlords to pay interest on security deposits; KRS 383.580 requires deposits to be kept in a separate (not necessarily… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Louisiana: No State Requirement (2026)
Louisiana's Lessee's Deposit Act (La. R.S. 9:3251) requires return within one month with itemization for withheld amounts, but contains no intere… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Maine: No State Requirement (2026)
Maine does not require landlords to pay interest on security deposits for standard residential rentals (14 M.R.S. ch. 710-A contains no interest … Calculator, statute citation, Last Verified date o
Security Deposit Interest in Maryland: greater of 1.5%/year (2026)
Maryland requires landlords to pay simple interest on security deposits of $50 or more: for leases entered into after Jan 1, 2015, the rate is th… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Massachusetts: 5% per annum, or the (2026)
Massachusetts landlords must pay interest on security deposits held one year or longer at 5% per year or the lesser amount actually received from… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Michigan: No State Requirement (2026)
Michigan does not require landlords to pay interest on security deposits; the Security Deposit Act (MCL 554.601 et seq.) caps deposits at 1.5 mon… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Minnesota: 1% per annum (2026)
Minnesota requires landlords to pay 1% per annum simple, non-compounded interest on security deposits, paid with the deposit return within 3 week… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Mississippi: No State Requirement (2026)
Mississippi does not require landlords to pay interest on security deposits: Miss. Code § 89-8-21 defines security deposits and requires return w… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Missouri: No State Requirement (2026)
Missouri does not require interest on security deposits - the statute expressly states that any interest earned on a security deposit is the prop… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Montana: No State Requirement (2026)
Montana's Residential Tenants' Security Deposits act (MCA 70-25-201 et seq., 2025 edition) contains no interest requirement — verified against th… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Nebraska: No State Requirement (2026)
Nebraska's Uniform Landlord Tenant Act (Neb. Rev. Stat. §76-1416) sets a one-month deposit cap (extra pet deposit allowed if tenant keeps an anim… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Nevada: No State Requirement (2026)
Nevada NRS 118A.242 caps security at 3 months' periodic rent (including designated last month's rent), requires itemized accounting within 30 day… Calculator, statute citation, Last Verified date o
Security Deposit Interest in New Hampshire: Interest at the rate (2026)
New Hampshire landlords must return security deposits — plus any interest due on deposits held one year or longer (at the regular savings-account… Calculator, statute citation, Last Verified date o
Security Deposit Interest in New Jersey: Interest actually (2026)
New Jersey landlords must keep security deposits in an interest-bearing account in a New Jersey bank and credit or pay the interest to the tenant… Calculator, statute citation, Last Verified date o
Security Deposit Interest in New Mexico: (to be verified) - (2026)
New Mexico requires interest only in one scenario: under an ANNUAL rental agreement, if the deposit exceeds one month's rent, the owner must pay … Calculator, statute citation, Last Verified date o
Security Deposit Interest in New York: Interest actually (2026)
New York landlords must keep security deposits in trust in an interest-bearing account in a New York bank and pay the tenant the accrued interest… Calculator, statute citation, Last Verified date o
Security Deposit Interest in North Carolina: No State Requirement (2026)
North Carolina does not require landlords to pay interest on security deposits: the Tenant Security Deposit Act (G.S. § 42-50 to § 42-56) only re… Calculator, statute citation, Last Verified date o
Security Deposit Interest in North Dakota: accrued interest (no (2026)
North Dakota REQUIRES interest on security deposits for leases or occupancy of nine months or longer — the deposit plus any accrued interest must… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Ohio: 5% per annum (2026)
Ohio requires landlords to pay 5% per annum interest on the portion of a security deposit exceeding $50 or one month's periodic rent (whichever i… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Oklahoma: No State Requirement (2026)
Oklahoma statute explicitly says the landlord must return the security deposit balance WITHOUT INTEREST within 45 days after termination, deliver… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Oregon: No State Requirement (2026)
Oregon does not require landlords to pay interest on security deposits (ORS 90.300); in Portland, interest is owed to the tenant only if the land… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Pennsylvania: Interest earned in (2026)
Pennsylvania state law (Landlord and Tenant Act of 1951, § 512, 68 P.S. § 250.512) requires landlords to pay interest on a security deposit over … Calculator, statute citation, Last Verified date o
Security Deposit Interest in Rhode Island: No State Requirement (2026)
Rhode Island's Residential Landlord and Tenant Act caps security deposits at one month's rent (R.I. Gen. Laws § 34-18-19) but does not require la… Calculator, statute citation, Last Verified date o
Security Deposit Interest in South Carolina: No State Requirement (2026)
South Carolina does not require landlords to pay interest on security deposits: S.C. Code § 27-40-510 (Residential Landlord and Tenant Act) caps … Calculator, statute citation, Last Verified date o
Security Deposit Interest in South Dakota: No State Requirement (2026)
South Dakota requires no interest on security deposits — SDCL §43-32-6.1 caps residential deposits at one month's rent (larger by mutual agreemen… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Tennessee: No State Requirement (2026)
Tennessee does not require landlords to pay interest on security deposits: T.C.A. § 66-28-301 (URLTA) requires deposits be held in a separate acc… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Texas: No State Requirement (2026)
Texas does not require landlords to pay interest on residential security deposits; Property Code Ch. 92 Subchapter B only mandates return within … Calculator, statute citation, Last Verified date o
Security Deposit Interest in Utah: No State Requirement (2026)
Utah Code Title 57 Chapter 17 (secs. 57-17-1 to 57-17-5) contains no interest requirement: a non-refundable deposit requires written notice of li… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Vermont: No State Requirement (2026)
Vermont law (9 V.S.A. ch. 83 subch. 4, §§ 4461-4463) regulates security deposit return deadlines but contains no requirement that landlords pay i… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Virginia: No State Requirement (2026)
Virginia does not require landlords to pay interest on security deposits: Va. Code § 55.1-1226 caps deposits at 2 months' periodic rent and requi… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Washington: No State Requirement (2026)
Washington does not require landlords to pay security deposit interest to tenants — under RCW 59.18.270 the landlord is entitled to interest earn… Calculator, statute citation, Last Verified date o
Security Deposit Interest in West Virginia: No State Requirement (2026)
West Virginia does not require landlords to pay interest on security deposits: W. Va. Code § 37-6A-2 (Article 6A, Residential Rental Security Dep… Calculator, statute citation, Last Verified date o
Security Deposit Interest in Wisconsin: No State Requirement (2026)
Wisconsin does not require landlords to pay interest on security deposits; deposit rules live in Wis. Stat. ch. 704 and Admin. Code ch. ATCP 134 … Calculator, statute citation, Last Verified date o
Security Deposit Interest in Wyoming: No State Requirement (2026)
Wyoming W.S. 1-21-1208(a) explicitly requires the deposit balance and itemization to be delivered 'without interest' within 30 days after lease t… Calculator, statute citation, Last Verified date o
Related pages
Security Deposit Interest Calculator
Free security deposit interest calculator — pick your state and it applies that state's statutory rate, compounding method and payment rules. Not legal advice.
Rent Increase Rules in New York: NYC Order No. 58, effective (2026)
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Rent Increase Rules in DC: Rent Control Year 2026 (May (2026)
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Rent Increase Rules in Oregon: 9.5% for calendar year 2026 (2026)
Oregon caps annual rent increases statewide at the lesser of 10% or 7% plus the CPI-U West Region change (ORS 90.324), for rental units 15+ years… Calculator, notice rules, statute. Verified 2026-1