Chicago Security Deposit Interest Calculator (2026)
Chicago has its own rule on top of Illinois's. Current rate: 0.01% for 2026 (set each January).
Who Chicago's rule covers
Most Chicago rentals under the Residential Landlord and Tenant Ordinance (RLTO). The most common exemption is an owner-occupied building with six or fewer units. Unlike Illinois's state law, there is no 25-unit threshold.This rate is published each year — confirm the current year's figure with the cited source before relying on it.
Interest owed to tenant
$0.48
- Time held
- 2.38 yrs
- Total to return
- $2,000.48
Chicago, Illinois rule
Chicago's RLTO requires interest on security deposits held more than six months, at a rate the City Comptroller sets each year — 0.01% for 2026. The amount is tiny, but the penalty isn't: a violation lets the tenant recover two times the deposit plus interest. Leases must also include the city's interest-rate rider.
When paid: For deposits held more than six months: within 30 days after the end of each 12-month rental period, in cash or as a credit against rent.
Last verified October 19, 2026.
Not legal advice. LandlordKit provides general informational tools, not legal advice. Landlord-tenant laws change and vary by city and county. Verify the cited statute and consult a licensed attorney before acting on any result.
How Chicago deposit interest works
Chicago's RLTO requires interest on security deposits held more than six months, at a rate the City Comptroller sets each year — 0.01% for 2026. The amount is tiny, but the penalty isn't: a violation lets the tenant recover two times the deposit plus interest. Leases must also include the city's interest-rate rider.
When it must be paid: For deposits held more than six months: within 30 days after the end of each 12-month rental period, in cash or as a credit against rent.
Penalty for getting it wrong
Two times the security deposit plus interest for violations (RLTO § 5-12-080(f)), plus attorney's fees.Worked example
A $1,500.00 deposit held 1 year at 0.01% earns $0.15 in interest. Rates reset every year, so confirm the current figure with the city source below before paying.Last verified October 19, 2026.
Chicago security deposit interest FAQ
Is the Chicago deposit interest rate really 0.01%?+
Yes — the City Comptroller set it at 0.01% for 2026, based on Chase savings and CD rates. On a $1,500 deposit that's 15 cents a year. The reason to get it right anyway is the penalty: a violation can cost two times the deposit plus interest.
Does the Chicago RLTO apply to my two-flat?+
Owner-occupied buildings with six or fewer units are generally exempt from the RLTO. If you don't live in the building, or it has seven or more units, assume the RLTO applies.
How is Chicago different from the Illinois state rule?+
Illinois's Security Deposit Interest Act only covers buildings with 25 or more units. Chicago's RLTO has no such threshold, so far more Chicago landlords owe interest — at the city's rate, with a required lease rider.