Security Deposit Interest Rates
Updated Jan. 5, 2023
Chapter 5-12 of the Chicago Municipal Code hereby gives notice that the rate of interest on security deposits under rental agreements from Jan. 1 through Dec. 31, 2023, shall be:
This rate is based upon the average of the rates of interest, as of Dec. 31, 2022, of the following types of accounts at Chase Bank, which is the commercial bank having the most branches located in the City of Chicago: Savings Account 0.01 percent; and Six-month Certificate of Deposit (based on a deposit of $1,000) 0.01 percent.
- A landlord must give a tenant a receipt for a security deposit that includes the owner's name, the date it was received and a description of the dwelling unit.
- The receipt must be signed by the person accepting the security deposit. A landlord must pay interest each year on security deposits and prepaid rent held more than six months.
- The rate of interest that a landlord must pay is set each year by the City Comptroller. Before a landlord can deduct expenses for damages from the security deposit, the landlord must provide the tenant with an itemized statement of the damages within 30 days of the date the tenant vacates the dwelling unit.
- Within 45 days of the date the tenant vacates the dwelling unit, a landlord must return all security deposit and required interest, if any, minus unpaid rent and expenses for damages. In the event of fire, a landlord must return all security deposit and required interest, if any, minus unpaid rent and expenses for damages.
During December of each year, the city comptroller shall review the status of banks within the city and interest rates on savings accounts, insured money market accounts and six (6) month certificates of deposit at commercial banks located within the city. On the first business day of each year, the city comptroller shall announce the rates of interest, as of the last business day of the prior month, on savings accounts, insured money market accounts and six (6) month certificates of deposit at the commercial bank having the most number of branches located within the city. The rates for money market accounts and for certificates of deposit shall be based on the minimum deposits for such investments. The comptroller shall calculate and announce the average of the three rates. The average of these rates so announced by the comptroller shall be the rate of interest on security deposits under rental agreements governed by this chapter and made or renewed after the most recent announcement.
Rates for previous years: