Chicago security deposit interest is one aspect of Chicago security deposit law that is regulated by the Chicago Landlord Tenant Ordinance. If a landlord does not pay a tenant interest on the tenant’s security deposit, the tenant can recover a statutory penalty of 2-times the deposit, attorney fees and court costs.
Section 5-12-080 of the Chicago Municipal Code generally regulates Chicago security deposit law: Subsections 5-12-080(c) sets forth the requirement that interest be paid on all security deposits or prepaid rent that is held for more than 6 months. The Chicago security deposit interest law requires that the landlord pay the interest within 30 days of the end of each 12-month rental period by cash or credit applied to rent due.
The Chicago security deposit interest rate is determined by 5-12-081, which states that the City Comptroller shall, on the first business day of each year:
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.
Chicago Security Deposit Interest
The City has disclosed Security Deposit Interest as follows:
If the landlord properly pays interest on the security deposit, but incorrectly calculates the amount, the landlord can cure the miscalculation by paying the tenant the proper amount within 14 days of notification plus a $50 penalty.
If your landlord is stealing your deposit, it is important to get legal help as soon as possible. Click here to schedule a free no-obligation phone consultation with a security deposit attorney.
Photo Credit: Chris Butterworth