Chicago Residential Landlord & Tenant Ordinance
Section 5-12-081 Interest rate on security deposits
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.
Commentary
At what rate must the interest be paid on Chicago security deposits?
This Section gives us the formula that, fortunately, someone else (the Chicago Comptroller) works out each year. Then they announce the rate. It is important that landlords figure out which laws, if any, require them to pay interest, and at what rate. For example, a building in Chicago with more than 25 units might have to pay interest at the Illinois state rate, which may at times be higher than the also-applicable Chicago RLTO. Get a calculator.