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Security Deposit Interest Rates and Rules Under the

City of Chicago Residential Landlord and Tenant Ordinance

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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.

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A landlord must pay interest each year on security deposits (eff. 11-6-86) and prepaid rent (eff. 1-1-92) held more than six months.

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The rate of interest that a landlord must pay is set each year by the City Comptroller (eff. 7-1-97).

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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.

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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.

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In the event of fire, a landlord must return all security deposit and required interest, if any, minus unpaid rent and expenses for damages, within seven days from the date that the tenant provides notice of termination of the rental agreement (eff. 1-1-92).

The rate of interest on security deposits under rental agreements governed for the period from January 1, 2008 through December 31, 2008 shall be: 1.26%.

This rate is based upon the average of the rates of interest, as of December 31, 2007, of the following types of accounts at LaSalle Bank N.A., which is the commercial bank having its main branch located in the City of Chicago and having the largest total asset value: Passbook Savings 0.35 percent; Insured Money Market 0.40 percent; and Six-month Certificate of Deposit (based on a deposit of $2,000) 3.02 percent.

Historical Security Deposit Interest Rates:

Current rate - January 1, 2008 through December 31, 2008

1.26%

January 1, 2007 through December 31, 2007

1.68%

January 1, 2006 through December 31, 2006

1.71%

January 1, 2005 through December 31,2005

1.01%

January 1, 2004 through December 31,2004

0.42 %

January 1, 2003 through December 31, 2003

0.52 %

January 1, 2002 through December 31, 2002:

0.83 %

January 1, 2001 through December 31, 2001:

3.10 %

January 1, 2000 through December 31, 2000:

2.71 %

January 1, 1999 through December 31, 1999:

2.63 %

January 1, 1998 through December 31, 1998:

3.38 %

July 1, 1997 through December 31, 1997:

3.42 %

Before July 1, 1997:

5.00 %