When Your Illinois Landlord Owes You Deposit Interest
Your landlord has been sitting on your deposit for months — maybe years. In Illinois, that money earns interest, and it belongs to you. Interest is owed only by a landlord letting 25 or more units in a single building or a contiguous complex, and only on a deposit held for more than 6 months (765 ILCS 715/1).
Illinois landlords must pay a variable annual interest on security deposits under 765 ILCS 710/1. Interest is owed only by a landlord letting 25 or more units in a single building or a contiguous complex, and only on a deposit held for more than 6 months (765 ILCS 715/1).
•Your Money
How Much Interest Are You Owed?
The math is straightforward. Multiply your deposit by the annual rate, then by the number of years your landlord held it.
That is money your landlord collected from you, earned interest on (or should have), and must pay back. It does not matter whether they actually put it in an interest-bearing account — the obligation exists regardless.
•Take Action
How to Demand Your Interest
- Calculate the amount. Take your deposit, multiply by a variable, multiply by the number of years held. Round to the nearest cent.
- Send a written demand. Email or certified mail to your landlord. State the deposit amount, the period held, the applicable rate under 765 ILCS 710/1, and the total interest owed. Give them 14 days to respond.
- Keep records. Save your lease, any deposit receipts, move-in/move-out dates, and a copy of your demand letter. You will need these if you go to court.
•Escalation
What If Your Landlord Refuses?
If your landlord ignores your demand or refuses to pay, you have options. Illinois takes deposit violations seriously.
- File in small claims court. In Illinois, small claims court hears claims up to $10,000. Filing costs about $64. No lawyer needed.
- Cite the penalty. Under Illinois Security Deposit Return Act, Illinois courts can award up to 2x the wrongfully withheld amount when a landlord wrongfully withholds deposit money — including interest.
- File before the deadline. You have 5 years from move-out to file a claim in Illinois. Do not wait.
Illinois courts can award up to 2x the wrongfully withheld amount for wrongfully withheld security deposits under Illinois Security Deposit Return Act. The statute of limitations is 5 years.
•Full State Law
Interest is just one piece of Illinois deposit law. Your landlord also has 45 days to return your deposit with an itemized statement of deductions. Read the full Illinois security deposit law breakdown.
More Illinois Guides
●Frequently Asked Questions
Frequently Asked Questions
Does my Illinois landlord have to pay me interest on my security deposit?
It depends. Under 765 ILCS 710/1, Illinois landlords are required to pay a variable annual interest on security deposits. Interest is owed only by a landlord letting 25 or more units in a single building or a contiguous complex, and only on a deposit held for more than 6 months (765 ILCS 715/1). If your tenancy meets that condition, the interest runs on the full deposit for the whole time it is held.
How much deposit interest does my Illinois landlord owe me?
The amount depends on your deposit, the current rate, and how long your landlord held the money. Contact your local housing authority for the current applicable rate. Interest is owed only by a landlord letting 25 or more units in a single building or a contiguous complex, and only on a deposit held for more than 6 months (765 ILCS 715/1).
What if my Illinois landlord refuses to pay deposit interest?
If your landlord refuses to pay the interest owed under 765 ILCS 710/1, you can file a claim in small claims court. In Illinois, small claims court hears claims up to $10,000. Filing costs about $64.
Can my landlord deduct from my deposit before paying interest in Illinois?
Your landlord can make lawful deductions for damage beyond normal wear and tear or unpaid rent, but where interest is owed they still owe it on the deposit for the period they held it. Interest is owed only by a landlord letting 25 or more units in a single building or a contiguous complex, and only on a deposit held for more than 6 months (765 ILCS 715/1). The interest obligation and the return obligation are separate requirements under Illinois law.
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DepositHawk is not a law firm and does not provide legal advice. Information and documents are for informational purposes only. No attorney-client relationship is created. Consult a licensed attorney for advice specific to your situation.