Chicago, Ill., Mun. Code ch. 5-12 § 5-12-081
Interest rate on security deposits (Chicago Residential Landlord and Tenant Ordinance (RLTO))
Operative Text
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. (Added Coun. J. 5-14-97, p. 45166; Amend Coun. J. 5-14-08, p. 26210, § 25)
Under Chicago, Ill., Mun. Code ch. 5-12 § 5-12-081, the city comptroller sets the interest rate that landlords must pay on residential security deposits each year. Every December, the comptroller reviews savings account, insured money market, and six-month CD rates at the commercial bank with the most branches in Chicago, then announces the average of those three rates on the first business day of the new year. That announced average becomes the required interest rate for security deposits under rental agreements governed by Chapter 5-12 that are made or renewed after the announcement.
Plain English — not legal advice.
Property owners and managers subject to Chicago, Ill., Mun. Code ch. 5-12 § 5-12-081 generally track the city comptroller's annual announcement, made on the first business day of each year, to determine the correct interest rate to apply to security deposits. Compliant operators apply the newly announced rate to any lease made or renewed after that announcement, and keep records showing that the proper rate was credited to tenants' security deposit accounts. Staying current with each year's comptroller announcement is a routine part of managing Chicago residential properties under Chapter 5-12.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Chicago, Ill., Mun. Code ch. 5-12 § 5-12-081 gives tenants the right to have their security deposit earn interest at the rate the city comptroller announces each January, provided the rental agreement is governed by Chapter 5-12 and was made or renewed after the most recent announcement. If a landlord fails to apply the correct rate, tenants may have remedies available under the broader Chicago Residential Landlord and Tenant Ordinance, and tenant-rights organizations in Chicago can explain what those remedies look like in practice. Tenants can also contact the Chicago Department of Housing to learn more about how this provision is administered.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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