# Illinois — Security deposit interest requirements by US state — which states make a landlord pay interest on a held deposit, and at what rate, quoted from the statute

For Illinois, interest required is Yes; rate or how it's set is a rate equal to the interest paid by the largest commercial bank, as measured by total assets, having its main banking premises in this State on minimum deposit passbook savings accounts as of December 31 of the calendar year immediately preceding the inception of the rental agreement; condition that triggers the duty is Only where the building or contiguous complex contains 25 or more units, and only on a deposit held more than 6 months; citation is 765 ILCS 715/1 (Security Deposit Interest Act), recorded from its source on 2026-09-02.

- **Jurisdiction:** Illinois _(our reading, not quoted from the source)_
- **Interest required:** Yes _(our reading, not quoted from the source)_
- **Rate or how it's set:** a rate equal to the interest paid by the largest commercial bank, as measured by total assets, having its main banking premises in this State on minimum deposit passbook savings accounts as of December 31 of the calendar year immediately preceding the inception of the rental agreement _(verified: appears in the quote below)_
- **Condition that triggers the duty:** Only where the building or contiguous complex contains 25 or more units, and only on a deposit held more than 6 months _(our reading, not quoted from the source)_
- **Citation:** 765 ILCS 715/1 (Security Deposit Interest Act) _(our reading, not quoted from the source)_

## What the source says

> A lessor of residential real property, containing 25 or more units in either a single building or a complex of buildings located on contiguous parcels of real property, who receives a security deposit from a lessee to secure the payment of rent or compensation for damage to property shall pay interest to the lessee computed from the date of the deposit at a rate equal to the interest paid by the largest commercial bank, as measured by total assets, having its main banking premises in this State on minimum deposit passbook savings accounts as of December 31 of the calendar year immediately preceding the inception of the rental agreement on any deposit held by the lessor for more than 6 months.

## Source

- https://www.ilga.gov/Legislation/ILCS/Articles?ActID=2203&ChapterID=62

Last verified: 2026-09-02. Review by: 2027-03-01.
Part of [Security deposit interest requirements by US state — which states make a landlord pay interest on a held deposit, and at what rate, quoted from the statute](https://referencesource.org/security-deposit-interest-requirements-by-state/).