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Trulia Chica…, Other/Just Looking in Chicago, IL

What is the interest rate for security deposits?

Asked by Trulia Chicago, Chicago, IL Thu Apr 18, 2013

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Best practice is to stay away from security deposits all together if you are a landlord. Taking a non-refundable move in fee will make it more cost effective for a tenant as well as keep the landlord out of legal issues and avoid escrowing SD, paying interest etc...
0 votes Thank Flag Link Thu Apr 18, 2013
The required interest rate to be paid on security deposits for those in Chicago is .023% through December 31, 2013

For those outside of Chicago, the state rate is .005%.

Other municipalities may have a different required interest rate, so make sure you check.
2 votes Thank Flag Link Thu Apr 18, 2013
The amount of interest required to be paid is trivial, but if you, as a landlord, do not pay it, and the tenant sues you, plan on paying back the original security deposit times three.
1 vote Thank Flag Link Thu Apr 18, 2013
Dear Trulia Chicago,

Brendan Ross answered the question correctly. Let me add in Chicago the interest must be paid to the tenant before the anniversary on the lease or the landlord is in violation of the RLTO.

In January of each year the City of Chicago sets the rate for that year.
1 vote Thank Flag Link Thu Apr 18, 2013
Ginson Speich , has a good answer stay away from security deposits
0 votes Thank Flag Link Sat Jun 1, 2013
insignificant.. its an over rated waste of time
0 votes Thank Flag Link Thu Apr 18, 2013
0% is the standard on these.
0 votes Thank Flag Link Thu Apr 18, 2013
. . .and that is illegal.
Flag Sat May 11, 2013
My trust account gets a 0% interest rate. if I put $1000 in I get out $1000.
0 votes Thank Flag Link Thu Apr 18, 2013
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