The Comptroller for the City of Chicago announced the security deposit interest rate for leases written in 2011 earlier this month.
Under Chapter 5-12 of the Municipal Code of Chicago sections 5-12-081 and 5-12-082, the City Comptroller shall calculate and announce on the first business day of each year, the rate of interest to be paid on security deposits. As of January 1, 2011, based on information from the City Comptroller’s Office, the interest rate to be paid on security deposits is 0.073%. The rate is based upon the average of the rates of interest of the following types of accounts at Chase Bank, which is the commercial bank having the most branches located in the City of Chicago: savings account 0.01 percent, insured Money Market 0.01 percent and six-month Certificate of Deposit (based on a deposit of $1,000) 0.20 percent.
The security deposit interest rate for 2011 is 0.073%.
Be careful with this one… The interest rate really is less than 1%, so when you’re doing the math next year, the formula will look like this:
RENT x .0073 = $ amount you owe.
example $1,800 x .0073 = $13.14
CORRECTION: My math is wrong. 0.073% means the multiplication is actually the deposit x .00073 which equals $1.31
It seems a little ridiculous to worry about such a miniscule amount. You gotta love Chicago. Some other tips on security deposits in the City of Chicago from the City Website:
- 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.
- 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.
- 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.
- 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.
- 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)