In Illinois, how many months must a security deposit be held before a tenant is entitled to interest?

In Illinois, the law stipulates that a landlord is required to pay interest on a security deposit if it is held for six months or longer. This is designed to protect tenants and ensure they receive some compensation for the time their deposit is held, which can be significant depending on how long they reside in a rental property.

Holding a security deposit for less than six months does not obligate the landlord to pay interest. Therefore, if a security deposit has been retained by the landlord for six months or more, the tenant becomes entitled to interest on that deposit. This legal provision emphasizes the importance of transparency and fairness in landlord-tenant relationships regarding the handling of security deposits.