Cal. Civ. Code § 2
The lessor shall, within 30 days after the end of each 12 month rental period, pay to the lessee any interest that has accumulated to an amount of $5 or more, by cash or credit to be applied to rent due, except when the lessee is in default under the terms of the lease. The lessor shall pay all interest that has accumulated and remains unpaid, regardless of the amount, upon termination of the tenancy. A lessor who willfully fails or refuses to pay the interest required by this Act shall, upon a finding by a circuit court that he has willfully failed or refused to pay, be liable for an amount equal to the amount of the security deposit, together with court costs and reasonable attorneys fees
Operative Text
The lessor shall, within 30 days after the end of each 12 month rental period, pay to the lessee any interest that has accumulated to an amount of $5 or more, by cash or credit to be applied to rent due, except when the lessee is in default under the terms of the lease. The lessor shall pay all interest that has accumulated and remains unpaid, regardless of the amount, upon termination of the tenancy. A lessor who willfully fails or refuses to pay the interest required by this Act shall, upon a finding by a circuit court that he has willfully failed or refused to pay, be liable for an amount equal to the amount of the security deposit, together with court costs and reasonable attorneys fees.
Under 765 Ill. Comp. Stat. 715 § 2, landlords in Illinois who hold security deposits are required to pay accumulated interest to tenants on a periodic and final basis. If the interest reaches $5 or more at the end of a 12-month rental period, it must be paid within 30 days—either in cash or as a rent credit—unless the tenant is in default. When the tenancy ends, all unpaid interest must be paid regardless of the dollar amount. A landlord who willfully refuses to comply can be held liable by a circuit court for a penalty equal to the full security deposit, plus court costs and reasonable attorneys' fees.
Plain English — not legal advice.
Property owners and managers subject to 765 Ill. Comp. Stat. 715 § 2 generally track interest accumulation on security deposits throughout each 12-month rental period and issue payment—by check or rent credit—within 30 days of that period's end whenever the accumulated amount reaches $5 or more. Operators also ensure that any remaining unpaid interest is disbursed at the close of the tenancy, regardless of how small the balance may be. Maintaining clear records of deposit amounts, applicable interest rates, and payment dates helps demonstrate compliance if a dispute arises in circuit court.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 765 Ill. Comp. Stat. 715 § 2, tenants have a right to receive interest on their security deposits at regular intervals and upon move-out, and a landlord's willful failure to pay can expose them to liability for the full deposit amount plus court costs and attorneys' fees. If a landlord has not paid interest owed, a tenant may have grounds to raise this as a claim or defense in Illinois circuit court. Tenant-rights organizations and legal aid offices familiar with Illinois security deposit law can help explain the options available under this provision.
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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