What is a refundable accommodation deposit (RAD)?

One option to pay for your accommodation is to pay the requested lump sum.

This is called a refundable accommodation deposit or a RAD for short.

You can check the facility’s website to see the maximum RAD you may be asked to pay if you accept an offer of a place.

But paying the lump sum is only one choice.

You can choose to pay the RAD in full or pay a daily accommodation payment (DAP) instead.

The DAP is like paying interest on an outstanding loan or rent. You could also choose to pay a part RAD and part DAP.

Paying for advice from a qualified financial planner may help you to make this choice.

If you choose to pay a RAD, the facility will hold this money on trust for you. The full amount is refunded when you leave or pass away.

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