The residential care facility may differ from place to place.
Providers pay interest with respect to refundable deposits and accommodation bonds:
- at the base interest rate (BIR) for refundable deposit balances and accommodation bond balances, whichever of the following periods comes first:
- between the day after the resident dies or leaves the approved provider's service and the date the refundable deposit balance or accommodation bond balance is refunded, or
- between the day after the resident dies or leaves the approved provider's service and the end of the legislated timeframe for refund of the refundable deposit balance or accommodation bond balance,
- at the maximum permissible interest rate (MPIR) between the end of the legislated time-frame for refund of the refundable deposit balance or accommodation bond balance is repaid.
As of 1 June 2020, base interest rate is 2.50% and the maximum permissible interest rate is 4.89%, these rates do change on a regular basis.
This above is for information purposes only and should not be considered financial advice. You should discuss your personal circumstances with an expert before making any decisions.