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Interest payable to residents on accommodation bond refunds
If you’ve paid an accommodation bond (more information), you’ll be pleased to know the government has set strict timeframes for providers (more information) to refund your bond balance should you leave your current service.
If you give at least 14 days notice of your departure, your bond balance must be repaid within 14 days of giving that notice. If you notify your provider of your departure more than 14 days before you leave, they must refund your bond balance on the day you leave. If you give no notice of your departure, your bond balance must be repaid within 14 days after leaving the service. In the case of death your bond balance must be repaid 14 days after the provider is shown probate or a letter of administration.
If the provider does not refund your bond balance on the day you leave, you are entitled to interest payments on your bond balance until it is refunded. Interest is payable at two rates:
- The maximum accommodation bond interest rate for residents who enter care in the 1 July to 30 September 2008 quarter is 11.75%.
- The maximum interest rate on overdue payments of the accommodation charge for residents entering into accommodation charge agreements from 20 March 2008 is 8% per annum.
