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.