Definition, Meaning & Synonyms

refundable deposit

noun

/rɪˈfʌndəbl dɪˈpɒzɪt/

Definition

A refundable deposit is a sum of money paid in advance that can be returned to the payer at a later date, typically after fulfilling certain conditions.

Examples

If you cancel your reservation before the deadline, your refundable deposit will be returned.
The landlord asked for a refundable deposit to cover any potential damages to the property.
Your refundable deposit will be credited back to you after the cleaning is completed.

Meaning

This type of deposit is often required in rental agreements or service contracts, ensuring that the party renting or using a service will take care of the property or fulfill their obligations.