Nursery banks holding fee for 3-4 years

[EdPops]

My DS's nursery has a policy of keeping the initial holding fee you pay to secure a place for the entire full 3 or 4 years a child typically attends for, only returning it once the final invoice is paid. Is this standard where you are?

It's only £300 but multiplied by the amount of parents whose children attend it starts to feel like an interest fee loan for the nursery whilst parents struggle to make ends meet.

Why not return the holding fee once the child officially starts?

standard

I assume it's not just to cover the initial take up but also for you just leaving and not paying the last payment so makes sense it's for the whole period.

As there's a natural turn over of kids, they're the same going in and coming out each year so it's not like it's building up exponentially

Standard

Often knocked off your final bill.

Standard, it came off our final bill. It covers them against the large numbers that withdraw without providing the required notice.

It counteracts some of the losses for those who don't pay the final bill as well as those who don't take up the place in the first place.

It will be to safeguard against people leaving without paying their fees. This happens more than you would think op

Of course, that's what a deposit is for. It will be taken off your final invoice.

Yep standard, also with childminders too. I held deposits untill they left and last bill has been paid in full. Deposits were lost if they did not take up space, left in first 12 weeks of contact or owed me money. Parents signed to say they understood this when signing contracts and paying the deposit.

Totally normal. Without it, far too many parents try to get out of paying the full notice period when they leave. tbh I am surprised it's only £300