What context can I use each word in?
Learn when and how to use these words with these examples!
prepayment
Example
The hotel requires a prepayment of 50% of the total cost to confirm the reservation. [prepayment: noun]
Example
I prepay my phone bill every month to avoid late fees. [prepay: verb]
deposit
Example
I had to put down a deposit of $500 to rent the apartment. [deposit: noun]
Example
She deposited her paycheck into her savings account. [deposit: verb]
Good things to know
Which word is more common?
Deposit is more commonly used than prepayment in everyday language. Deposit is a versatile term that can be used in various contexts, while prepayment is more specific and is mainly used in industries such as travel and hospitality.
Whatโs the difference in the tone of formality between prepayment and deposit?
Both prepayment and deposit can be used in formal and informal contexts, but deposit is more versatile and can be used in a wider range of situations.
