Renting

Tenancy Deposit Protection Schemes — TDS, DPS and myDeposits Compared

Every landlord in England and Wales must protect a tenant's deposit in a government-approved scheme within 30 days of receipt. This guide compares the three approved schemes — TDS, DPS, and myDeposits — covering both custodial and insured options.

Published: 1 Jan 2026 · Updated: 1 Mar 2026 · 6 min read

Why Must Deposits Be Protected?

Since the Housing Act 2004, landlords in England and Wales have been required to protect any security deposit received for an assured shorthold tenancy (now superseded by periodic tenancies under the Renters' Rights Act 2025) in a government-approved scheme. The rules remain in place under the new regime.

The requirement exists to ensure tenants can recover their deposit at the end of the tenancy if no legitimate deductions are made, and to provide an independent dispute resolution service if landlord and tenant disagree over deductions.

Key requirements:

Deposit must be protected within **30 days** of receipt
Tenant must receive **prescribed information** within 30 days, detailing which scheme is used and how to retrieve the deposit
Failure to protect on time means the landlord cannot serve a valid possession notice and may owe the tenant **1–3 times the deposit amount** in compensation

Use our [rental deposit calculator](/rental-deposit-calculator) to confirm how much your deposit should be under the legal cap before it is protected.

The Three Government-Approved Schemes

There are three schemes approved by the government for England and Wales. Each offers two types of protection.

1. Tenancy Deposit Scheme (TDS)

TDS is one of the longest-established schemes, operating since 2003. It is particularly popular with letting agents and professional landlords.

**TDS Custodial** — The deposit is held by TDS for the duration of the tenancy. At the end, landlord and tenant agree on any deductions and the remainder is returned. Free to use.

**TDS Insured** — The landlord holds the deposit money but pays a fee for TDS to insure the funds. If there is a dispute, TDS steps in and the insured cover protects the tenant.

Free adjudication service
Online portal for landlords and tenants
Average adjudication time: 28 days
Website: tenancydepositscheme.com

2. Deposit Protection Service (DPS)

The DPS was the first custodial scheme launched in England, introduced in 2007. It is operated by Computershare and is the largest custodial scheme by volume.

**DPS Custodial** — Free to use; DPS holds the money and earns interest on pooled funds (interest is retained by DPS, not the tenant).

**DPS Insured** — Annual membership fee applies; the landlord retains the deposit but the scheme insures the amount.

Operates a Repayment ID system for end-of-tenancy returns
Online-only; no telephone service for routine queries
Website: depositprotection.com

3. myDeposits

myDeposits is operated by Hamilton Fraser and is notable for being the only scheme that also covers deposits paid for **lodger arrangements** and **student halls of residence** in some circumstances.

**myDeposits Custodial** — Free to use; deposit held by myDeposits.

**myDeposits Insured** — Annual fee payable; landlord holds the money.

Offers a dedicated landlord insurance and referencing product alongside deposit protection
Telephone support available
Website: mydeposits.co.uk

Custodial vs Insured — Which Is Better for Tenants?

Feature	Custodial	Insured
Who holds the money	The scheme	The landlord
Risk if landlord goes bankrupt	None — money is ring-fenced	Some risk if landlord delays return
Cost to landlord	Free	Annual fee
Tenant access to funds	Via scheme directly	Must go through landlord first
Best for	Most tenants	Landlords who prefer liquidity

From a tenant's perspective, **custodial protection is generally lower risk**. The money sits outside the landlord's control entirely, so if a landlord becomes insolvent or uncooperative, the tenant can approach the scheme directly to claim the deposit back.

Prescribed Information — What You Should Receive

Within 30 days of your deposit being received, your landlord must give you:

1. The name and contact details of the scheme

2. Your unique deposit protection certificate or reference number

3. Information on what to do if a dispute arises at the end of the tenancy

4. The scheme's leaflet

If you never received this information, you can check whether your deposit is protected by searching any of the three schemes using your address and tenancy start date. All three offer free online checks.

What If the Landlord Doesn't Protect the Deposit?

If the deposit was not protected within 30 days, or if prescribed information was not provided, you can apply to the County Court for a financial penalty. Courts typically award **1–3 times the deposit amount** on top of the deposit itself being returned. The exact multiple depends on how egregiously the landlord failed to comply.

Under the Renters' Rights Act 2025, possession proceedings are now based on specific grounds rather than Section 21. However, an unprotected deposit can still be used as evidence in a broader dispute and may affect the landlord's ability to rely on certain possession grounds in practice.