TDS vs DPS vs mydeposits: UK deposit schemes explained
If you're renting in England or Wales on an assured shorthold tenancy (AST), your landlord is legally required to put your deposit into one of three government-approved deposit protection schemes. This guide explains how they work, the difference between custodial and insured protection, and how to check which scheme is holding your money.
What is deposit protection?
The Housing Act 2004 introduced tenancy deposit protection for ASTs in England and Wales. The aim is simple: deposits taken at the start of a tenancy must be ring-fenced so that a landlord cannot simply spend them, and so that any end-of-tenancy dispute can be settled by an independent adjudicator rather than left to the courts.
The law requires three things within 30 days of the landlord receiving the deposit:
- the deposit is registered with one of the three approved schemes;
- the tenant is given the “prescribed information” about that scheme;
- the tenant is told how to raise a dispute.
If any of those steps are missed, you may be entitled to compensation. See what to do if your landlord didn't protect your deposit.
Custodial vs insured: the two flavours
Each of the three schemes offers two ways of holding the money. The difference matters because it changes who is physically holding your cash.
Custodial
The landlord transfers the deposit to the scheme, which holds it in a separate account for the duration of the tenancy. At the end of the tenancy, the scheme releases the money to whoever you and the landlord agree. Custodial protection is free to landlords and is generally considered the safest option for tenants.
Insured
The landlord keeps the deposit in their own account but pays the scheme to insure it. If there's a dispute at the end, the landlord must hand the disputed amount to the scheme; if the landlord disappears or fails to pay, the scheme pays the tenant directly and chases the landlord afterwards.
The three schemes
Tenancy Deposit Scheme (TDS)
Run by The Dispute Service Ltd. Offers both custodial and insured products. Widely used by letting agents.
Deposit Protection Service (DPS)
The original custodial-only scheme, now also offering an insured product. Operated by Computershare. Often used by private landlords because the custodial route is free and straightforward.
mydeposits
Run by Hamilton Fraser. Offers both custodial and insured options, popular with professional landlords and agents.
Functionally, the three schemes are very similar — the same legal framework applies, and all of them run a free Alternative Dispute Resolution service. Adjudicators apply the same general principles: deductions must be evidenced, and fair wear and tear cannot be charged for.
How to check which scheme holds your deposit
- Look at the prescribed information your landlord or agent gave you when the tenancy started — the scheme name and a reference number should be on it.
- If you don't have it, you can search each scheme's free online checker using your tenancy address, deposit amount and surname.
- If no scheme has a record of your deposit and 30 days have passed since you paid it, it is almost certainly unprotected — read our guide on what to do next.
Scotland and Northern Ireland
The TDS / DPS / mydeposits framework applies to England and Wales. Scotland and Northern Ireland have their own approved schemes with similar protections but separate operators and slightly different rules. If you rent in Scotland or Northern Ireland, check the gov.scot or NI Direct guidance for the schemes that apply to you.
What this means for you as a tenant
Whichever scheme holds your deposit, the practical advice is the same: keep your own dated evidence of the property's condition at move-in and move-out. The scheme decides disputes on evidence, not on who shouts loudest. A clean PDF of timestamped photos and notes will outperform any verbal disagreement.