The 30-day rule
Any assured shorthold tenancy deposit in England must be protected in a government-authorised scheme within 30 calendar days of receipt:
You must also serve prescribed information within the same window.
Custodial vs insured
Custodial: you send the deposit to the scheme; it holds the money until the end of the tenancy. Insured: you keep the money but pay a fee and register with the scheme. Both are valid if the scheme is authorised.
Prescribed information
You must give tenants specific details: amount protected, scheme name and contact, how to apply for release, and what happens at the end of the tenancy. Use each scheme’s template to avoid omissions.
If you get it wrong
Courts can order repayment of 1× to 3× the deposit as a penalty. You also cannot serve a valid Section 21 until the deposit is returned or a court penalty is paid and prescribed information rectified (seek legal advice on your case).
End of tenancy
Agree deductions in writing where possible. If you disagree, use the scheme’s free dispute resolution, adjudicators decide based on evidence.
Deeper comparison
Full deposit protection guide → · Never miss a 30-day deadline →
DPS vs TDS vs mydeposits — scheme comparison
All three are government-authorised. The choice comes down to whether you want to hold the money yourself or hand it to the scheme.
| Scheme | Type available | Custodial fee | Insured fee (approx.) | Dispute process |
|---|---|---|---|---|
| DPS (Deposit Protection Service) | Custodial + insured | Free | ~0.6% of deposit | Online ADR, typically 6–8 weeks |
| TDS (Tenancy Deposit Scheme) | Custodial + insured | Free | ~£23–30/year | Online ADR, Ombudsman escalation |
| mydeposits | Insured only | — | ~£25–35 flat | Online ADR, TPAS |
Custodial: The scheme holds the deposit. Free, no default risk, easiest for landlords with one or two properties.
Insured: You hold the deposit funds and pay a fee. Useful for landlords who prefer to retain the cash balance, e.g. for liquidity across a larger portfolio.
ADR culture: All three use adjudicators not courts for disputes. You need evidence — check-in / check-out inventory, photos, written communications. Without evidence, you are unlikely to win deductions.
Recommendation: For most individual landlords, custodial DPS or TDS custodial is the lowest-friction option. For agents managing many deposits, insured schemes reduce client money exposure.
📦 Free — First-Day Tenant Document Pack Checklist (England 2026)
Every document a UK landlord must give a new tenant on day one — with the statute, the deadline and the evidence rule for each.
- Gas Safety, EICR, EPC, Deposit Prescribed Information, How to Rent
- RRA Information Sheet (31 May 2026 duty)
- Tenant Privacy Notice (UK GDPR)
- Tribunal-grade service-proof checklist
Frequently asked questions
How long do landlords have to protect a tenancy deposit?
For assured shorthold tenancies in England, you must protect the deposit in an approved scheme and serve Prescribed Information within 30 days of receipt. Late protection still exposes you to penalties and can block Section 21.
Which deposit scheme should a landlord choose?
DPS, TDS and mydeposits are all valid. Custodial schemes hold the money for free; insured schemes let you hold funds for a fee. Pick based on whether you prefer simplicity or to retain the cash balance.
What is the penalty for not protecting a deposit?
A court can order you to repay between 1 and 3 times the deposit amount to the tenant. Failing to protect a deposit also blocks a Section 8 possession claim until the deposit is returned or protected.
What is the maximum deposit a landlord can charge in England?
Under the Tenant Fees Act 2019, the maximum deposit is 5 weeks' rent if annual rent is under £50,000, or 6 weeks' rent if annual rent is £50,000 or more. Charging more than this is a prohibited payment.
What is Prescribed Information and when must it be served?
Prescribed Information is a document (provided by the deposit scheme) that tells the tenant which scheme holds their deposit, how to reclaim it, and how to raise a dispute. It must be served within 30 days of receiving the deposit, at the same time as deposit protection.
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