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Deposit scheme quiz
Pick the right UK tenancy deposit protection scheme in under a minute. 5 quick questions on portfolio size, dispute appetite, cash-flow needs (custodial vs insured) and managing agent set-up, ranked recommendation across DPS, TDS and mydeposits.
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How to pick the right UK tenancy deposit scheme in 2026
Three schemes are authorised by MHCLG to protect tenancy deposits in England: the Deposit Protection Service (DPS), the Tenancy Deposit Scheme (TDS), and mydeposits. All three offer a free custodial product (the scheme holds the deposit on behalf of the landlord) and a paid insured product (the landlord holds the deposit, pays the scheme to insure it). The legal protection is identical across all three: pick on cost, dispute speed and ecosystem rather than on legal effect.
DPS is the original government-owned scheme run by Computershare. Its custodial product is the simplest and the closest to a "default": no monthly fee, no cap on the number of deposits, dispute resolution is included free, and the money sits with the scheme in trust. The insured product runs on a per-deposit fee (currently around £18 + VAT). DPS is the largest of the three by deposit volume and is the safe default for a self-managing landlord with five to twenty tenancies who does not need agent integration or a wider product ecosystem.
TDS (run by The Dispute Service Ltd) is the original 2007 scheme and dominates the letting-agent market through TDS Insured. Letting agents holding client money use TDS Insured because it integrates cleanly with ARLA / Propertymark client-money handling rules. The custodial product (TDS Custodial) is also free for landlords. TDS publishes the fastest reported adjudication SLAs of the three schemes (averaging under 20 working days post-evidence on insured disputes) and offers an arbitration service for landlord-agent disputes.
mydeposits offers a free custodial scheme and an insured scheme, with insured protection paid either per deposit or through a membership that covers a set number of deposits. It suits landlords who want to compare insured pricing at portfolio scale. Check the current fees and dispute process on its website against DPS and TDS before choosing.
The legal requirement is the same regardless of scheme: protect the deposit within 30 days of receipt, serve the prescribed information within the same window, and keep proof of both. Failure costs 1–3× the deposit in court-ordered penalties (Housing Act 2004 s.214) plus a block on most Section 8 possession grounds until put right (Section 21 was abolished on 1 May 2026). The choice of scheme does not change the protection deadline or the penalty exposure: it only changes the cash-flow mechanic (custodial vs insured), the per-deposit cost, and the speed at which a dispute is resolved if one arises.
Switching is permitted at any time. There is no statutory penalty for moving from one authorised scheme to another between tenancies. Moving mid-tenancy requires releasing the deposit from the old scheme, transferring to the new scheme within 30 days, re-serving updated prescribed information, and keeping proof of the chain. This is most often done when a landlord moves from agent-managed to self-managed (TDS Insured → DPS Custodial) or from per-deposit to subscription pricing (DPS → mydeposits) at portfolio scale.
Step by step
How to choose between DPS, TDS and mydeposits
Pick the right UK government-authorised deposit scheme for your portfolio in five questions covering cash flow, scale, agent integration, dispute speed and ecosystem.
- 1
Decide custodial vs insured
Custodial = scheme holds the money, free, simpler at end-of-tenancy. Insured = you hold the money, pay a fee, faster on day one. Self-managing landlords default to custodial; letting agents default to insured.
- 2
Count your tenancies
Under 5 tenancies: pay-per-deposit pricing or free custodial both work. 5–9: at the crossover point. 10+: subscription products like mydeposits annual usually win on price.
- 3
Identify the agent / client-money status
If a letting agent holds client money on your behalf, TDS Insured is the historic and ARLA-aligned default. If you are self-managing, any scheme works.
- 4
Weigh dispute speed
TDS publishes the fastest reported adjudication SLAs. DPS is close. mydeposits is competitive but historically a touch slower at peak.
- 5
Compare the fees at your portfolio size
Insured protection is priced differently by each scheme, per deposit or by membership. Work out the cost for the number of deposits you hold now and expect to hold.
- 6
Run the quiz and compare to your gut
The recommendation is algorithmic and weighted toward cost / speed / scale. Override it if your priorities are different from the dataset’s.
Questions
Frequently asked questions
Which UK deposit scheme is best in 2026?
There is no single best scheme. DPS, mydeposits and TDS are all government-approved and the legal protection is the same. The choice comes down to whether you want custodial or insured protection, the fees, how disputes are handled and whether an agent is involved. The quiz above weighs those for your situation.
What is the difference between custodial and insured deposit protection?
Custodial means the scheme holds the deposit money in trust during the tenancy and refunds the agreed split at the end. It is free for the landlord on all three schemes. Insured means the landlord holds the money in their own account but pays the scheme to underwrite it; the scheme guarantees repayment to the tenant if the landlord cannot. Insured is faster on day one but costs a per-deposit or annual fee.
Can I switch deposit schemes mid-tenancy?
Yes, but do it carefully. The deposit has to stay protected, so register it with the new scheme and give the tenant updated prescribed information within 30 days of the change, before releasing it from the old one where the schemes allow. Keep a record of each step. Many landlords switch between tenancies to avoid the admin.
Which scheme resolves deposit disputes fastest?
Each scheme runs a free dispute service and publishes how it works and how long it normally takes. Timings change with volumes, so check each scheme’s current figures rather than relying on a ranking. Whichever you use, the outcome depends on your evidence: the check-in and check-out reports, photos and receipts.
How much does insured deposit protection cost?
Custodial protection is free. Insured protection is charged by the scheme, either per deposit or through a membership or subscription, and prices change. Compare the current fees on the DPS, mydeposits and TDS websites for the number of deposits you hold.
Is mydeposits as legally valid as DPS or TDS?
Yes. All three schemes are authorised by MHCLG under the Housing Act 2004. The legal protection, the 30-day deadline, the prescribed-information rules and the penalty exposure are identical. The difference is commercial (fees, dispute handling and extra products), not legal.
Do I need to use the same scheme as my letting agent?
No. If you take over from an agent you can keep the deposit where it is or move it to a scheme of your choice, as long as it stays protected throughout and the tenant is given updated prescribed information for the new arrangement. Find out which scheme and which product the agent used before the handover.
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- Track rent and arrears, and draft the notice to get a property back
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Deposit deadline
30 days beginning with the day it is received, not the tenancy start. Miss it and the court must award the tenant 1–3× the deposit, and most possession orders wait until it is put right.
Deposit penalty
A late deposit protection isn’t a slap on the wrist: the court must award the tenant between one and three times the deposit. See the range before they file.
Deposit cap
5 weeks’ rent under £50k annual, 6 weeks’ rent at or above £50k. Over the cap is a banned fee the tenant can recover through the tribunal, with a penalty of up to £5,000. Get the exact lawful figure.
Deposit deduction
Landlords lose deposit disputes by claiming the full replacement cost of a part-worn item. This applies the apportionment adjudicators actually use.
Rent calculator
Before you advertise, see what homes of the same size rent for in the same council, on the Office for National Statistics' own figures, and turn a weekly rent into the calendar-month figure tenancy agreements use.
Pro rata rent
A tenancy almost never starts on the rent day, so the first payment is a part month. There is no legal formula and agreements use two different ones, which is why the same tenancy can produce two different first invoices. See both, and put the working on the demand.
