Deposits tool · Free, no signup
Deposit Scheme Quiz — TDS vs DPS vs mydeposits (UK)
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.
Do you want the deposit money in your bank account during the tenancy, or held by the scheme?
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 is run by Hamilton Fraser, the same group that owns Total Landlord Insurance, Reposit (deposit-replacement), and Client Money Protect. The custodial scheme is free; the insured scheme runs on either pay-per-deposit or an annual subscription that covers unlimited insured deposits — competitive at portfolio scale (10+ tenancies). The mydeposits ecosystem is the strongest of the three for landlords who want one provider for protection plus insurance plus a deposit-replacement product, and that consolidation can save real money for portfolio landlords running a managed estate.
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 Section 21 block until put right. 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.
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
Consider the wider ecosystem
mydeposits is part of Hamilton Fraser (insurance, Reposit, Client Money Protect). Useful if you want one provider for protection plus insurance plus deposit-replacement at portfolio scale.
- 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.
Frequently asked questions
Which UK deposit scheme is best in 2026?
There is no single best scheme — the legal protection is identical across all three. The right one depends on whether you want custodial or insured, your portfolio size, whether an agent is involved, how much you care about dispute speed, and whether you want a wider product ecosystem. Self-managing landlords with 1–9 tenancies most often choose DPS Custodial. Letting agents most often choose TDS Insured. Portfolio landlords with 10+ tenancies most often choose mydeposits Annual Subscription.
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. You release the deposit from the old scheme, register it with the new scheme within 30 days, and re-serve updated prescribed information. Save proof of the entire chain — a missing link in the audit trail is treated by the court as a fresh protection breach. Most landlords switch between tenancies rather than mid-tenancy because of the admin overhead.
Is TDS or DPS faster for resolving deposit disputes?
TDS publishes the fastest reported adjudication SLAs of the three schemes (averaging under 20 working days post-evidence on insured disputes). DPS is close behind. Both publish quarterly performance data. mydeposits is competitive but historically a touch slower at peak periods. All three resolve standard disputes inside 8 weeks.
What does TDS Insured cost vs DPS Insured?
Both schemes run a per-deposit fee model on insured. As of early 2026 DPS Insured is around £18 + VAT per deposit and TDS Insured is comparable; pricing changes quarterly. mydeposits offers an annual subscription that covers unlimited insured deposits — typically the cheapest option once you cross roughly 10 active tenancies. Always check the live pricing on each scheme’s website before deciding.
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 speed, ecosystem — not legal.
Do I need to use the same scheme as my letting agent?
No. The agent uses a scheme to discharge their statutory duty, but if you switch from agent-managed to self-managed mid-tenancy you can move the deposit to a different scheme of your choice. Most landlords moving from agent-managed to self-managed move from TDS Insured to DPS Custodial because it removes the per-deposit fee and the cash-flow management.
Same numbers, run for every property
Calculator now, compliant portfolio next
This calculator runs in your browser only — we don't save anything you type. Inside LetCompliance the same statutory logic is wired into the workflow: a 0–100 score across 6 statutory areas per property, 8 notice generators with audit-logged tenant delivery, deadline reminders at 90/30/14/7/1 days, and a court-ready evidence pack. 14-day free trial, no card needed.
Start free trialOther tools