landlord

DPS, MyDeposits and TDS: deposit protection schemes compared for landlords

Deposit protection schemes compared: DPS, MyDeposits and TDS, custodial versus insured, the 30-day rule and what GOV.UK says about not protecting.

4 min read
Last reviewed 4 November 2026
By Your Property Check team

Part 1 of 9

The three schemes

General information, not advice. GOV.UK says a landlord in England or Wales must put a tenant's deposit in a government-approved scheme, and names three: the Deposit Protection Service (DPS), MyDeposits and the Tenancy Deposit Scheme (TDS). Scotland and Northern Ireland have separate schemes, which this page does not cover. GOV.UK says the rule applies to assured shorthold tenancies that started after 6 April 2007. We read the pages below on 4 November 2026, and descriptions of each scheme are as they stated them at the time of checking.

Part 2 of 9

Custodial or insured: the real choice

GOV.UK explains the two types:

Custodial: the scheme holds the deposit, and GOV.UK says this is free.
Insured: you or the agent hold the deposit and pay the scheme to insure it.

The type matters more than the provider name, because it decides who holds the money and whether you pay.

Part 3 of 9

Comparison table

Feature	DPS	MyDeposits	TDS
Listed on GOV.UK as an approved scheme	Yes	Yes	Yes
Custodial option	Yes. Its home page says "FREE Custodial deposit protection"	Yes. Its home page says it holds the deposit for the tenancy for free	We could not read its own site
Insured option	Yes. Its home page says "Insured protection for a small fee"	Yes. Its home page says you pay a small fee to protect and hold the deposit	We could not read its own site
Annual membership charges	Its home page says there are none	Not stated on the page we read	Not read
Fee amounts	Not quoted here	Not quoted here	Not quoted here

We do not recommend a scheme or give fee figures. Fees change and differ by provider, so check each scheme's current price before choosing. Scheme descriptions are the schemes' own statements, not independent findings.

Part 4 of 9

The 30-day rule

GOV.UK says you, or your letting agent, must put your tenants' deposit in the scheme within 30 days of getting it. The deposit must be returned within 10 days of you both agreeing how much the tenant will get back. If there is a dispute, the deposit stays protected until it is settled. Under an insured scheme, GOV.UK says you or the agent must give the deposit to the scheme, which holds it during the dispute.

Part 5 of 9

What the rule does and does not cover

Holding deposits do not need protecting, but become protected deposits once the tenant signs.
A valuable item received instead of money, such as a car or watch, does not need to be protected.
Third-party deposits, such as from a rent deposit scheme or a tenant's parents, must still be protected.

Part 6 of 9

What happens if you do not protect it

The GOV.UK page on schemes does not list penalty amounts. GOV.UK's guide to the Renters' Rights Act says the Act will prevent landlords gaining possession if they have not properly protected a tenant's deposit, though landlords can rectify non-compliance, and the restriction does not apply to antisocial behaviour grounds. GOV.UK also says private renting rules changed on 1 May 2026. Check current GOV.UK guidance for any financial penalties before relying on this page, because we have not read a source that states them.

Part 7 of 9

Telling the tenant

The GOV.UK scheme page links to a separate section, "Information you must give to your tenants", which covers what a landlord must tell the tenant once a deposit is protected. We did not read that section, so we do not summarise it. Read it on GOV.UK, and keep a dated record of what you sent and when.

Part 8 of 9

Which should a landlord choose?

There is no single right answer. Think about three things. First, do you want the scheme to hold the deposit (custodial), or to keep it yourself and pay for insurance (insured)? Second, how many tenancies do you manage, and do you use an agent who may already use a scheme? Third, what are the current fees and the dispute process? Read each scheme's own terms and ask your agent which one they use.

Part 9 of 9

If you plan to sell

Keep your scheme certificates and deposit records together, so you can show how each deposit is protected. Our guide to selling a house with tenants and the tenanted property sale guide explain what a sale involves, and the glossary entry on deposit protection schemes gives a short definition. To see what a tenanted home could sell for, our free house valuation gives a range from HM Land Registry sold prices.

This page is general information, not legal advice.

Our take

Choose custodial or insured on purpose, not by default

The real choice is between custodial, where the scheme holds the deposit at no charge, and insured, where you hold it and pay a fee. We think landlords should decide that deliberately, then protect within the 30 days, because missing the deadline is the costly mistake.

Deposits are one of several things a landlord has to keep in order. Our Landlord CertCheck tracks the expiry dates of gas, EICR, EPC, PAT and fire certificates, and your first property is free, then £49.99 a year.

Track certificates

Our opinion, drawn from the facts on this page: not advice and not a forecast. We earn from OfferCheck reports and from introducing sellers to cash buyers, so weigh it with that in mind (see our disclosure). We are not authorised or regulated by the FCA.

Questions, answered

Frequently asked questions

Which deposit protection scheme should a landlord use?

GOV.UK lists three: DPS, MyDeposits and TDS. The choice between custodial and insured protection usually matters more. Check each scheme's current terms and fees, and ask your letting agent which they use.

What is the difference between custodial and insured?

GOV.UK says that in a custodial scheme the scheme holds the deposit for free. In an insured scheme you or the agent hold the deposit and pay the scheme to insure it.

How long do you have to protect a deposit?

GOV.UK says within 30 days of getting it. It must be returned within 10 days of you both agreeing how much the tenant gets back.

What is the penalty for not protecting a deposit?

The GOV.UK scheme page does not list amounts. GOV.UK's guide to the Renters' Rights Act says a landlord who has not properly protected a deposit cannot gain possession, though they can rectify the problem.

Do holding deposits need protecting?

GOV.UK says holding deposits do not need protecting, but they become protected deposits once the tenant signs.

Where this comes from

Sources

Last reviewed 4 November 2026 by the Your Property Check team. This page is general information, not legal, tax or financial advice. For your own situation, speak to a conveyancing solicitor or another qualified professional.