Which tenancy deposit scheme should you use?
England and Wales have three authorised schemes: TDS, DPS and mydeposits. Each offers a free custodial option and a paid insured option.
5 min read · Updated 2 August 2026
Overview
England and Wales have three authorised schemes: TDS, DPS and mydeposits. Each offers a free custodial option and a paid insured option.
Custodial vs insured
Custodial schemes hold the deposit for you at no cost; insured schemes let you keep the deposit but charge a premium and require compliant terms.
Switching schemes mid-tenancy
You can move a deposit between schemes, but you must re-issue prescribed information within 30 days of the transfer.
Dispute resolution differences
Each scheme runs its own free adjudication service; the process and evidence requirements are broadly similar across all three.
Choosing the right one
If you manage deposits directly and want to keep the cash, an insured scheme suits sole landlords with a handful of properties.
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This guide is general information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before acting.