DPS vs mydeposits vs TDS: Which Deposit Scheme Should Landlords Use in 2026?

Three Schemes, Two Models, One Legal Obligation

Deposits taken in connection with assured tenancies in England must be protected with one of three government-approved schemes within 30 calendar days. The schemes are:

• DPS (Deposit Protection Service) — operated by Computershare Investor Services
• TDS (Tenancy Deposit Scheme) — operated by The Dispute Service Limited
• mydeposits — operated by HF Resolution Limited, backed by the NRLA

Each scheme offers both a custodial and an insured option. The legal obligation is identical regardless of which scheme or model you choose — protect the deposit, serve the Prescribed Information, and comply with the end-of-tenancy process. The differences are in how the money is held and what you pay.

Custodial: Free for Every Landlord

Under the custodial model, you transfer the full deposit to the scheme. It sits in a ring-fenced bank account for the duration of the tenancy, and the scheme releases it at the end based on agreement between you and the tenant (or an adjudicator's decision).

All three schemes offer custodial protection at zero cost to the landlord. The schemes fund themselves through interest earned on the pooled deposits.

This is the default choice for most self-managing landlords with one or two properties. There is no annual fee, no renewal to miss, and no risk that you spend the deposit money by mistake.

Insured: You Keep the Cash, You Pay a Fee

Under the insured model, you hold the deposit in your own bank account and pay the scheme a per-deposit fee or membership to insure it. If a dispute arises, you must transfer the disputed sum to the scheme for adjudication. If you fail to hand over the funds, the scheme pays the tenant and pursues you for the debt.

Current insured pricing (2026):

• DPS Insured — approximately £18.75 for deposits up to £500, or £27.75 for deposits above £500. No annual membership fee.
• TDS Insured — approximately £18.50 to £25.50 per deposit for non-members; NRLA members receive discounts.
• mydeposits Insured — approximately £19 to £27 per deposit; NRLA members receive around 30% off (approximately £18 per deposit).

The insured model suits landlords who want to keep the cash accessible in their own accounts — typically portfolio landlords managing multiple properties where the aggregate deposit amount is significant.

How the Dispute Process Differs

All three schemes operate free Alternative Dispute Resolution (ADR) through paper-based adjudication. Both landlord and tenant must consent to use ADR; if either refuses, the dispute goes to county court.

The practical differences:

• Evidence windows vary slightly — schemes typically give tenants 10–14 days and landlords 14–20 days to submit evidence. Late submissions are rejected regardless of their merit.
• Adjudication speed is broadly similar: decisions typically take 28 to 42 days.
• Under the custodial model, the scheme releases funds directly to whichever party the adjudicator decides in favour of.
• Under the insured model, you must transfer the disputed amount to the scheme when a dispute is raised. If you do not, the scheme pays the tenant from the insurance pool and recovers the money from you.

Adjudicator decisions are binding with no internal scheme appeal. If you think a decision can be challenged, seek legal advice about your options.

Which Scheme Should You Pick?

For a single-property landlord who wants simplicity and zero ongoing cost: any of the three custodial schemes works. DPS tends to have the highest name recognition, which can matter if your tenant wants to verify their deposit is protected. TDS and mydeposits are equally valid.

For a landlord with multiple properties who wants to hold deposits in their own accounts: compare the insured fees against your portfolio size. mydeposits charges per deposit and offers an NRLA member discount; compare current quotes for the full portfolio.

For landlords already in the NRLA: mydeposits and TDS offer member discounts on insured schemes, which can add up across a portfolio.

What does not matter for compliance purposes: the scheme you choose. All three satisfy the Housing Act 2004. Switching between schemes mid-tenancy is allowed but triggers a fresh 30-day clock for the new protection and new Prescribed Information.

Our Tenancy Deposit Protection guide includes a scheme comparison table with current fees and a decision flowchart to match your portfolio size and management style to the right model.

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