DPS vs MyDeposits vs TDS in Wales: Which Deposit Scheme to Choose

Three Schemes, Two Routes Each

Welsh Ministers have authorised three deposit protection schemes to operate in Wales under Section 45 of the Renting Homes (Wales) Act 2016:

• DPS (Deposit Protection Service), operated by Computershare Investor Services PLC
• MyDeposits (MyDeposits Wales), operated by HF Resolution Ltd
• TDS (Tenancy Deposit Scheme), operated by The Dispute Service Ltd

Each scheme offers both a custodial and an insured protection route. The landlord's choice affects how the deposit is held, what it costs, and how disputes are resolved.

Custodial vs Insured

Custodial protection: The landlord transfers the deposit to the scheme, which holds the money in a ring-fenced bank account for the duration of the occupation contract. There is no fee. At the end of the contract, the scheme releases the funds based on both parties' agreement or an adjudicator's decision.

Insured protection: The landlord keeps the deposit in their own bank account and pays the scheme a fee — either per deposit or via an annual membership. The scheme provides insurance-backed protection. If a dispute arises, the landlord must transfer the disputed amount to the scheme before adjudication proceeds. Failure to transfer the funds when required voids the protection.

Practical Comparison

All three schemes are legally equivalent in terms of statutory compliance. Registering a deposit with any one of them satisfies the "initial requirements" under Section 45(2)(a). The differences are operational: portal interface, processing speed, and the insured route pricing model.

Which Route Suits Most Welsh Landlords

For a self-managing landlord with one or two properties, the custodial route with any of the three schemes is the simplest choice:

• No fee to protect the deposit
• The scheme holds the money, removing the risk of accidentally spending funds that belong to the contract-holder
• Dispute resolution is handled directly by the scheme at no cost
• At the end of the contract, the scheme releases funds to the agreed parties

The insured route makes more sense for landlords or agents managing multiple properties who prefer to keep deposits in their own accounts for cash-flow reasons — and who are prepared to manage the compliance exposure of holding someone else's money.

Switching Schemes

There is no legal restriction on switching schemes between contracts. If a new contract-holder moves in under a fresh occupation contract, the landlord can register the new deposit with a different scheme. For an existing contract, keep protection continuous: transfer custodial funds between scheme accounts, or end the old insured protection and establish fresh protection with the new scheme.

The Welsh-Specific Required Information

All three schemes generate a required information pack specific to Wales, reflecting the Renting Homes (Deposit Schemes) (Required Information) (Wales) Regulations 2022 (S.I. 2022/250). When registering a deposit, ensure the scheme knows the property is in Wales — using an English prescribed information template is non-compliant for Welsh occupation contracts.

The Wales deposit protection guide walks through scheme registration step by step and includes a scheme comparison checklist.

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