How Deposit Protection Schemes Work: DPS, TDS & MyDeposits Explained

Every landlord in England and Wales is legally required to protect your tenancy deposit within 30 days of receiving it. This obligation comes from Section 213 of the Housing Act 2004. There are three government-authorised schemes, and understanding how they differ can make a real difference when it comes to getting your money back.

The Three Schemes

Deposit Protection Service (DPS) is the only custodial scheme. Your landlord sends the money to DPS, who hold it for the duration of the tenancy. At the end, both parties must agree on how it is returned. If there is a dispute, DPS holds the contested amount until their free Alternative Dispute Resolution (ADR) process resolves it.

Tenancy Deposit Scheme (TDS) operates an insured model. Your landlord keeps the deposit but pays an insurance premium to TDS. If there is a dispute, TDS adjudicators review the evidence and make a binding decision. According to TDS statistics, tenants receive some or all of the disputed amount in around 60% of adjudicated cases.

MyDeposits also operates an insured model and is part of the Tenancy Deposit Solutions group. They offer both insured and custodial options for landlords. Their adjudication process works similarly to TDS.

Custodial vs Insured: What It Means for You

With a custodial scheme (DPS), the scheme holds the money. This is generally better for tenants because the landlord cannot withhold your deposit — the scheme controls it. With insured schemes (TDS, MyDeposits), your landlord keeps the money and only pays insurance. If a dispute arises, the scheme can order the landlord to pay, but enforcement can sometimes be slower.

How to Check If Your Deposit Is Protected

You can check each scheme directly: DPS deposit checker, TDS deposit checker, or MyDeposits checker. Your landlord was required to give you the scheme details within 30 days. If they did not, or if your deposit is not found in any scheme, you may be entitled to compensation of 1–3x the deposit amount under Section 214 of the Housing Act 2004 — see our full guide on unprotected deposit claims.

The ADR Process

All three schemes offer free Alternative Dispute Resolution. This is an independent adjudication service where an impartial adjudicator reviews evidence from both sides and makes a binding decision. According to Shelter England, ADR decisions are typically made within 28 days of both parties submitting evidence. You do not need a solicitor to use ADR. For a detailed walkthrough, read our guide to the deposit dispute process and what happens during adjudication.