Which Deposit Protection Scheme is right for me, Custodial or Insured?

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In this week’s #AskTDS, we explore which TDS scheme is best for you?

So you’ve chosen to protect your deposit with the government-approved, multi-award-winning Tenancy Deposit Scheme (TDS), but unsure which scheme to use. TDS offers two schemes for you to choose from:

TDS Insured deposit protection scheme is completely free to join. You hold the deposit in your bank account for the duration of the tenancy, accruing the interest but paying a small fee to protect this deposit. When the tenancy comes to an end, you return the deposit to your tenant. If there are any disputes regarding deductions made, TDS provides a free end of tenancy dispute resolution service. TDS Insured is the cheapest pay-as-you-go insured deposit protection scheme available in England and Wales, and the longest-running insured scheme in the UK.

TDS Custodial deposit protection scheme is completely free to join and use. TDS holds the deposit for the duration of the tenancy, and TDS administers the agreed repayment at the end of the tenancy. A  free dispute resolution service is offered should there be any disputes regarding deposit deductionsCustodial is ideal for landlords or agents who don’t want to hold the deposit themselves, and a hassle-free way to protect your deposit.

Here’s a helpful breakdown of the benefits of each scheme to see which would be best for your deposit protection.

InsuredCustodial
No joining feeYesYes
Robust online evidence portal to upload evidence to our impartial adjudicators quickly and securelyYesYes
Pre-populated prescribed information: Making complying with the law quicker and easierYesYes
Multiple users, with different access levels for different usersYesYes
Use stream-lined API to reduce duplication of work and save you timeYesYes
Access to the AI-powered Dispute chatbot that lets users clarify their tenancy deposit dispute and provide advice on how to present their claim effectivelyYesYes
Access to TDS AcademyYesYes
Unlike other schemes, both the agent/landlord and tenant can raise a disputeYesYes
Scheme integration with The DepositaryYesYes
We reward you for resolving disputes over deductions independentlyYes
Direct access to a suite of reports to assist with reconciliationsYes
Edit your own data, such as a spelling mistake of a tenant’s nameYes
NRLA members can access discounts through our Insured scheme by visiting www.nrla.org.uk/services/deposit-protection/depositguardYes
A pre-populated version of the prescribed information: Making complying with the law quicker and easierYes
Tenancy activity function: View a history of tenancy stages and how a dispute case is progressingYes
Tenant changeover function i.e. you can remove tenants from a property instead of starting over altogetherYes
Communications log: See what we have sent, when we sent it, and whereYes
Access to a free Deductions Template guiding you through the processYes

Join today or book a demo to find out how easy it is to switch.

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About TDS:

Tenancy Deposit Scheme (TDS) is a government approved scheme for the protection of tenancy deposits; TDS offers both Insured and Custodial protection and provides fair adjudication for disputes that arise over the tenancy deposits that we protect.

We provide invaluable training in tenancy deposit protection and disputes for agents and landlords through the TDS Academy as well as joining with MOL to provide the Technical Award in Residential Tenancy Deposits.

TDS Insured Scheme: where a TDS member can hold the tenancy deposits as stakeholder during the term of the tenancy.

TDS Custodial Scheme: where TDS hold the deposit for the duration of the tenancy.

TDS Academy: TDS provides property professionals with invaluable training in tenancy deposit protection and tenancy deposit disputes.

TDS can only comment on the process for our scheme, other deposit protection schemes may have a different process/require different steps. Content is correct at the time of writing.

These views are those of the author alone and do not necessarily reflect the view of TDS, its officers and employees.

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