What are the Types of Deposit Schemes Available?


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There are three deposit schemes authorized by the government, providing custodial-based or insurance-based protection.

Custodial based deposit protection:

  • The tenancy deposit is given to the custodial scheme to protect for the duration of the tenancy.
  • Any interest gained on the deposit during that period of time is retained by the custodial scheme.
  • At the end of the tenancy, the landlord and the tenant both have to apply for the release of the tenancy deposit, after all agreements have been made about deductions.

Insurance based deposit protection:

  • The landlord or letting agents hold the tenancy deposit and pay a sum of money to protect it.

When the tenancy is over, the landlord or letting agents are free to discuss how much should be returned to the tenant without involving the deposit scheme.


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