Custodial and insured tenancy deposit schemes differ in where the money is held. Understanding that distinction helps landlords and tenants know which organisation to contact and what records to keep. It should not be confused with deciding whether a particular tenancy requires protection in the first place.
GOV.UK describes a custodial arrangement as one where the scheme holds the deposit without a charge. With an insured arrangement, the landlord or agent holds the money and pays the scheme to insure it. The government page lists Deposit Protection Service, MyDeposits and Tenancy Deposit Scheme for England and Wales, with separate schemes in Scotland and Northern Ireland.
Check the particular arrangement
Find the protection certificate or confirmation and identify the scheme, the registered deposit and the person or organisation holding it. Read the provider’s current terms rather than assuming that every account or service works identically. Ask the provider to clarify any mismatch between the documents and the money paid.
For a landlord comparing schemes, consider how deposits are registered, how required information is supplied and how records are updated. A convenient online portal is useful administration, but it does not by itself establish that all obligations for the tenancy have been met.
Plan the end of the tenancy
Keep an organised record of the property’s condition and relevant communications throughout the tenancy. If proposing a deduction, explain the reason and supporting evidence so the other party can understand what is being requested. Agreement and disagreement should be recorded clearly rather than left as an ambiguous exchange of messages.
GOV.UK says a deposit must be returned within ten days once both parties agree how much will be repaid. Where there is a dispute, follow the scheme’s process and current instructions about the disputed money and evidence. Check the applicable deadlines directly with the provider.
Do not generalise across tenancies
Deposit requirements depend on the arrangement and jurisdiction, including the changes to private renting in England. Check current official guidance and the relevant scheme before deciding how a particular deposit must be handled. A holding deposit used during an application is also a different issue from the tenancy deposit protected during occupation.
Source: GOV.UK, Deposit protection schemes and landlords, checked 4 November 2026. This explains the two models rather than determining an individual dispute.