From today, there is to be a choice of custodial tenancy deposit schemes with the launch of new services by the Tenancy Deposit Scheme and mydeposits.

TDS Custodial will run alongside the insurance-backed scheme.

Chief executive Steve Harriott said: “As the UK’s leading provider of tenancy deposit protection, we know that landlords and agents in the private rental sector want more choice when it comes to meeting their legal obligations to protect tenancy deposits.

“The launch of TDS Custodial now gives them that choice, providing a fast, free and secure service that removes the hassle from protecting their tenants’ money.

“Those who make the switch to TDS Custodial can expect a quick transfer of the deposit into our scheme at the start of the tenancy, and an even quicker repayment once the tenancy comes to an end. It really couldn’t be simpler.”

The mydeposits custodial scheme will also run alongside the insurance-backed scheme. It is accompanied by the launch of Money Works, a hub of expert guidance aimed at tenants using the new custodial scheme, which will be rolled out to tenants using the existing insurance scheme.

The Deposit Protection Service until now operated the only custodial scheme. DPS also runs an insurance-backed scheme.

Mydeposits has announced that it will also run both an insurance-backed and a custodial scheme, with the latter to be launched some time this month.