The Housing Act 2004 (HA 2004) imposes a requirement upon landlords to deal with deposits taken in respect of assured shorthold tenancies in accordance with schemes authorised under it (HA 2004, s 213(1)). There are two schemes: the custodial scheme and the insurance scheme (HA 2004, s 212(8) and HA 2004, Sch 10, paras 1(2), 4). In the case of the former, the deposit is paid into an account held by a scheme administrator, while in the latter, the landlord retains it but gives an undertaking to the administrator to return, who in turn maintains a policy of insurance in the event that the landlord fails to do so. This Q&A does not consider the penalties for failing to comply with those requirements (HA 2004, s 214) or the prohibition upon the landlord serving a section 21 notice (section 21 of the Housing Act 1988) for