Newbie question time......
Having previously only rented to friends and family I've never taken a deposit but now I'm branching out a bit I'm going to have to start to do so. it appears to be the case form my reading here and elsewhere that insured schemes are more popular than the custodial scheme by DPS but why? Given the extra fees involved there must be an advantage - the main one I can see being that I'll have more cash in the old bank account.
Would that earn enough interest to pay for the fee involved? No chance.
Could I use it for investment? Sure, but I would be concerned about liquidity in case there was a sudden rush to have them returned.
So, why do you use the insured schemes?