DPS Scheme


A.    DPS Scheme:

Savings for future is like a pension you earn over the span of your life. Little drops of savings every month can end up with a stream of relief and benefits after a certain tenure. Deposit Pension Scheme (DPS) is a monthly installment basis savings deposit. It offers a competitive interest rates and installments at affordable reach to the consumers. In this account, a consumer may deposit a certain amount of money each month for a certain period of tenure, and at maturity an agreed amount will be paid to the consumer.


B.    Purpose:

The purpose of DPS, is to save a certain amount of money every month for a certain tenure in a secured location that creates a handsome amount after a certain period of tenure or at maturity. It creates compulsory way of savings for future. The main objective of DPS, to restrict the chances of impulsively spending money and increase the financial preparedness for the secured future.


C.    Benefits:

-  Tax benefit;

-  Interest income;

-  Secured investment;

-  Growth of investment;

-  Quick processing time;

-  Increase savings nature;

-  Flexible installment tenure;

-  Flexible installment amount;

-  Compulsory way of savings;

-  A handsome amount at maturity;

-  Low processing fees & charges;


D.    Some Basic & Common Features:

Financial institutions are offering a wide range of attractive features for the consumers, who wants to invest on a DPS scheme. Following are some basic and common features of DPS scheme offered by most of the Bank & NBFI’s.

-  Guaranteed return;

-  Attractive interest rates;

-  Flexible installment tenure;

-  Flexible installment amount;

-  Auto debit facilities;

-  Advance payment facilities;

-  Loan / overdraft facilities;

-  Pre-mature encashment facilities;

-  Insurance coverage;

-  Minimum documentation;


E.    Installment Amount:

Most of the financial institutions are referring BDT 500.00 or it’s multiple up to BDT 1,00,000.00 will be per installment.


F.    Installment Tenure Parameters:

Consumers may invest their heard earned money on every month installment basis in a DPS scheme for following tenures.

-  1 Year;

-  2 Years;

-  3 Years;

-  5 Years;

-  10 Years;

-  12 Years;

-  18 Years;

-  20 Years;


G.    Interest Rates:

DPS scheme mainly is a competitive interest bearing monthly installment basis deposit product. Most of the financial institutions are offering 5% - 6% of interest rates calculate based on installment amount and installment tenure.


H.    Fees and Charges:

There are few fees & charges may applicable to a DPS scheme. Most common fees & charges are as follows:

-  Account opening fee;

-  Late payment charges;

-  Pre-mature encashment fee;

-  Account closure fee;

-  Other fees & Charges;


I.     DPS Scheme Opening Eligibility Factors:

DPS scheme account opening eligibility depends on many more factors. Most of the financial institutions are considering following eligibility factors before approving any DPS scheme opening application.


       (a)   Who Can Open Account?

              Any individual and/or non-individual bodies with a valid source of income.


       (b)   Age Limit

              Most of the financial institutions are maintaining minimum 18 years age limit for the individual consumers.


       (c)   Professional Experience

There is no minimum professional experience required to operate a DPS scheme in any financial institution.


       (d)   Minimum Monthly Income

There is no minimum monthly income level to operate a DPS scheme in any financial institution.


       (e)   Proof of Identity

To open a DPS scheme every individual and/or non-individual bodies have to provide proof of identity with supportive documents in accordance of respective Bank and applicable law of the land.


J.    Things to Consider Before Applying to Open a DPS Scheme:

Before applying to open a DPS scheme account, consumers should consider the following things.

-  Interest rates;

-  Fee & charges;

-  Installment tenure;

-  Installment amount;

-  Loan / overdraft facilities;

-  Pre mature encashment facilities;

-  Life insurance facilities;

-  Required documents list;

-  Compare all financers rates & features;


K.    Required Documents:

To open a DPS scheme account there are various types of documents are required. Proper documentation is the only possible way to open an account. Most of the financial institutions are considering similar guidelines in respect to the documents required. A generic list of such documents has been provided below:

-  Complete account opening form;

-  Nominee;

-  Introducer;

-  e-TIN certificate;

-  Photograph (if individual);

-  Proof of age (if individual);

-  Proof of identity (if individual);

-  Proof of income (if individual);

-  Proof of address (if individual);

-  Proof of nationality (if individual);

-  Meeting Minutes (if non-individual);

-  Proof of business identity (if non-individual);

-  Valid permission / license (if non-individual);