How to open a DPS from home

Saving is essential in everyone’s life. From whatever you earn, setting aside a small amount regularly is the essence of saving. Such savings can be your relief in times of need or strength in times of joy.

Many people are often unsure where to keep their savings. Some feel uncomfortable visiting a bank every month or week to deposit small amounts. So, even with the intention to save, they often fail to do so, and their Deposit Pension Scheme (DPS) remains limited to planning only.

Now, it is possible to save with reputable banks and financial institutions using a mobile phone. For this, you must already have or open a bKash account. Savings can be made under both interest-based and Islamic banking principles.

With a bKash account, you can save from as little as Tk 250 weekly or Tk 500 monthly, and earn market-based interest. At maturity, you can withdraw the amount along with the interest or profit, free of charge.

Using the bKash app, you can open either a weekly or monthly DPS by clicking on the ‘Savings’ option. You must have the intended deposit amount in your account for each week or month. When you select the ‘Savings’ option in the app, the first step will be to choose whether you want a regular DPS or an Islamic DPS.

Next, select whether you want a weekly or monthly plan. Then, choose the term and the institution with which you want to open the DPS, and proceed. After submitting your nominee’s photo and National ID details, the account will be opened. Once the account is activated, you will receive an SMS confirmation.

For the weekly DPS, deposits can range from Tk 250 to Tk 5,000 per week. For the monthly DPS, deposits can range from Tk 500 to Tk 20,000 per month. Weekly DPS terms are range from six months to one year, while monthly DPS terms range from six months to four years.

A DPS cannot be closed within the first three months of starting deposit. After three months, you can apply to close the account at any time and withdraw the accumulated amount.

Weekly DPS deposits can currently be made at BRAC Bank, IDLC Finance, and Dhaka Bank from home. Monthly DPS deposits can be made at BRAC Bank, IDLC Finance, Dhaka Bank, Mutual Trust Bank, and City Bank’s ‘City Islamic’ service. This means DPS can now be opened from the comfort of your home without extra paperwork.

If you open a one-year weekly DPS of Tk 500 in the bKash app, the interest rate is between 8.5 per cent and 9.5 per cent. For a one-year monthly DPS of Tk 1,000, the interest rate is between 9 per cent and 10 per cent. The longer the term, the higher the interest rate. The DPS deposit is automatically deducted from your account on a fixed date every month.

If you deposit Tk 500 per week, after one year IDLC Finance will give you Tk 27,239, with an interest rate of 9.25 per cent. Dhaka Bank will give Tk 27,205, with an interest rate of 9 per cent. Meanwhile, BRAC Bank will give Tk 27,138, with an interest rate of 8.5 per cent.

Through the bKash app, if you deposit Tk 1,000 per month, you can get interest rates between 9 per cent and 10 per cent annually. For monthly deposits of Tk 1,000, IDLC Finance is offering Tk 12,658, with an interest rate of 10 per cent, while Dhaka Bank is offering Tk 12,597, with an interest rate of 9 per cent.

You can also download your savings statement right from the app. This DPS also provides tax benefits. bKash launched its digital savings service in 2021, initially offering monthly DPS through IDLC Finance. Later, four banks joined the programme.

The weekly DPS service was launched in early 2024. Additionally, for savings under Islamic Shariah, bKash has introduced Islamic DPS services in partnership with City Bank and Dhaka Bank. Since its launch, bKash customers have opened over 4 million (40 lakh) DPS accounts with various banks and financial institutions.