DPS in Bangladesh: Best Banks, Rates & How to Choose (2026)

Most people in Bangladesh know DPS exists. Few actually understand how to choose one. You pick the wrong bank, lock in for five years at a low rate, miss two installments, and suddenly your plan falls apart. This guide covers how DPS works in Bangladesh, compares current interest and profit rates across leading banks, explains the tax rules most people ignore, and helps you find the right scheme for your actual goals.

What Is DPS in Bangladesh?

A DPS, short for Deposit Pension Scheme, is a recurring deposit product where you commit to depositing a fixed amount every month into a dedicated account. At the end of your chosen tenure, the bank returns your total deposits plus the accumulated interest or profit.

Think of it as forced savings with a reward at the end. DPS does not carry stock-market risk, but it is not completely risk-free. Bank health, inflation, taxes/charges, early encashment rules, and provisional profit-rate changes can affect your actual return.

Any Bangladeshi citizen aged 18 or above can open a DPS by visiting a branch or through digital banking apps. Bangladesh bank accounts come in several forms, and DPS is one of the most structured and goal-oriented options available.

How DPS Works Step by Step

1. Choose your bank and scheme. Different banks offer different DPS products with varying interest rates, minimum installment amounts, and tenures.
2. Pick your monthly installment amount. Minimums vary — Midland Bank starts at BDT 250 per month, while most private banks start from BDT 500.
3. Select your tenure. Options generally range from 3 months to 20 years. Longer tenures usually come with higher rates.
4. Open the DPS account by linking it to your existing savings or current account at the same bank.
5. Pay monthly installments on or before the due date. Most banks auto-debit from your linked account.
6. Receive the maturity amount at the end of your term — your total deposits plus interest, minus applicable taxes, charges, and excise duty, if any.

It’s straightforward. But the details inside each step — especially around rates, tax, and what happens if you miss a payment — are where most people get tripped up.

DPS Interest Rates Comparison (2026)

Rates change frequently, and banks don’t always publicize them clearly. Based on information available from bank websites and financial comparison sources as of late 2025 and 2026, here’s a snapshot. Always verify the current rate directly with the bank before opening any account.

Conventional Bank DPS Rates

Bank	DPS Scheme	Indicative Rate (p.a.)	Min. Monthly	Tenure
One Bank PLC	PENSAVE / EDUSAVE	Up to 11.00%	Verify with bank	5 years+
Midland Bank	MDB Digital DPS	Up to 10.50%	BDT 250	3 months–20 years
EBL (Eastern Bank)	Millionaire Scheme	Verify with bank	From BDT 1,700	Flexible (long-term)
EBL	Secure DPS (with insurance)	Verify with bank	From BDT 500	Verify with bank
BRAC Bank	TARA Flexi DPS	Verify with bank	BDT 500	1–10 years
Prime Bank	Various DPS schemes	~9.00%–9.50%	BDT 500	Flexible
NRBC Bank / Bank Asia	Standard DPS	7.00%–9.00%	Verify with bank	3–10 years
Dutch Bangla Bank	Deposit Plus Scheme	Verify with bank	Verify	3 months–5 years

Note: Rates are indicative based on publicly available data as of late 2025–2026. Verify with each bank’s official website or branch before opening.

The best way to compare is to use the top private banks in Bangladesh as your shortlist, then check each bank’s current deposit rate sheet.

Islamic DPS Profit Rates in Bangladesh

Islamic DPS schemes work differently from conventional ones. Instead of a fixed interest rate, they operate on a Mudaraba profit-sharing model, meaning the bank invests your deposits and shares profits based on a declared provisional rate. There’s no riba (interest) involved.

Al-Arafah Islami Bank PLC published a revised deposit rate circular effective August 1, 2024, which puts their Pension Deposit Scheme (PDS) profit rate at 12.00% per annum and their Installment Term Deposit (ITD) at 11.00% per annum. These are among the highest declared rates in Bangladesh’s Islamic banking segment, though they are provisional and subject to revision.

Islamic Bank	Scheme	Provisional Profit Rate	Min. Monthly
Al-Arafah Islami Bank	Pension Deposit Scheme (PDS)	12.00% (from Aug 2024)	Verify with bank
Al-Arafah Islami Bank	Installment Term Deposit (ITD)	11.00% (from Aug 2024)	Verify with bank
Islami Bank Bangladesh	Mudaraba Pension Scheme (MPS)	Verify with bank	BDT 500
Social Islami Bank	MPS / Savings Scheme	Verify with bank	Verify with bank
EXIM Bank	Islamic DPS	Verify with bank	Verify with bank

Note: Islamic DPS profit rates are provisional, not guaranteed. Confirm current rates with your chosen bank.

For a full comparison of Islamic banking options, the top Islamic banks in Bangladesh guide is a useful reference before you decide.

One practical note: because Islamic DPS profit rates are provisional, your actual return is declared at maturity based on the bank’s investment performance during your tenure. In practice, most reputable Islamic banks have been consistent in meeting or exceeding their declared provisional rates.

DPS vs Fixed Deposit: What’s the Difference?

A lot of people mix these up. Here’s the honest difference:

Feature	DPS	Fixed Deposit (FDR)
How you deposit	Monthly installments	One lump sum
Best for	Save gradually over time	Already have a lump sum
Interest rate	Usually slightly lower	Often slightly higher
Loan against	Up to 90–95% of deposited amount	Up to 90% of FDR value
Tenure	3 months to 20 years	1 month to 5+ years
Minimum	As low as BDT 250/month	Often BDT 50,000+ lump sum

The core insight: if you have BDT 5,000 lying around each month but don’t have a large lump sum, DPS is your tool. If you’ve just received a windfall, maybe a bonus, a business payment, or savings from abroad, an FDR locks that amount in at a potentially higher rate. Some people run both. An FDR for existing savings, a DPS for monthly discipline. That’s actually smart, not complicated.

Tax Rules on DPS Interest in Bangladesh

This is the part most people either don’t know or get wrong. Here’s the current position under Bangladesh’s National Board of Revenue (NBR) rules:

Tax treatment for DPS interest or profit depends on the type and approval status of the scheme. Under current income tax rules, interest or profit from a deposit pension scheme sponsored by the Government or by a scheduled bank with prior government approval may fall outside the regular source-tax deduction rule for savings and fixed deposits.

Because banks may apply tax rules differently based on the specific product, confirm the tax treatment of your DPS directly with the bank or NBR before maturity.

DPS investment rebate: Under the income tax rules for assessment year 2025–26, DPS contributions qualify for investment tax rebate purposes, up to BDT 60,000 per year. If you’re a salaried person filing annual returns, your DPS deposit (capped at BDT 60,000) reduces your total taxable investment base, which can lower the tax you owe overall.

Excise duty is also applied to bank account balances annually based on balance thresholds. This is separate from source tax and applies to the account balance, not just interest.

Early Withdrawal and Missed Installment Rules

This is where DPS plans unravel for many people. Banks don’t advertise the penalties clearly, so read this before signing.

Most banks follow a standard rule: miss three consecutive installments and your account may be force-closed. The amount you receive would be based on premature encashment terms, not maturity terms — meaning a significantly lower effective return.

Early withdrawal penalties (example from Dhaka Bank PLC official terms):

Closure Timing	What You Get
Less than 1 year	Principal only (no interest or profit)
1–2 years	Principal + ~3% interest (savings rate)
2–10 years	Deposits + interest for full completed years at a reduced rate

Some NBFIs like IPDC Finance state no penalty for premature encashment, but the rate applied still reverts to savings-account level. Don’t open a DPS with money you might need within the first year.

Before choosing a bank, it’s worth checking the red, yellow, and green zone classifications for Bangladesh banks. If a bank is under financial stress, your DPS could face delays or complications even if you’re well within your tenure.

Loan Against DPS: The Hidden Liquidity Option

Here’s something most comparison articles skip entirely: you don’t have to break your DPS if you need cash.

Most banks in Bangladesh allow you to take a loan or overdraft against your DPS balance. BRAC Bank’s TARA Flexi DPS offers an overdraft facility of up to 95% of your deposited amount for accounts with more than one year of tenure. Sonali Bank offers up to 90%.

This means if you’ve accumulated BDT 1,00,000 in your DPS and face an emergency, you can borrow up to BDT 90,000–95,000 against it, pay a slightly higher loan interest, and keep your DPS intact with all its maturity benefits.

The loan interest will typically be higher than your DPS rate. But it keeps your savings goal alive while giving you access to funds during genuine emergencies. Most people don’t know this option exists until they’ve already broken their DPS and taken the penalty.

How to Open a DPS Account in Bangladesh

1. Choose your bank and DPS product. Compare rates, minimum installments, and tenure options.
2. Ensure you already have (or open) a savings/current account at that bank. DPS accounts link to a primary account for auto-debit.
3. Gather documents: National ID (NID) or passport, a passport-size photo, your e-TIN (strongly recommended), nominee’s NID/photo, and a utility bill for address proof.
4. Visit the branch or use digital banking if the bank supports online DPS opening. Midland Bank and some others offer this.
5. Fill out the DPS application form. You’ll specify the monthly installment amount, tenure, and nominee details.
6. Make the first installment to activate the account.

For digital-first users, opening a bank account online in Bangladesh is now possible at several banks, and some extend the same process to DPS enrollment.

If you’re an NRB (Non-Resident Bangladeshi) looking to save in Bangladesh while living abroad, some banks offer Probashi DPS options. Businessglobalizer has resources on NRB banking and account management in Bangladesh that are worth reviewing if that applies to you.

How to Choose the Right DPS for You

Don’t just chase the highest rate. Here’s what actually matters:

• Rate vs. tenure: A higher rate for a longer tenure isn’t always better if you need the money before maturity. Be honest about your timeline.
• Bank stability: Do not choose only by advertised rate. Check available financial-health indicators such as Bangladesh Bank updates, credit rating, annual report, NPL condition, and regulatory restrictions before opening DPS. Know the zone before you commit.
• Islamic vs. conventional: If Shariah compliance matters to you, Islamic DPS is your path. Profit rates from reputable Islamic banks are currently competitive with conventional banks, and sometimes exceed them.
• Built-in features: EBL’s Secure DPS includes MetLife ALICO life insurance, meaning if you pass away after just one installment, your nominee still receives the full maturity value. That’s a meaningful difference for a family breadwinner.
• Installment size: Start with what you can sustain. A BDT 1,000/month DPS you maintain for 10 years will outperform a BDT 5,000/month DPS you break after 18 months.
• DPS calculator: Most bank websites offer a maturity calculator. EBL, Prime Bank, and Midland Bank all have them. Use the calculator with your actual numbers before signing anything.

Also check how many DPS accounts you can hold. Most banks allow multiple accounts, though some cap total monthly installments per customer. EBL, for instance, caps total installments at BDT 13,000 per customer across all DPS accounts.

Key Insights

• DPS tax treatment depends on the scheme. Government-sponsored DPS or scheduled-bank DPS with prior government approval may fall outside the regular source-tax rule for savings and fixed deposits. Always confirm the rule for your specific DPS before maturity.
• DPS investments up to BDT 60,000 per year qualify for tax rebate under the income tax rules for FY 2025–26, making DPS doubly useful for salaried taxpayers who file annual returns.
• Missing three consecutive installments triggers automatic closure at most Bangladesh banks, and early closure rates are typically only the savings account rate — around 3% — not the DPS rate you signed up for.
• You can borrow against your DPS balance at most banks, up to 90–95% of what you’ve deposited, without breaking the account. This is a rarely publicized but very useful feature during cash crunches.
• Islamic DPS schemes are competitive. Al-Arafah Islami Bank declared a 12% Pension Deposit Scheme profit rate effective August 2024, one of the highest declared rates available in Bangladesh.
• Bank financial health matters as much as the interest rate. A DPS is a multi-year commitment. Checking Bangladesh Bank’s zone classification before opening can save you significant trouble down the line.
• Longer tenures generally earn higher rates, but only if you can genuinely commit. A 5-year DPS broken at year 2 will pay far less than the advertised rate — often no more than savings account level for the early years.

Frequently Asked Questions

What is DPS in Bangladesh and how does it work?

A DPS (Deposit Pension Scheme) is a monthly recurring deposit plan offered by banks in Bangladesh. You deposit a fixed amount each month for a chosen period, usually 1 to 20 years. At maturity, you receive the total amount deposited plus accumulated interest or profit. Source tax is deducted automatically before the maturity amount is credited to your account.

Which bank gives the highest DPS interest rate in Bangladesh?

As of late 2025 and 2026, Al-Arafah Islami Bank’s Pension Deposit Scheme (PDS) was offering 12% provisional profit per annum, and One Bank’s PENSAVE scheme was offering up to 11% for 5-year tenures. Midland Bank’s Digital DPS was offering up to 7.50%–9.50% p.a. for longer tenors. Rates change, so always verify directly with the bank before opening.

What is the minimum amount for DPS in Bangladesh?

It varies by bank. Midland Bank’s MDB DPS allows a monthly installment of just BDT 250. Most other private banks start from BDT 500 per month. Some specialized DPS products, like EBL’s Millionaire Scheme, start from around BDT 1,700 per month for a target maturity of BDT 1 million.

What happens if I miss a DPS installment in Bangladesh?

Missing one or two installments usually results in a temporary irregular status and your indicative maturity amount may reduce. If you miss three consecutive installments, most banks will automatically close your DPS account and settle at premature encashment rates, which are significantly lower than the agreed DPS rate.

Is DPS interest taxable in Bangladesh?

DPS tax treatment depends on the specific scheme. Interest or profit from a government-sponsored DPS or a scheduled-bank DPS with prior government approval may fall outside the regular source-tax deduction rule for savings and fixed deposits. DPS contributions may also qualify for investment tax rebate, subject to the annual limit and overall tax rebate rules.

What is Islamic DPS in Bangladesh?

Islamic DPS is a Mudaraba-based savings scheme offered by Islamic banks. Instead of a fixed interest rate, the bank shares profits earned from investing your deposits. It’s Shariah-compliant with no riba (interest). Banks like Islami Bank Bangladesh, Al-Arafah Islami Bank, Social Islami Bank, and EXIM Bank offer these products.

Can I take a loan against my DPS?

Yes. Most banks allow you to borrow against your DPS balance. BRAC Bank’s TARA Flexi DPS offers an overdraft of up to 95% of your deposited amount for accounts with over one year of tenure. Sonali Bank offers up to 90%. This lets you access cash in an emergency without breaking the DPS and losing your maturity benefits.

Can I close my DPS before maturity?

You can, but the returns will be significantly lower. If you close within the first year, most banks return only your principal with no interest. Between years 1 and 2, you typically receive interest at roughly the savings account rate (around 3%), not the DPS rate. After that, you may receive accrued interest for completed years at a reduced rate.

Can I open more than one DPS account in Bangladesh?

Yes, most banks allow multiple DPS accounts per customer. However, some set limits on the total monthly installment across all accounts. EBL, for example, caps total DPS installments at BDT 13,000 per customer. Check your bank’s specific policy before opening a second account.

Final Thoughts

A DPS is one of the simplest, lowest-risk savings tools available to anyone in Bangladesh. No market swings, no uncertainty about where your money is. You put in a fixed amount every month, and the bank does the rest. The problem isn’t the product — it’s the decisions around it. Which bank, which tenure, which rate, and whether you’ve actually read the early withdrawal clause.

Before you walk into any branch, know your monthly budget, confirm the bank’s zone classification, get your e-TIN sorted, and use the bank’s own DPS calculator. Those four steps alone will put you ahead of most people opening a DPS account today. Which bank are you leaning toward?