How to Calculate FDR and DPS Returns in Bangladesh (Interest, Tax and Maturity)
See what your fixed deposit or monthly savings scheme will be worth, with quarterly interest and tax at source, using a free FDR and DPS calculator.
Before you put money in a bank, you want to know what it will become. An FDR (fixed deposit receipt) holds one lump sum for a fixed period, while a DPS (deposit pension scheme) collects a monthly instalment. Both are popular in Bangladesh, but the quoted interest rate alone does not tell you the final amount, because of compounding and tax.
The free FDR and DPS Calculator shows the real picture.
Quick answer
Choose FDR or DPS, enter the amount (the deposit for FDR, the monthly instalment for DPS), the yearly interest rate and the number of years. You see the maturity value, with interest added every quarter and the tax at source shown. Your bank's offer may differ slightly.
FDR and DPS in simple words
- FDR: you deposit a lump sum, for example Tk 5,00,000, for one year or more at a fixed rate. At maturity you receive the deposit plus interest.
- DPS: you save a fixed amount every month, for example Tk 5,000, for a set number of years. At the end you receive the total instalments plus interest.
How the interest is added
Most banks in Bangladesh add interest every quarter (every three months) and let the interest earn interest, which is called quarterly compounding. The calculator assumes this, which is the common practice. It means a stated rate of 8 percent gives a little more than 8 percent over a year.
Tax at source
Banks deduct tax on the interest before they pay you. The usual rate is 10 percent if you have a TIN. The calculator shows this deduction so that you see the amount that really reaches you, not only the gross interest.
How to use the calculator, step by step
- Open the FDR and DPS Calculator.
- Choose FDR or DPS.
- Enter the deposit (FDR) or the monthly instalment (DPS).
- Enter the yearly interest rate offered by the bank.
- Enter the number of years.
- Read the maturity amount, interest earned and tax.
An example to understand it
Suppose you put Tk 1,00,000 in an FDR at 8 percent for one year with quarterly compounding. Each quarter earns 2 percent, which compounds to about 8.24 percent over the year, so the gross interest is roughly Tk 8,243. With 10 percent tax at source, about Tk 824 is deducted, leaving around Tk 7,419 as the interest you receive. The calculator performs exactly this kind of working for your figures.
Comparing offers
Use the calculator to compare banks or schemes fairly:
- Run the same amount and period with each bank's rate.
- Compare the amount after tax, not the headline rate.
- Look at the monthly instalment needed to reach a goal with DPS.
- Ask each bank how often interest is added and whether the rate is fixed.
Things the calculator cannot know
Banks differ in details such as the exact compounding, the treatment of partial periods, early encashment penalties and additional charges like excise duty. Treat the result as an accurate planning figure and confirm the final terms with your bank.
Planning tips
- Match the period to your goal. Money needed in two years should not be locked for five.
- Spread deposits across different dates so that some money is always maturing.
- Keep an emergency fund that you can reach without breaking a deposit.
- Prepare tax documents and keep the interest certificate from the bank. Scan it with the Document Scanner.
Related tools
- Estimate your tax with the Bangladesh Income Tax Calculator.
- Check your arithmetic with the Scientific Calculator.
Privacy
The calculation runs in your browser. Your amounts are not sent anywhere or stored.
FDR or DPS: which suits you?
The right choice depends on how your money arrives and when you need it:
| If you... | Consider |
|---|---|
| Have a lump sum you do not need for a while | FDR |
| Earn a regular monthly income and want to build a fund | DPS |
| Want to receive interest regularly | An FDR with interest paid out, if your bank offers it |
| Might need money within a year | A shorter term or a savings account |
Questions to ask your bank
Interest rates are only part of the picture. Before you commit, ask:
- What is the interest rate and is it fixed for the whole term?
- How often is interest compounded or paid?
- What happens if I withdraw early? Penalties can be significant.
- What tax and charges are deducted? Including excise duty where it applies.
- What happens at maturity? Is it renewed automatically?
- Can I take a loan against the deposit?
A worked DPS example
Suppose you deposit Tk 5,000 a month for 5 years at 8 percent, with quarterly compounding. You deposit Tk 3,00,000 in total. Because each instalment earns interest for a different length of time, the maturity amount is higher than the deposits by interest of roughly a few tens of thousands of taka before tax. Run the same numbers in the calculator with different rates and terms to see the difference and plan your target.
Spreading deposits
A common approach is to open several smaller deposits on different dates, sometimes called laddering. When one matures you can use the money or renew it at the new rate, and you are never forced to break a large deposit for a small need.
Beyond bank deposits
Inflation reduces what a fixed amount buys. A deposit that pays 8 percent when prices rise 9 percent loses buying power. Compare options and consider your goals, timeline and risk tolerance, or speak to a qualified adviser, and read about compound interest to understand growth.
Quick checklist
- Compare at least three banks.
- Use the same amount and term for each.
- Compare the amount after tax.
- Check early withdrawal rules.
- Keep the deposit receipt safe, scanned and backed up.
Frequently asked questions
How often is interest added? This tool assumes quarterly compounding, as is common. Ask your bank for its exact terms.
What tax is deducted? Banks deduct tax on interest before paying you. It is usually 10 percent if you have a TIN.
What is the difference between FDR and DPS? FDR is a lump sum deposit; DPS is a monthly instalment scheme.
Will my bank give exactly this figure? It may differ slightly, so confirm with the bank.
Is it free? Yes.
Which is better, FDR or DPS? Neither is better in general. FDR suits a lump sum; DPS suits regular saving.
Is the tax deduction final? Banks deduct tax on interest at source. Check with your adviser how it appears in your return.
Does early withdrawal reduce interest? Usually yes. Confirm the rule with your bank.
Do all banks compound quarterly? Many do, but check your bank's terms.
Is the interest rate fixed? Often yes for FDR, but confirm with the bank for your product.
Next step
Open the FDR and DPS Calculator below and see what your savings will really grow to.
