Uses a standard monthly-compounding annuity formula. Last checked September 2026, see Methodology & Sources.
How DPS maturity is calculated
Each monthly deposit earns interest for the time remaining until maturity, so early instalments earn more than later ones. Gonona BD estimates this using a standard monthly-compounding annuity-due formula, then deducts source tax from the total interest earned, matching how most bank DPS accounts are taxed.
Worked example
Deposit ৳5,000 a month for 5 years (60 instalments) at 7% annual interest. Total deposited over the term is ৳300,000. Because of compounding, the maturity value comes to roughly ৳360,053, meaning gross interest earned is about ৳60,053. After 10% source tax on that interest, net interest comes to around ৳54,048, for a final net maturity value close to ৳354,048.
Why the first deposit earns more than the last
The very first monthly instalment sits in the account for the full 5 years and earns interest the whole time, while the last instalment, paid in the final month, barely earns any interest at all before maturity. This is why a DPS's total interest earned is noticeably less than what the same total amount would earn as a single lump-sum FDR deposited on day one, even at the same interest rate, the money simply hasn't had as much time, on average, to grow.
DPS as a savings habit, tax rebate, and Islamic equivalents
A DPS works well specifically because it's a fixed, recurring commitment, most Bangladeshis set it up with a standing instruction so the monthly amount moves automatically from a current account, removing the temptation to skip a month. Islamic banks offer the same structure as a Mudaraba Savings Scheme, where your monthly deposits are pooled and invested under Shariah-compliant principles. Monthly DPS deposits qualify for statutory tax rebates under NBR's Sixth Schedule, which you can calculate on our Salary & Income Tax Calculator. If you have a lump sum ready to invest, compare returns against a bank FDR or national Sanchayapatra Savings Certificate. For wage earners abroad, explore sending savings via formal banking channels with a 2.5% cash incentive on our Currency & Remittance Calculator.
FAQ
- What happens if I miss a monthly instalment?
- Most banks charge a small penalty fee for a missed instalment and may close the account after several consecutive misses. This calculator assumes every instalment is paid on time.
- Can I withdraw a DPS early?
- Yes, but early closure usually earns a lower "pre-mature" interest rate than the full-term rate, check your bank's specific terms.
- What is a Mudaraba Savings Scheme?
- It's the Islamic-banking equivalent of a DPS, your monthly deposits are invested under Shariah principles and you receive a share of the actual profit rather than a fixed guaranteed rate.
- Is DPS a good option compared to an FDR?
- They serve different purposes, an FDR suits a lump sum you already have, while a DPS builds savings gradually from monthly income. Many people use both alongside each other.
- Why does a DPS earn less interest than an FDR of the same total value?
- Because DPS deposits go in gradually over time, later instalments have much less time to earn interest before maturity than an FDR lump sum deposited all at once on day one.
- Is this DPS calculator free?
- Yes, free to use, with no sign-up required.