A DPS (Deposit Pension Scheme) bank refers to a banking service or scheme, often offered by banks like Dhaka Bank, that allows individuals to build a substantial sum of money through small, regular deposits over a set period.
Essentially, a DPS is a type of recurring deposit account specifically designed to act as a savings plan for the future, much like a pension. Customers deposit a fixed amount of money at regular intervals (typically monthly) for a pre-defined term. At the end of the term, the accumulated deposits plus accrued interest are paid out to the depositor. Dhaka Bank DPS, as an example, embodies this concept, encouraging consistent savings habits to create a significant financial resource over time.
Here's a breakdown of the key features:
- Regular Deposits: Requires consistent deposits of a fixed amount, typically monthly.
- Fixed Tenure: The duration of the DPS is pre-determined (e.g., 5 years, 10 years).
- Interest Accumulation: Deposits earn interest, compounding the growth of the savings.
- Lump-Sum Payout: At the end of the tenure, the depositor receives the total accumulated amount (deposits + interest).
- Savings for Future: Designed to create a significant sum for long-term financial goals, such as retirement, education, or a major purchase.
Therefore, "DPS bank" is not a specific bank, but rather a common descriptor for a bank offering a Deposit Pension Scheme. Think of it as referring to a bank that provides a particular type of savings product.
