For small business owners setting aside earnings and salaried workers preparing for future expenses, fixed deposits offer a way to save money for a set period. Through the bKash app, customers can now open fixed deposits with Eastern Bank and IDLC Finance without visiting a branch or submitting physical paperwork.
Shoma Akter, a resident of Dhaka's Mirpur, left her job to pursue her ambition of running a business. Over the past two years, she has gradually built an online shop specialising in home décor and gift items. Sales during the last two Eid seasons were encouraging, giving her an opportunity to set aside some of the earnings.
She wants to use those savings both to expand the business and to prepare for unexpected setbacks.
"I want to expand the business using its own earnings while preparing for potential business shocks. For this reason, I try to put whatever remains after expenses into short-term fixed deposits," Shoma said.
"After comparing savings schemes across several institutions, opening a fixed deposit through the bKash app seemed the easiest and fastest option. So, I opened two fixed deposits with IDLC Finance through the app, for six-month and one-year terms, without having to submit paperwork, photographs or a national identity card."
For Tahmidul Islam, a sales executive at a private firm in Chattogram, the priority was keeping his savings for a family expense.
For the past two years, he had been saving small amounts each month with a bank through bKash's deposit pension scheme (DPS) service. When the scheme matured, he had no immediate need for the money and began considering how to use it.
"Although I do not need the money right now, I will need some funds next year to help pay for my younger brother's university admission. So, instead of spending the DPS money, I opened a fixed deposit with Eastern Bank directly through the bKash app," Tahmidul said.
The mobile financial service provider recently introduced digital fixed deposit services from Eastern Bank and IDLC Finance in its app, expanding the savings options available to customers. The service allows users to open a fixed deposit from home at a convenient time, without visiting a bank or completing physical paperwork.
Understanding fixed deposits
A fixed deposit, commonly referred to as an FDR or fixed deposit receipt, involves placing a lump sum with a bank or financial institution for a specified period. The money earns interest at the applicable rate during that period.
Unlike a DPS, which involves regular weekly or monthly deposits, a fixed deposit requires the full amount upfront. It is intended for money that can be set aside for a defined period after essential expenses have been met.
Through the bKash app, customers can currently open fixed deposits ranging from Tk10,000 to Tk1 lakh for terms of six or 12 months. Opening the deposit, receiving periodic returns and accessing the funds at maturity can all be handled through the app.
For nearly five years, customers have been able to open weekly and monthly DPS accounts with five banks and one financial institution through bKash. The fixed deposit service adds another option for those looking to save a lump sum.
How to open a fixed deposit through bKash
To begin, select the "Savings" icon on the bKash app's home screen and tap "Open New Savings". Then select "FDR (Fixed Deposit)" from the available savings schemes.
Choose a term of six or 12 months and a deposit amount between Tk10,000 and Tk1 lakh, based on your savings plan. Select your preferred return payment frequency of three or six months.
Next, choose Eastern Bank or IDLC Finance as the deposit institution. You will then be asked whether you want to enable automatic renewal when the deposit matures.
Provide your nominee's details and bKash number, then carefully review the application information. Ensure that your bKash account has sufficient funds and enter your PIN to complete the application.
A confirmation message will be sent once the fixed deposit is activated. At maturity, the principal and applicable returns will be credited to the customer's bKash account and can be cashed out free of charge.