Savings plans explained: DPS and fixed deposits

Royal BB offers two structured ways to grow your savings. Understanding the difference helps you choose the right one.

Deposit Pension Scheme

A DPS is a recurring savings plan. You commit to contributing a fixed amount at regular intervals, and at the end of the term you receive your total contributions plus interest. It suits anyone building savings gradually out of monthly income, and the discipline of a fixed schedule often makes it easier to stick with than saving ad hoc.

Fixed Deposit Receipt

An FDR works differently. You deposit a lump sum once and leave it untouched for an agreed term. In exchange for locking the money away, you earn a higher interest rate than a flexible account would offer. This suits money you know you will not need in the short term.

Which should you choose

If you are saving from monthly income, a DPS fits naturally. If you already have a lump sum set aside and want it to work harder, an FDR usually earns more. Some customers run both at the same time.

Before you commit

Check the term length, whether early cancellation is allowed, the interest rate and any applicable charges. All of this is shown on each plan before you subscribe.