Tamilnad Mercantile Bank FD Interest Rates — Complete Guide & Rate Chart

Key Takeaways
 

• Tamilnad Mercantile Bank FD offers flexible tenures ranging from 7 days to 10 years.
   
• Senior citizens enjoy higher interest rates for better returns.
   
• It provides a safe and reliable option for earning a steady income from savings.

Tamilnad Mercantile Bank FD Interest Rates offer competitive returns for both short- and long-term investments. The bank provides flexible tenure options ranging from 7 days to 10 years. 

For example, Mr. Arun invested ₹2,00,000 for one year and earned steady interest at 7.00% p.a., ensuring safe and assured growth. 

This blog explains the latest Tamilnad Mercantile Bank FD rates, key features, and benefits to help you choose the right savings plan.

Tamilnad Mercantile Bank FD Interest Rates 2025

Tamilnad Mercantile Bank FD offers a variety of fixed deposit options with competitive interest rates for both regular customers and senior citizens. Their FD schemes cater to short-term as well as long-term investment needs, ensuring flexibility and attractive returns.

Tamilnad Mercantile Bank FD ensures that both short-term and long-term investors can grow their savings safely with reliable interest rates. Whether you are a regular customer or a senior citizen, you can select a tenure that best suits your financial goals.

Bonus Tip: To maximise your returns, consider investing in the special “TMB 400 Days” scheme, which offers one of the highest interest rates among Tamilnad Mercantile Bank FD options.

Types of Tamilnad Mercantile Bank FD Schemes

Tamilnad Mercantile Bank (TMB) FD offers a range of fixed deposit (FD) schemes to suit different needs. Whether you want regular interest, tax benefits, or NRI-specific options, TMB has a plan for you.

1. Standard & General FDs

• TMB Fixed Deposits Account: A basic FD with a fixed tenure and interest rate.
   
• Muthukuvial Deposits: A cumulative FD where interest is reinvested, giving higher returns through compounding.
   
• Pearl Deposit Account: Provides flexible interest payouts, which can be received quarterly or at chosen intervals.

2. Specialty FDs

• Santosh FD: Designed for senior citizens, offering the benefits of both savings and fixed deposit accounts.
   
• TMB 20:20 Deposit Scheme: A short-term scheme of 20 months and 20 days, designed to offer enhanced returns.

3. Tax-Oriented & NRI FDs

• TMB Tax Saving Deposit Scheme: Allows tax saving while choosing interest payouts monthly, quarterly, or at maturity.
   
• NRE Deposits: FDs for non-resident Indians to invest in foreign currency.
   
• NRO Deposits: FDs for non-resident Indians to manage income earned in India.
   
• FCNR Deposits: Foreign Currency Non-Resident deposits for NRIs, offering investment in foreign currencies.

Tamilnad Mercantile Bank FD  ensures that its FD schemes cater to everyone, from local savers to NRIs, making it easy to grow your money safely and efficiently.

Features and Benefits of Tamilnad Mercantile Bank FD

Tamilnad Mercantile Bank FD offers a range of features that make it flexible and convenient for customers.

• Fixed Tenure: Deposits are accepted for a fixed period, ensuring guaranteed returns.
   
• Nomination Facility: You can nominate a person to claim the deposit in case of unforeseen events.
   
• Interest Options: Earn simple interest with the flexibility to withdraw it monthly or quarterly.
   
• Premature Withdrawal: You can close the deposit early, subject to applicable penalties.
   
• Loan Facility: Obtain loans against your deposit amount whenever needed.
   
• Automatic Transfer: Set standing instructions to transfer interest directly to your account.

With Tamilnad Mercantile Bank FD, you can enjoy secure returns, easy access to funds, and convenient interest management, making it a smart choice for savers.

Comparison of Tamilnad Mercantile Bank FD Rates with Other Banks

Fixed deposits remain a safe way to save and grow money. Different banks and finance companies in India offer varied FD interest rates, so it is important to compare before investing. The following table shows how Tamilnad Mercantile Bank FD rates stand against other major banks:

From this comparison, Tamilnad Mercantile Bank FD offers attractive returns, especially for senior citizens, making it a safe and rewarding investment option.

Eligibility Criteria and Required Documents for Tamilnad Mercantile Bank FD Interest Rates

Tamilnad Mercantile Bank FD allows a wide range of customers to invest securely and earn fixed returns.

Eligibility Criteria

• Individuals: Resident Indian citizens aged 18 years and above can open an FD.
   
• Senior Citizens: Individuals aged 60 years and above can opt for the Senior Citizen FD scheme, which may offer higher interest rates.
   
• Other Entities: Hindu Undivided Families (HUFs), partnership firms, limited companies, and trusts can also open an FD.

Required Documents

• Completed FD Application Form: The official form for opening a fixed deposit account.
   
• Identity Proof: Provide one of the following: PAN Card, Aadhaar Card, Passport, Voter ID Card, or Driving Licence.
   
• Address Proof: Provide one of the following – Aadhaar Card, Passport, Voter ID Card, or a recent utility bill (e.g., electricity bill).
   
• Recent Passport-Size Photograph: Mandatory for offline applications.

By meeting these eligibility criteria and submitting the required documents, you can easily open a Tamilnad Mercantile Bank FD and start earning fixed returns safely and efficiently.

Tax Implications on Tamilnad Mercantile Bank FD

Interest earned on Tamilnad Mercantile Bank FD is treated as income from other sources and is fully taxable according to your income tax slab.

• TDS Deduction: The bank deducts TDS on FD interest if it exceeds certain limits:
   
  • Individuals (non-senior citizens): 10% TDS if annual interest exceeds ₹50,000.
     
  • Senior Citizens: 10% TDS if annual interest exceeds ₹1,00,000.
     
  • Without PAN: TDS is deducted at a higher rate of 20%.
     
• Avoiding TDS: Submit Form 15G (for non-senior citizens) or Form 15H (for senior citizens) to the bank to avoid TDS deduction.
   
• Section 80TTB Benefit: Senior citizens can claim a deduction of up to ₹50,000 on interest income from bank deposits, including Tamilnad Mercantile Bank FD.

Understanding these tax implications helps you plan your investments and manage returns from Tamilnad Mercantile Bank FD efficiently.

Tamilnad Mercantile Bank Premature Withdrawal and Closure Rules 

Tamilnad Mercantile Bank FD allows depositors to request Premature Withdrawal at the bank’s discretion.

• Interest Payment: The bank pays interest for the period the deposit remains with the bank, minus any applicable penalty.
   
• Penalties:
   
  • For most deposits, the bank deducts a fixed penalty from time to time.
     
  • Bulk deposits of ₹1,00,00,000 and above face no penalty if closed after 14 days.
     
  • For TMB 20:20 deposits, a penal interest of 0.50% is charged on the rate applicable for the period the deposit remained with the bank.
     
• Bank Notification: The bank informs the depositor about any applicable penalty at the time of accepting the deposit.

These rules ensure that Tamilnad Mercantile Bank FD remains flexible while protecting the interest structure for all depositors.

How to Invest in Tamilnad Mercantile Bank FD?

You can invest in a Tamilnad Mercantile Bank FD either online through internet banking or the mobile app, or offline by visiting a branch. You need your TMB account details, the deposit amount, and to select the FD scheme, tenure, and interest payout frequency.

Online Method

1. Log in: Access the TMB internet banking portal or mobile app using your customer ID and password.
    
2. Select FD: Go to the "Fixed Deposits" section and choose “Apply Online” or “Create New FD.”
    
3. Enter Details: Provide your deposit amount, select the tenure (7 days to 10 years), and choose your interest payout frequency.
    
4. Add Nominee & Confirm: Enter nominee details, verify all information, and submit the form.
    
5. Receive Confirmation: Get instant confirmation of your FD via SMS or email.

Offline Method

1. Visit a Branch: Go to the nearest TMB branch.
    
2. Fill the Form: Complete the Fixed Deposit application form with all personal and FD details.
    
3. Submit Documents and Funds: Provide your savings account number, deposit amount, and KYC documents (for new customers).
    
4. Get FD Receipt: After verification and processing, the bank issues your FD receipt.

Investing in a Tamilnad Mercantile Bank FD is simple and convenient, offering flexible options to suit your savings goals.

Conclusion

Tamilnad Mercantile Bank FD offers investors a reliable and secure way to grow their savings with competitive interest rates and flexible tenure options. Whether you are planning for short-term goals or long-term financial security, Tamilnad Mercantile Bank FD schemes provide steady returns and safety for your investments. It is an ideal choice for those seeking a balance between stability and profitability.

FAQ’s

1. What is the minimum deposit amount for a Tamilnad Mercantile Bank FD?
You can start a Tamilnad Mercantile Bank FD with a minimum deposit of ₹1,000.

2. What is the maximum tenure available for Tamilnad Mercantile Bank FD?
The maximum tenure for a Tamilnad Mercantile Bank FD is 10 years.

3. Can I withdraw my Tamilnad Mercantile Bank FD before maturity?
Yes, you can make a premature withdrawal, but it may attract a penalty on the interest rate.

4. Are senior citizens offered higher interest rates on Tamilnad Mercantile Bank FD?
Yes, senior citizens receive an additional interest rate benefit over regular rates.

5. How can I open a Tamilnad Mercantile Bank FD account?
You can open it online through TMB’s internet banking or mobile app, or offline by visiting any TMB branch.