Tamilnad Mercantile Bank FD Interest Rate

These are the types of fixed deposits offered by Tamilnad Mercantile Bank:

TMB Fixed Deposit Account

This is one of the oldest term deposit schemes offered by Tamilnad Mercantile Bank. You can withdraw either monthly or quarterly interest income and place standing orders to get interest income on specific dates. 

• Minimum investment: ₹1,000
• Maximum investment: No upper limit
• Scheme tenure: 7 days to 10 years
• Simple interest is eligible depending on the tenure of the deposit.
• A nomination facility is available.
• Premature withdrawal is allowed, subject to a penalty.
• You can avail the loan against the deposit amount.
• The additional interest rate is payable on term deposits to senior citizens. This is not available for NRE term deposits.

TMB Muthukuvial

The TMB Muthukuvial is a special term deposit scheme with a reinvestment option.

• Minimum investment: ₹1,000 and in multiples of ₹1,000
• Maximum investment: No upper limit
• Scheme tenure: 1 year to 10 years 
• Compound interest is eligible depending on the tenure of the deposit
• A nomination facility is available
• Premature withdrawal is allowed subject to a penalty
• You can avail the loan against the deposit amount

TMB Tax Saving Deposit Scheme

If you invest in this FD, you are eligible for a tax deduction of up to ₹1.5 lakhs per year under Section 80C of the Income Tax Act of 1961. However, premature withdrawal and loan facilities are not available in this case. 

• Minimum investment: ₹100 and multiples of ₹100
• Maximum investment: ₹1.5 lakhs per annum 
• Scheme tenure: 5 years to 10 years (5-year lock-in)
• A nomination facility is available
• Interest payment frequency is monthly or quarterly
• Premature withdrawal is not allowed. Premature withdrawal is only permissible in the case of the depositor’s death
• You cannot avail the loan against the deposit amount

TMB Pearl Deposit Account

The TMB Pearl Deposit Account lets you opt for flexible interest payouts once every 3 months, 6 months, 9 months or 12 months. Furthermore, this scheme also offers a deposit account transfer facility. 

• Scheme tenure: 1 year to 10 years
• A nomination facility is available
• Premature withdrawal is allowed subject to a penalty
• You can avail the loan against the deposit amount
• TDS is not applicable
• Premature closure of deposit is not permitted during the pendency of the loan availed

TMB 20:20 Deposit Scheme

• Minimum investment: ₹1,000 and in multiples of ₹1,000
• Maximum investment: No upper limit
• Scheme tenure: 20 months and 20 days
• A nomination facility is available
• Premature withdrawal is allowed subject to a penalty
• You can avail loan of up to 90% of the deposit amount

• Period: The FD with Tamilnad Mercantile Bank ranges from 7 days to 10 years.
• Convenient: Open hassle-free FD using online banking in a few minutes
• DICGC insurance: The amount invested with the bank is covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) for the total sum of ₹5 lakhs. 
• Minimum amount: Fixed deposits with Tamilnad Mercantile Bank can be opened with an investment amount as low as ₹100 
• Preference to senior citizens: Additional 0.5% p.a. for senior citizens.
• Nomination facility: Depositors can nominate beneficiaries for their investments in Tamilnad Mercantile Bank FDs. 

• Not dynamic: Interest rates on FD are not dynamic. So, it fails to overcome the risk of inflation. 
• Fixed rate: Fixed deposits offer a fixed rate on the investment. Hence, you cannot benefit from higher returns in cases of increased market interest rates.

These are the eligibility criteria for opening a term deposit at Tamilnad Mercantile Bank:

• Nationality: Indian
• Age: Above 18 years
• Applicant Type: Individuals, Hindu Undivided Families (HUFs), sole proprietorships, trusts, limited companies, etc.

The documents required for opening a term deposit at Tamilnad Mercantile Bank are:

• Identity proof: PAN card, Aadhaar card, Voter ID card or driving licence 
• Address proof: Aadhaar card, Passport, Voter ID card, telephone bill or electricity bill 
• Recent passport-sized photograph

Here are the steps to open a fixed deposit with Tamilnad Mercantile Bank:

Step 1: Visit the Tamilnad Mercantile Bank’s official website.  

Step 2: Select "Deposits"; choose your preferred scheme from the drop-down menu. 

Step 3: As the new screen loads, scroll down and click on “Apply Online”. 

Step 4: Enter your account number, transaction amount and the captcha.

Step 5: Click ‘Proceed’ and wait for the new screen to load.   

Step 6: Enter the FD amount, scheme tenure and all the other necessary information. 

Step 7: Complete the transfer of funds to your FD. 

Apart from the bank website, you can also open an FD from your smartphone via the Tamilnad Mercantile Bank MBank app:

Step 1: Open the app and enter your login credentials. 

Step 2: Navigate to the ‘’Fixed Deposits” tab and choose your preferred term deposit scheme. 

Step 3: When the account opening form loads, enter the details like FD amount, tenure, interest payout preference, etc. 

Step 4: Recheck all the details and click “Submit”. 

The bank will deduct the FD amount from your savings account, and your term deposit will start. You will receive a notification on your registered number and e-mail ID.

You can also use the Tamilnad Mercantile Bank econnect NetBanking portal for opening a fixed deposit account.

Tamilnad Mercantile Bank allows premature withdrawal for all its FDs except for tax-saving term deposits. However, there are some associated penal charges. They are as follows:

• In the case of domestic and NRO FDs, if you withdraw within 14 days from the deposit/renewal date, no interest shall be payable. A 1% penalty on the applicable interest rate will be chargeable for premature withdrawals after this time. 
• For FD investments above ₹2 crores, there are no penal charges if you withdraw within 7 days. 
• Regarding NRE deposits, there shall be no interest payment for premature withdrawals within 1 year of investment. Post this, penal charges of 1% will be levied on the eligible Tamilnad Mercantile Bank FD rates. 

According to the Income Tax Act of India of 1961, taxpayers can seek deductions under Section 80C if they invest in FDs.

In a given financial year, a taxpayer can avail tax deduction to a maximum of ₹1.5 lakhs from their gross taxable income, provided the following conditions are fulfilled:

• Taxpayers can invest in FD either through public or private sector banks. 
• Individuals and HUFs can avail tax deductions by investing in tax savings FDs. 
• Bank's five-year tax saving FD offers exemptions under Section 80C. 
• Investors cannot get loans against these FDs. 
• In the case of joint holders, only the first holder can get tax benefits. 

When filing the Income Tax Returns (ITR), the taxpayer can provide supporting documents to avail tax benefits on FDs. 

Tax Deducted at Source (TDS)

* TDS will be deducted from the interest accrued on the FDs if the interest is more than ₹40,000 (₹50,000 for senior citizens) in a given financial year. 
* For Resident customers, if you have submitted your PAN card details, the deduction will be 10% per year on the interest. The bank will deduct 20% of TDS annually without a PAN card.