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Tamilnad Mercantile Bank Fixed Deposit

Updated 06 Dec 2023

Established on May 11, 1921 as the Nadar Bank Ltd, Tamilnad Mercantile Bank is a modern-age banking institution. Apart from all the usual banking services, it also deals in Agriculture, MSME and corporate banking segments. Headquartered in Tuticorin, Tamil Nadu, this bank has around 509 branches and 1141 ATMs all over India.

Types of Tamilnad Mercantile Bank Fixed Deposits

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

  • TMB Fixed Deposit Account
  • TMB Muthukuvial
  • TMB Tax Saving Deposit Scheme
  • TMB Pearl Deposit Account
  • TMB 20:20 Deposit Scheme

Benefits of investing in Tamilnad Mercantile Bank Fixed Deposit

  • 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 of ₹1,000 and for tax saver FD 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.

Features of Tamilnad Mercantile Bank Fixed Deposits

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 of 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.
  • Based on the tenor, the interest rate ranges from 5.25% to 7.25% for the general public, and 5.25% to 7.75%

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.
  • Based on the tenor, the interest rate ranges from 5.25% to 7.25% for the general public, and 5.25% to 7.75%.

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.
  • Based on the tenor, the interest rate ranges from 5.25% to 7.25% for the general public, and 5.25% to 7.75%.

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 of the loan against the deposit amount.
  • TDS is not applicable.
  • Premature closure of the deposit is not permitted during the pendency of the loan availed.
  • Based on the tenor, the interest rate ranges from 5.25% to 7.25% for the general public, and 5.25% to 7.75%.

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.
  • Based on the tenor, the interest rate ranges from 5.25% to 7.25% for the general public, and 5.25% to 7.75%.

Tamilnad Mercantile Bank FD Eligibility Criteria

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.

Documents Required for Tamilnad Mercantile Bank FD Account

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

How to Open an FD with Tamilnad Mercantile Bank?

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

  • Visit the Tamilnad Mercantile Bank’s official website.  
  • Select "Deposits"; choose your preferred scheme from the drop-down menu. 
  • As the new screen loads, scroll down and click on “Apply Online”. 
  • Enter your account number, transaction amount and the captcha.
  • Click ‘Proceed’ and wait for the new screen to load.   
  • Enter the FD amount, scheme tenure and all the other necessary information. 
  • 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:

  • Open the app and enter your login credentials. 
  • Navigate to the ‘’Fixed Deposits” tab and choose your preferred term deposit scheme. 
  • When the account opening form loads, enter the details like FD amount, tenure, interest payout preference, etc. 
  • 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 E-connect NetBanking portal to open a fixed deposit account.

Tamilnad Mercantile Bank Fixed Deposit Premature Withdrawal

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.

FAQs

Can I change the FD tenure before it matures?

No, there are no provisions for changing the term deposit scheme tenure before it matures. The only solution is to close your current FD and open another with a suitable maturity period. 

How many FDs can I open at Tamilnad Mercantile Bank?

There is no limit to the maximum number of term deposits you can open at Tamilnad Mercantile Bank.

Is the ₹5 lakhs DICGC insurance cover applicable on Tamilnad Mercantile Bank FD?

Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to Tamilnad Mercantile Bank FD.

How to break FD in Tamilnad Mercantile Bank?

To break an FD at Tamilnad Mercantile Bank, you can go to the nearest Tamilnad Mercantile Bank branch. Fill up the FD liquidation form and provide the necessary KYC documents. Submit the form to the bank officials. In addition, you can also close your term deposit via the Tamilnad Mercantile Bank MBank or the TMB econnect NetBanking portal.

Can I add/change a nominee for my fixed deposit?

You can add or change a nominee for your term deposit by filling out Form DA3 (Nomination Change Form). The bank will take 2 to 3 business days to process your request. You can complete this process both online and offline.

Disclaimer: Wint Wealth makes no guarantee or warranty on the accuracy of the data provided on this site, the information displayed is subject to change and are provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. You are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions. We accept no liability for any loss arising from the use of information contained on this website.

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