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Tamilnad Mercantile Bank FD Interest Rate

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 corpo...Read More

Tamilnad Mercantile Bank Fixed Deposit Interest Rates

Note: All interest rates are updated as of 30 Jan 2024
TenureFor General Citizen (p.a)For Senior Citizen (p.a)
7 days to 14 days5.25 %5.25 %
15 days to 29 days5.25 %5.25 %
30 days to 45 days5.25 %5.25 %
46 days to 60 days5.25 %5.25 %
61 days to 90 days5.25 %5.25 %
91 days to 120 days5.25 %5.25 %
121 days to 179 days6 %6 %
180 days to 270 days6 %6 %
271 days to less than 1 year6 %6 %
1 year only
7.25 %7.75 %
More than 1 year to less than 20 months 20 days7 %7.5 %
20 months 20 days only7 %7.5 %
More than 20 months 20 days to less than 2 years7 %7.5 %
2 years to less than 3 years6.75 %7.25 %
3 years to 10 years6.5 %7 %

Types of Tamilnad Mercantile Bank Fixed Deposits

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

Pros 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 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. 

Cons of investing in Tamilnad Mercantile Bank Fixed Deposit

  • 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.

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:

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 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. 

Tax implications on Tamilnad Mercantile Bank FD

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. 

How to claim 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.


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.

Tamilnad Mercantile Bank

Calculate Tamilnad Mercantile Bank FD Returns

1 year only
7 days to 14 days15 days to 29 days30 days to 45 days46 days to 60 days61 days to 90 days91 days to 120 days121 days to 179 days180 days to 270 days271 days to less than 1 year1 year onlyMore than 1 year to less than 20 months 20 days20 months 20 days onlyMore than 20 months 20 days to less than 2 years2 years to less than 3 years3 years to 10 years
7.25 %
Maturity Amount₹1,07,250

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