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.
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 days to 14 days||5.25%||5.25%|
|15 days to 29 days||5.25%||5.25%|
|30 days to 45 days||5.25%||5.25%|
|46 days to 60 days||5.25%||5.25%|
|61 days to 90 days||5.25%||5.25%|
|91 days to 120 days||5.25%||5.25%|
|121 days to 179 days||6%||6%|
|180 days to 270 days||6%||6%|
|271 days to less than 1 year||6%||6%|
|1 year only||7.25%||7.75%|
|Note: All interest rates are updated as of 1st Aug 2023|
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.
The TMB Muthukuvial is a special term deposit scheme with a reinvestment option.
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.
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.
TMB 20:20 Deposit Scheme
These are the eligibility criteria for opening a term deposit at Tamilnad Mercantile Bank:
The documents required for opening a term deposit at Tamilnad Mercantile Bank are:
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:
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:
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.
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.
There is no limit to the maximum number of term deposits you can open at Tamilnad Mercantile Bank.
Yes. ₹5 lakhs DICGC (Deposit Insurance and Credit Guarantee Corporation) insurance cover applies to Tamilnad Mercantile Bank FD.
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.
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: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.