TMB Fixed Deposit

Tamilnad Mercantile Bank offers multiple fixed deposits for various tenures with different interest rates to its investors. The interest rates on TMB Bank FD is higher than their savings account. One can invest in Tamilnad Mercantile Bank FDs through both online and offline modes with a minimum investment of INR 1,000. This article covers TMB Bank FD, its features and interest rates in detail.

Tamilnad Mercantile Bank Fixed deposit schemes

Following are the types of TMB FD schemes:

• Fixed Deposit Account
• Muthukuvial Deposit Account
• Cash Certificates
• Tax Saving Deposit Account
• Pearl Deposit Account
• 20:20 Deposit Account

TMB Fixed Deposit Account

The scheme is amongst the earliest interest-bearing savings schemes. Following are the features of the scheme:

• Tenure: 15 days to 12 months
• Interest Payout: Depositors can choose between monthly or quarterly withdrawals
• Loan against FD: Available
• Nomination Facility: Available
• Premature closure: Allowed, however, attracts penalty

TMB Muthukuvial Deposit Account

Muthukuvial Deposit Account is a reinvestment plan that earns a higher rate of interest on savings. Following are the features of the scheme:

• Tenure: 12 months to 10 years
• Minimum Amount: INR 1,000 and in multiples of INR 1,000 thereafter
• Loan against FD: Available
• Nomination Facility: Available
• Premature closure: Allowed, however, is subject to penalty.

TMB Cash Certificates

Cash certificates is a deposit scheme that is available in different denominations. TMB Bank’s cash certificates are available in the following denominations, INR 1,000, INR 5,000, INR 10,000, INR 25,000, INR 50,000 and INR 1,00,000. Following are the features of the scheme:

• Tenure: 12 months to 10 years
• Minimum Amount: INR 1,000 and in multiples of INR 1,000 thereafter
• Loan against FD: Available
• Nomination Facility: Available
• Premature closure: Allowed, however, is subject to penalty.

Tax Saving Deposit Account

The scheme offers tax benefits to its depositors. Deposits up to INR 1,50,000 can be claimed for tax benefit under Section 80C of the Income Tax Act. TMB bank offers the following two types of tax savings schemes:

TMB Tax Saving Deposit – Malligai

Under this scheme, the depositors can withdraw interest monthly or quarterly or half-yearly or annually.

TMB Tax Saving Deposit – Mullai

Under this scheme, the interest will be paid upon maturity of the deposit. The scheme offers cumulative interest.

• Following are the features of the scheme:
• Lock-in period: 5 years and ten years
• Minimum Deposit Amount: INR 100 and in multiples of INR 100 thereafter
• Maximum Deposit Amount: INR 1,50,000
• Nomination Facility: Available
• Loan against FD: Not available
• Premature closure: Not available

TMB Pearl Deposit Account

The scheme offers deposits for a fixed period with an interest withdrawal option. Following are the features of the scheme:

• Tenure: 12 months to 10 years
• Interest: The scheme offers compound interest and can be withdrawn once in 3/6/9/12 months.
• Nomination Facility: Available
• Loan against FD: Available
• Premature closure: Available

TMB 20:20 Deposit Account

It is a 20 months and 20 days deposit scheme. Following are the features of the scheme:

• Minimum Deposit Amount: INR 1,000 and in multiples of INR 1,000 thereafter
• Maximum Deposit Amount: No Limit
• Nomination Facility: Available
• Loan against FD: Available up to 90% of the deposit amount.
• Premature closure: Available

Key Features of Tamilnad Mercantile Bank Fixed Deposit Schemes

• Tenure: The tenure of a Tamilnad Mercantile Bank FD ranges from fifteen days to ten years. One cannot change the tenure of their Tamilnad Mercantile Bank FD once it has commenced.
• Minimum and maximum investment: The minimum investment in Tamilnad Mercantile Bank FD is INR 1,000, and for tax saving, FD is INR 100. However, there is no limit on the maximum amount of investment in Tamilnad Mercantile Bank FD.
• TMB Bank FD Interest Rates: TMB Bank FD interest rates range between 5.3% and 7.5% for regular citizens and between 5.3% and 8.0% for senior citizens. Moreover, Tamilnad Mercantile Bank offers an additional 0.5% interest to senior citizens on their FDs for a tenure above one year. Tamilnad Mercantile Bank pays interest monthly or quarterly as per the choice of the investor.
• Premature withdrawal: All Tamilnad Mercantile Bank FDs can be withdrawn prematurely except for the tax-saving FD. The penalty for withdrawing the Tamilnad Mercantile Bank FD investment prematurely is 1% on the contracted interest rate.
• Loan against FD: Tamilnad Mercantile Bank offers loans against their FDs. Investors can get up to 90% of the deposit amount as a loan against their Tamilnad Mercantile Bank FD investment. Also, the interest rate for the loan will depend on the Tamilnad Mercantile Bank norms.
• Nomination facility: Tamilnad Mercantile Bank FD investors can nominate beneficiaries for their FDs.
• Auto-renewal: Investors can opt for auto-renewal of their Tamilnad Mercantile Bank FDs.
• Safety: The Deposit Insurance Scheme of RBI covers all Tamilnad Mercantile Bank deposits. The scheme covers all Tamilnad Mercantile Bank deposits up to INR 5,00,000.
• Additional payments: Investors cannot deposit an additional amount in a Tamilnad Mercantile Bank FD once it has commenced. However, they can open a fresh Tamilnad Mercantile Bank FD with the new amount.

How to open a TMB Bank FD deposit account?

One can open a TMB Bank FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open a TMB Bank FD account through internet banking:

• Login to the TMB Bank NetBanking account.
• Under the ‘Fixed Deposits’ section, select the type of deposit account.
• Fill in all the necessary details in the account opening form. Provide maturity, payment, interest payout instructions.
• Verify the details and click on ‘Submit. Upon successful processing, the investor will be notified.

Through Mobile App

TMB Bank App

The following steps will guide in opening an FD account through TMB Bank Mobile App:

• Download the TMB Bank App.
• Under the ‘Fixed Deposits’ section, select the type of deposit account.
• Fill in all the necessary details in the account opening form. Provide maturity, payment, interest payout instructions.
• Verify the details and click on ‘Submit. Upon successful processing, the investor will be notified.

Offline TMB Bank FD Opening

To open a TMB Bank FD account offline, one has to visit the nearest TMB Bank branch. Fill the TMB Bank FD application form and submit all the necessary documents along with the deposit amount. On successfully processing the application, TMB Bank will provide an FD receipt.

Documents required to Open a TMB Bank FD

To open a Tamilnad Mercantile Bank fixed deposit scheme, one would need the following documents:

• Tamilnad Mercantile Bank Fixed Deposit application form
• Passport size photographs
• PAN Card
• Government ID proof (PAN Card, Aadhar Card, Passport, Driving License, Voter ID)
• Address proof (Aadhar Card, Passport and Utility bills)

Eligibility to Open a TMB Bank FD

All resident individuals of India are eligible to open an FD account with Tamilnad Mercantile Bank.

Does Tamilnad Mercantile Bank offer Recurring Deposits?

Tamilnad Mercantile Bank offers recurring deposits to its depositors. Tamilnad Mercantile Bank recurring deposits have a minimum tenure of one year and a maximum tenure of 10 years. Depositors can open an RD account either by going to the Tamilnad Mercantile Bank branch or online using internet banking. The minimum investment in Tamilnad Mercantile Bank RD is INR 10 and thereafter in multiples of INR 10. The interest rate for regular citizens on Tamilnad Mercantile Bank RDs is in the range of 6.25% to 6.4%, and for senior citizens, it is in the range of 6.75% to 6.9%.

Is FD interest taxable?

Only investment in Tamilnad Mercantile Bank Tax Saving FD qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other Tamilnad Mercantile Bank FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from Tamilnad Mercantile Bank FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to a TDS of 10% if the income from Tamilnad Mercantile Bank FD exceeds INR 40,000 per annum. For senior citizens, the limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to the Tamilnad Mercantile Bank, then the TDS rate will be 20%.

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