7 Mins

Tamilnad Mercantile Bank offers various fixed deposits with varying tenures to its customers. Their term deposit interest rates range between 3.5% and 5.75%. The bank also offers premature withdrawal and loan against their FDs. With Tamilnad Mercantile Bank FDs, they want their customers to be a step ahead in life. In this article, we have covered about TMB FDs and its interest rates in detail.

TMB FD Rates 2021

The following table below shows the Tamilnad Mercantile Bank fixed deposit interest rates.

Tamilnad Mercantile Bank fixed deposit interest rates range between 3.5%-5.75% for regular citizens. The TMB fixed deposit rates for senior citizens are in the range of 3.5% -6.25%. The tenure of the term deposits is between 15 days to 10 years. The interest rates for these term deposits are higher than their savings account rates. Moreover, the senior citizens TMB bank FD rates are higher than regular citizen rates by 0.5%. Interest is credited with monthly or quarterly as per the choice of investors.

The highest term deposit interest rate for Tamilnad Mercantile Bank is 5.75% for a regular investor for the tenure of 1 year to 20 months. For the same tenure, the highest senior citizen FD interest rate is 6.25%.  Returns from TMB fixed deposits can be calculated using the Scripbox’s FD Calculator.

TenureRegular FD Interest RatesSenior Citizen FD Interest Rates
15-29 days3.50%3.50%
30-45 days3.75%3.75%
46-60 days4.25%4.25%
61-90 days4.25%4.25%
91-179 days5%5%
180-270 days5.25%5.25%
271 days to less than 1 year5.25%5.25%
1 year5.75%6.25%
Above 1 year to less than 20 months 20 days5.75%6.25%
20 months and 20 days5.75%6.25%
Above 20 months 20 days to less than 2 years5.75%6.25%
2 years to less than 3 years5.65%6.15%
3 – 10 years5.5%5.50%
Note: TMB FD rates are revised periodically

Key Features of Tamilnad Mercantile Bank Fixed Deposit

Tamilnad Mercantile Bank fixed deposit schemes offer better returns than a savings bank account. Following are the key features of TMB fixed deposits:

Tenure, Minimum and Maximum Deposit Amount

Tamilnad Mercantile Bank fixed deposit tenure ranges between 15 days to 10 years. Once invested, one cannot change the tenure of TMB FD investment. However, one can opt for premature withdrawal. And investors can close the existing TMB Bank FD and start a new FD with the desired tenure.

Investors can invest in Tamilnad Mercantile Bank fixed deposits with an amount as low as INR 1,000. Also, for the tax saver FDs, the minimum investment amount is INR 100. There is no cap on the maximum amount of investment except for tax saver fixed deposits, which is INR 1.5 lakhs.

TMB FD Interest Rate and Preferential Interest Rates

The rate of interest on Tamilnad Mercantile Bank fixed deposit ranges between 3.5%-5.75%. Tamilnad Mercantile Bank FD rates for its Senior citizens depositors are 0.5% higher. The preferential TMB deposit rates are for FD investments below INR 1.99 cr for tenure ranging from 1 year to 3 years.

Eligibility and Documents required

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

Additional Payments and Requirement of savings account

It is not possible to deposit any additional amount in an existing TMB fixed deposit. However, one can always invest in a fresh TMB FD with the additional amount. Furthermore, individuals need not have a TMB bank account to open a fixed deposit scheme.

Tax, TDS and PAN Card

Investment in TMB TaxSaving Deposit – Malligai and Mullai qualifies for tax deduction under Section 80C of the Income Tax Act, 1961. Depositors can claim the tax benefits while filing their income tax returns. All other TMB FDs do not qualify for tax deductions.

The interest earned on their TMB FD investments is taxable as per the individual’s income tax slab rates. Furthermore, Tamilnad Mercantile Bank deducts a TDS of 10% (20% if PAN isn’t submitted) in case the interest income exceeds INR 40,0000 (INR 50,000 for senior citizens).

Submitting PAN Card details is mandatory to open an FD account with TMB. In the case of non-submission of PAN details, the bank will deduct the TDS at 20%, and it will not issue any TDS certificate. Moreover, form 15G, 15H, and all other exemption certificates will be invalid.

One can determine whether their interest income is above or below the TDS threshold limit using a fixed deposit calculator. Moreover, one can estimate their tax liability using an Income Tax Calculator. Scripbox’s Income Tax Calculator is available online, and one can use it for free to determine their tax liability.

Premature Withdrawal and Loan against FD and Overdraft

The Tamilnad Mercantile Bank allows premature withdrawal on their FDs. However, it will not pay any interest to the investors on premature withdrawal of deposits within 14 days from the deposit or renewal date. And in all other cases, the bank deducts a penalty of 1% on the contracted interest rate. Furthermore, TMB allows investors to take a loan against their FDs to meet the liquidity requirements without breaking the FDs. This will also free them from the hassle of applying for a loan and going through the entire process. Investors can get up to 90% of the deposit amount as loan.

Nomination Facility, Auto-Renewal, and Convenience

Depositors can nominate beneficiaries for their TMB FDs. Moreover, TMB offers an auto-renewal facility to depositors for their fixed deposits.

Also, opening and managing TMB fixed deposit investments are easy and convenient through their online portal.

Types of Fixed Deposit Schemes offered by TMB

Following are the 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

Types of Fixed Deposit Schemes: In Detail

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

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.

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 10 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

Pearl Deposit Account

The scheme offers deposits for a fixed period with 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

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% if the deposit amount.
  • Premature closure: Available