Tamil Nadu Grama Bank Short Term FD

What is Tamil Nadu Grama Bank Short Term FD?

Tamil Nadu Grama Bank Short Term Fixed Deposit allows depositors to place money for a period of 15 days up to 12 months, enjoying stable interest with monthly, quarterly, half-yearly, or yearly payouts. With a minimum deposit amount of ₹100 (and thereafter in multiples of ₹100), the scheme is accessible to a wide range of customers. This FD can be opened by both new and existing customers of Tamil Nadu Grama Bank, with advantages like loan facilities, premature closure, and automatic renewal service.

Tamil Nadu Grama Bank Short Term FD Interest Rates

Below is the latest Tamil Nadu Grama Bank FD interest rate structure for deposits below ₹1 crore as provided:

*Tamil Nadu Grama Bank Short Term FD interest rates w.e.f. 23 December 2025.

Key Features of Tamil Nadu Grama Bank Short Term Fixed Deposit

The short term FD in Tamil Nadu Grama Bank is designed to combine safety, income regularity, and flexibility for depositors.

• Loan Facility Against Deposit: Customers may take a loan using their FD as security for the deposit tenure, at interest rates set by the bank. This helps depositors meet urgent cash needs without closing the fixed deposit early.
• Premature Closure Flexibility: Early closure of deposits is allowed, and for deposit amounts up to ₹15 lakh, no pre-closure charges apply, providing ease during urgent fund needs situations.
• Automatic Renewal & Sweep Facility: Tamil Nadu Grama Bank Short Term FD offers automatic renewal on maturity and sweep-in/sweep-out options, keeping funds invested while maximising returns and liquidity.
• Branch Transfer Facility: A special convenience feature enables deposit accounts to be shifted between any branches of Tamil Nadu Grama Bank upon the depositor’s request, maintaining uninterrupted services after relocation.

How to Open a Tamil Nadu Grama Bank Short Term FD Account?

Opening a Tamil Nadu Grama Bank Short Term Fixed Deposit (FD) is fast and uncomplicated. The bank provides guidance online and at branches, ensuring that all customers, including new and existing account holders, can complete the process easily.

1. Online Method

   Final FD account activation needs branch verification, yet customers can begin the process digitally. The online method steps include: 

   • Visit Website: Visit the official Tamil Nadu Grama Bank website.
   • Scheme Details: Examine fixed deposit scheme details, tenure, and interest rates.
   • Tenure Pick: Select a deposit tenure matching your financial goals.
   • Return Review: Calculate expected returns using listed interest rates.
   • Branch Contact: Contact the nearest branch using available online details.
   • Branch Visit: Visit the branch with KYC documents to deposit funds.

2. Offline Method

   Customers may also start a Tamil Nadu Grama Bank Short Term FD by visiting any branch personally:

   • Visit Branch: Visit the nearest Tamil Nadu Grama Bank branch today.
   • Form Request: Request the Fixed Deposit application form from the bank staff.
   • Form Details: Fill in personal and nominee details accurately in the form.
   • Option Selection: Choose the tenure and preferred interest payout frequency option.
   • KYC Process: Submit required KYC identification and address documents.
   • Fund Deposit: Deposit funds through cash cheque or account transfer.

Eligibility Rules for Tamil Nadu Grama Bank Short Term FD

Tamil Nadu Grama Bank Short Term FD is accessible to a wide range of investors. The eligibility requirements ensure that both existing and new customers can benefit from secure, flexible, and profitable deposit options.

• Joint Accounts: Joint FDs can be opened as per bank rules, provided all necessary KYC documents for every holder are submitted.
• Account Requirement: Depositors need to hold or open a Savings (SB) or Current Account (CA) for interest crediting.
• Nomination Facility: Depositors can designate a nominee at the time of opening the FD, ensuring that funds are smoothly transferred to the chosen beneficiary in unforeseen circumstances.
• Documentation: Applicants must provide all officially recognised KYC documents for identity and address verification at the branch on request.
• Customer Status: Tamil Nadu Grama Bank allows both new and existing customers to open a Short Term FD.
• Residency: This scheme is mainly meant for individuals residing in India. Non-resident applicants should check eligibility at the branch.

Tax Implications on Tamil Nadu Grama Bank FD Investment

Interest earned on Tamil Nadu Grama Bank Short Term Fixed Deposit is completely taxable under Section 194A of the Income Tax Act. The bank will deduct Tax Deducted at Source (TDS) on applicable interest amounts before crediting interest to the depositor’s account. Furthermore, TDS applies when yearly FD interest goes beyond ₹50,000 for ordinary taxpayers and ₹1,00,000 for senior citizens, according to the bank’s tax deduction rules. The tax deducted should be reported while submitting the yearly income tax return, and investors are entitled to claim credit for TDS according to their personal income slab.

Key Takeaways

Deposits may be placed for durations from 15 days up to 12 months, with investments beginning at ₹100, and FD interest rates offering 6.85% per year for the general public, 7.35% for seniors. The Tamil Nadu Grama Bank Short Term FD remains a reliable choice for capital protection and steady income. Added benefits like monthly payout of FD interest, zero penalty premature closure up to ₹15 lakh, automatic renewal options, and loan facilities make it attractive for investors wanting low-risk, steady long-term growth.