Tamilnad Mercantile Bank FD Interest Rates 2026

Top Guaranteed Return Plans 

Fixed Deposits (FDs) are very common in terms of low-risk, fixed-income investments. They are safe and provide a stable interest rate, but the interest rate might be low. Conversely, Guaranteed Return Plans are an insurance cover on insurance with possible higher returns in the long run. Such plans are perfect for individuals who want to enjoy both wealth creation and protection. FDs have been a good choice when matters most are simplicity, safety, and flexible tenure.

What is a Tamilnad Mercantile Bank Fixed Deposit?

Tamilnad Mercantile Bank Fixed Deposit allows you to invest a lump sum amount for a fixed tenure and earn interest at a predetermined rate. It is suitable for both regular individuals and senior citizens seeking stable, risk-free returns with higher FD interest rates. Senior citizens enjoy an additional interest benefit of up to 0.50% on select tenures. However, this additional rate does not apply to NRO term deposits and is not applicable for tenures below one year, except under the TMB300 Special Deposit Scheme. 

Information About FDs & Other Options

When choosing an investment, it's important to understand the distinctions between options. Fixed deposits offer guaranteed returns and security, while other products, such as guaranteed return plans and mutual funds, can provide growth opportunities with different degrees of risk.

Tamilnad Mercantile FD Interest Rates: Key Highlights

Tamilnad Mercantile Bank FD: Latest Updates 

During the week in June 2025, 10 banks, including Tamilnad Mercantile Bank, increased their FD interest rates,

Tamilnad Mercantile Bank Interest Rates 

Fixed Deposit Rates on Domestic/NRO deposits less than Rs 3 crore 

*Tamilnad Mercantile Bank FD Interest Rates w.e.f. October, 04 2025

Above Rs 3 crore to less than Rs 10 crore 

*Tamilnad Mercantile Bank FD Interest Rates w.e.f. December 04, 2025

Types of Tamilnad Mercantile Bank FD Schemes 

Here is a concise overview of the fixed deposit schemes offered by Tamilnad Mercantile Bank (TMB), with short explanations and key benefits for each.

1. Fixed Deposit Account

   This is TMB's standard fixed deposit scheme for a lump-sum investment. It offers a fixed interest rate for a chosen tenure. It's a reliable option for those seeking a safe and predictable return on their savings.

   • Flexible Tenure: 5 days to 10 years.
   • Income Options: monthly or quarterly
   • Liquidity: You can avail of a loan against your deposit 

2. Muthukuvial Fixed Deposit

   This is a reinvestment scheme where the interest earned is compounded annually and reinvested into the principal. This helps your deposit grow faster, leading to a larger maturity value. It's an ideal choice for long-term wealth creation.

   Benefits:

   • Compounding Growth: Earn a higher return as your interest is compounded and added to the principal.
   • Low Minimum Deposit: ₹1,000
   • Loan & Premature Withdrawal: Allowed 

3. Tax Saving Deposit

   This scheme is designed to help you save on income tax while growing your savings. The principal amount of up to ₹1.5 lakh is eligible for a tax deduction under Section 80C of the Income Tax Act. It has a mandatory lock-in period of 5 years.

   Benefits:

   • Dual Advantage: Enjoy both tax benefits and guaranteed returns.
   • Two Interest Options: Choose between receiving periodic interest payouts or a lump-sum amount at maturity 
   • Security: Your investment is locked in for 5 years

4. Pearl Deposit

   The Pearl Deposit is a long-term fixed deposit scheme with a flexible interest withdrawal option. It offers compounding interest, but you have the unique ability to withdraw the accrued interest at specific intervals.

   Benefits:

   • Compound Interest: Maximizing your returns over time.
   • Periodic Withdrawals: every 3, 6, 9, or 12 months 
   • Loan & Withdrawal Facility: Both premature withdrawal and a loan against the deposit 

5. 20:20 Deposit

   This is a unique, short-term fixed deposit with a specific tenure of 20 months and 20 days. It offers competitive interest rates and is a good option for investors looking for a medium-term investment with flexible payout options.

   Benefits:

   • Unique Tenure: 20 months and 20 days
   • High Loan-to-Value Ratio: up to 90% of your deposit amount
   • Flexible Payouts: monthly or quarterly basis

Key Features of Tamilnad Mercantile Bank Fixed Deposits

The following are some of the most attractive benefits of booking Fixed Deposits offered by Tamilnad Mercantile Bank (TMB):

• Loan or Overdraft Facility from TMB: Tamilnad Mercantile Bank allows depositors to avail loans or overdrafts up to 90% of the FD value, without the need to break the deposit.
• Premature Withdrawal: Fixed Deposits can be closed before maturity (allowed as per TMB Policy). In such cases, interest may be paid at a lower rate, and a penalty may apply as per TMB’s rules.
• Monthly/Quarterly/at Maturity Interest: Interest can be received monthly, quarterly, or at maturity, depending on the selected TMB FD scheme.
• Nomination Facility: TMB allows depositors to nominate an individual who can claim the deposit in the event of the account holder’s death.
• Standing Instructions Enabled by TMB: TMB customers can set up standing instructions to transfer interest earnings from the FD directly into a linked TMB savings account.
• Sweep-in and Sweep-out Facility: Tamilnad Mercantile Bank provides a sweep-in and sweep-out facility through its TMB Visa Savings Bank Account. When the account balance exceeds a set threshold, the surplus is automatically transferred into a linked FD. 

How to Open a Tamilnad Mercantile Bank FD

A Tamilnad Mercantile Bank (TMB) fixed deposit is a traditional and secure way to earn returns on your savings. TMB offers a variety of FD schemes that you can open through convenient online and offline channels.

1.  Online FD Account Opening

   If you are an existing TMB customer, the online process is fast and simple, allowing you to open an FD from the comfort of your home using internet banking or the mobile app.

   • Log in to e-Banking: Access the TMB e-Connect portal or the TMB MBank app 
   • Navigate to Fixed Deposits: In the main menu, go to the "Deposits" or "Fixed Deposits" section
   • Fill in Details: Enter the deposit amount, choose the tenure, and select your preferred interest payout option
   • Review and Confirm: Verify all the information you have entered, accept the terms and conditions, and submit the request.
   • Get FD Receipt: An e-TDR will be instantly generated and sent to your email. 

2.  Offline FD Account Opening

   For new customers or those who prefer a physical process, you can open an FD account by visiting any TMB branch.

   • Visit the Branch: Go to your nearest TMB branch with your documents 
   • Fill out the Form: Request a Fixed Deposit application form 
   • Fill Application - Fill in your details, including the deposit amount, tenure, scheme type, and interest payout frequency.
   • Submit Documents: Provide the filled-out form along with self-attested copies of your KYC documents.
   • Deposit Funds: You can fund the deposit by cheque, Demand Draft, or cash at the bank counter.
   • Receive FD Receipt: A Term Deposit Receipt will be issued as proof 

Eligibility Criteria 

All indian Citizens can open the Tamilnad Mercantile Bank FD. Some more people who are eligible for the same are - 

• Individuals, 
• Hindu Undivided Families (HUFs), 
• sole proprietorships, 
• trusts, 
• limited companies, etc

Key Takeaways

Tamilnad Mercantile Bank offers Fixed Deposits with tenures from 7 days to 10 years, making them ideal for both short- and long-term savings. You can start with as little as ₹1,000, choose monthly, quarterly, or maturity payouts, and even get a loan against your FD. Senior citizens get extra interest on eligible tenures. However, FDs have limited liquidity; early withdrawals may attract penalties, and the returns may not always beat inflation. Still, they remain a safe option for low-risk investors.