Tamilnad Mercantile Bank FD Interest Rates 2025

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. 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. Read on to explore the latest Tamilnad Mercantile Bank FD interest rates and their key benefits.

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. If the balance falls below the minimum limit, the required amount is automatically reversed from the FD back into the savings account without breaking the FD.

Tamilnad Mercantile Bank FD Interest Rates 

Tamilnad Mercantile Bank FD rates vary depending on the deposit amount, tenure, and whether the deposit is callable or non-callable.

Tamilnad Mercantile Bank FD Interest Rates 2025 (Callable Deposits – Below ₹3 Crores)

*Tamilnad Mercantile Bank FD interest rates w.e.f. April 18, 2025

Tamilnad Mercantile Bank FD Interest Rates (Non-Callable – Below ₹3 Crores)

*Tamilnad Mercantile Bank FD interest rates w.e.f. April 18, 2025

Tamilnad Mercantile Bank FD Interest Rates 2025 (Callable Deposits ₹3 Cr to <₹25 Cr)

*Tamilnad Mercantile Bank FD interest rates w.e.f. May 23, 2025

To explore comparative options, check the best FD interest rates in India.

How to Open a Tamilnad Mercantile Bank FD

Opening a Fixed Deposit (FD) with Tamilnad Mercantile Bank (TMB) is simple and can be done through both online and offline channels. Whether you are a new or existing customer, the bank offers convenient ways to start investing securely and earn stable returns.

1. Online Method

   For Existing Customers:

   • Visit the TMB Internet Banking portal or use the mobile banking app.
   • Log in using your customer ID and password.
   • Navigate to the Fixed Deposit section.
   • Select ‘Open Fixed Deposit’ or ‘Create New FD’.
   • Enter the deposit amount, choose the tenure (7 days to 10 years), and select the interest payout mode (monthly/quarterly/cumulative).
   • Add nominee details and confirm your submission.
   • Your FD will be booked instantly, and a confirmation message will be sent via SMS/email.

   For New Customers:

   • Visit the TMB official website and choose the Digital Banking services.
   • Complete the online KYC process (by uploading documents or via video KYC).
   • Fill out the FD application form with the deposit amount, tenure, nominee details, etc.
   • Make the payment through UPI/net banking to activate your FD.
   • Receive an instant confirmation and FD receipt via email.

2. Offline Method

   For Both New and Existing Customers:

   • Visit the nearest Tamilnad Mercantile Bank branch.
   • Ask for the Fixed Deposit application form.
   • Fill in the required details: deposit amount, tenure, nominee, and interest payout preference.
   • Submit your KYC documents (for new customers only).
   • Make the payment via cash, cheque, or TMB account transfer.
   • You will receive an FD receipt and confirmation from the branch.

Documents Required for Tamilnad Mercantile Bank FD

If you are opening an FD as a new customer, you’ll need the following documents:

• Proof of Identity: Aadhaar, PAN card, Passport, Voter ID, or Driving Licence
• Proof of Address: Aadhaar, Passport, utility bill, or updated bank statement
• Recent Photograph: Passport-size photo for offline applications
• PAN Card: Mandatory for tax and TDS purposes
• KYC Compliance: Either through digital methods (online) or physical submission (offline)
• Bank Account Details: For interest credit and maturity proceeds

Taxation on Tamilnad Mercantile Bank FD Interest

Interest earned on Fixed Deposits with Tamilnad Mercantile Bank is fully taxable under the head “Income from Other Sources” as per the Income Tax Act, 1961. If the total interest earned in a financial year exceeds ₹50,000 for regular individuals and ₹1,00,000 for senior citizens, the bank deducts Tax Deducted at Source (TDS) at 10%, provided your PAN is submitted.

If PAN is not provided, TDS is deducted at a higher rate of 20%. To avoid this deduction, eligible depositors can submit Form 15G (for non-senior citizens) or Form 15H (for senior citizens), declaring that their total income is below the taxable limit.

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.