What is the minimum tenure for a TMB FCNR deposit?

The minimum tenure is 1 year. No interest is paid for premature closure before one year.

Is the interest earned on FCNR deposits taxable in India?

No, interest earned on FCNR deposits is exempt from Indian income tax.

Can I prematurely close my FCNR deposit?

Yes, but if closed before 1 year, no interest is payable.

Tamilnad Mercantile Bank FCNR Rates

For Non-Resident Indians (NRIs) seeking secure and tax-efficient savings options, Foreign Currency Non-Resident (FCNR) deposits have become increasingly popular. Tamilnad Mercantile Bank (TMB) offers competitive FCNR rates and a suite of deposit schemes to help NRIs maximize returns in various foreign currencies. This article explores the latest FCNR rates at TMB, the features of these deposit accounts, and addresses common queries related to FCNR products.

Returns as high
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Completely Tax free⁺

Maximum returns Offered by Guaranteed

Highest

6.9%^*

Guaranteed Plan

(by insurance companies)

(10 Years)

6.5%^**

Fixed Deposits

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(5-10 Years)

6.9%^***

Public Provident Fund

(other popular options)

(15 Years)

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What Are FCNR Deposits?

FCNR (B) deposits let NRIs invest their foreign earnings in India, maintained in major global currencies such as USD, GBP, EUR, CAD, AUD, JPY, and CHF. Deposits are insulated from currency risk and interest earned is typically exempt from Indian income tax, making these accounts especially attractive to overseas Indians.

Tamilnad Mercantile Bank FCNR Rates

Below are the latest FCNR deposit interest rates according to currency and tenure:

Currency	1 year but less than 2 years	2 years and above but less than 3 years	3 years and above but less than 4 years	4 years and above but less than 5 years	5 years only
USD less than 1 Million	5.25%	4.40%	4.00%	3.75%	3.75%
USD 1 Million and above	5.25%	4.40%	4.00%	3.75%	3.75%
GBP	3.80%	3.80%	3.75%	3.85%	3.85%
EUR	2.50%	2.50%	2.45%	2.55%	2.55%
CAD	4.25%	4.25%	4.25%	4.25%	4.25%
AUD	0.00%	0.00%	0.00%	0.00%	0.00%
JPY	0.25%	0.25%	0.25%	0.25%	0.25%
CHF	0.00%	0.00%	0.00%	0.00%	0.00%

(Effective from 7 August 2025)

Key Features of Tamilnad Mercantile Bank FCNR Deposits

Below are the key features of Tamilnad Mercantile Bank NRI account for FCNR deposits:

No currency risk: Deposits are held in foreign currency throughout the tenure.
Tax exemption: Interest earned is typically tax-free in India.
Flexible tenures: Ranging from 1 year up to 5 years.
Premature withdrawal: No interest is paid if the deposit is closed before completion of one year.
FCNR Plus Account: Offers potentially higher yields using forward contracts (minimum deposit $25,000).

How to Open a TMB FCNR Account

Eligibility: NRIs/PIOs can open FCNR accounts in authorized currencies.
Process: Visit a TMB branch or apply online via official channels.
Required documents: Proof of NRI status, identity, and address documents.

Conclusion

Tamilnad Mercantile Bank offers a diverse range of FCNR options for NRIs, ensuring both attractive returns and safety against currency fluctuations. With tax benefits and competitive rates, TMB FCNR deposits are an ideal choice for NRIs looking to grow their foreign earnings in India.

FAQs

What is the minimum tenure for a TMB FCNR deposit?

The minimum tenure is 1 year. No interest is paid for premature closure before one year.
Is the interest earned on FCNR deposits taxable in India?

No, interest earned on FCNR deposits is exempt from Indian income tax.
Can I prematurely close my FCNR deposit?

Yes, but if closed before 1 year, no interest is payable.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
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++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ ˜Top plans are based on annualized premium, for bookings made through https://www.policybazaar.com in FY 25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

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