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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.
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Tamilnad Mercantile Bank FD Interest Rates 2025
- Tamilnad Mercantile Bank FCNR Rates
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
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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
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+ Trad plans with a premium above 5 lakhs would be taxed as per
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˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
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