Tamilnad Mercantile Bank FCNR Rates
Below are the latest FCNR deposit interest rates according to currency and tenure with effective 10th June 2026:
| 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 below 1 Lakh |
5.10 |
4.00 |
7.00 |
7.00 |
7.00 |
| USD 1 Lakh & above |
5.50 |
4.15 |
7.00 |
7.00 |
7.00 |
| GBP |
3.80 |
3.80 |
7.00 |
7.00 |
7.00 |
| EUR |
2.50 |
2.25 |
3.50 |
3.50 |
3.50 |
| CAD |
4.00 |
3.75 |
3.75 |
3.50 |
3.50 |
| JPY |
0.50 |
0.50 |
0.50 |
0.50 |
0.50 |
*Tamilnad Mercantile Bank FCNR Rates w.e.f. 10th June 2026. FCNR (B) deposits in USD, EUR, and GBP (from 3years to 5 years) have a strict 1-year lock-in period; no premature closures are allowed during this first year.
Key Features of Tamilnad Mercantile Bank FCNR Deposits
The Tamilnad Mercantile Bank FCNR (B) rates offer a unique set of advantages designed to maximise returns for NRIs. Below are the primary benefits of the interest rates associated with this account:
-
Tax-Free Returns
The most significant benefit is that the interest earned on TMB FCNR (B) deposits is 100% exempt from Indian Income Tax. Unlike NRO accounts, there is no Tax Deducted at Source, allowing you to keep the full amount of interest earned.
-
Compounded Growth
For any deposit held for more than one year, the interest is compounded half-yearly. This means you earn interest on your interest, significantly boosting your total yield over 1 to 5 years.
-
Protection Against Rupee Volatility
Since the interest rates are applied to the foreign currency rather than the Indian rupee, your earnings are protected from the devaluation of the Rupee. You earn in the same currency you deposit, ensuring your global purchasing power remains intact.
-
Higher Yields via "FCNR Plus"
Tamilnad Mercantile Bank offers an exclusive FCNR Plus scheme that provides a "better yield" than standard FCNR accounts.
- By booking a forward purchase contract at the time of deposit, you can lock in a favourable exchange rate for the future.
- Upon maturity, the foreign currency is converted to Rupees at a pre-fixed higher rate, often resulting in returns superior to those of traditional NRE deposits.
-
Full Repatriability
Both the principal and the interest earned at these competitive rates are fully and freely repatriable. You can transfer the entire balance back to your overseas bank account at any time.
-
Competitive Global Rates
TMB adjusts its FCNR rates periodically in line with international benchmarks, ensuring your money earns a competitive rate aligned with global market standards for that currency.
Conclusion
Tamilnad Mercantile Bank FCNR account offers NRIs a combination of high-yield growth and capital protection. By providing tax-free interest, multi-currency flexibility, and full repatriation, TMB ensures that your global earnings remain both secure and accessible. Whether you are looking for tax-efficient savings or a hedge against currency fluctuations, this account serves as an ideal financial bridge for managing your international wealth in India.
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