Tamilnad Mercantile Bank Senior Citizen FD Rates 2025

What is a Tamilnad Mercantile Bank Senior Citizen FD?

Tamilnad Mercantile Bank Senior Citizen Fixed Deposit (FD) is a specialised deposit scheme designed exclusively for individuals aged 60 years and above. Tamilnad Mercantile Bank provides monthly, quarterly, half-yearly, or cumulative interest payout options, allowing senior citizens to pick income frequencies that match their retirement lifestyle. Check the latest Tamilnad Mercantile Bank FD interest rates to get a better picture of how senior citizens get more benefits than regular depositors. Let’s take a detailed look at the latest senior citizen FD interest rates, key features, and the step-by-step process for booking a Tamilnad Mercantile Bank FD.

Key Benefits of Tamilnad Mercantile Bank Senior Citizen FDs

Tamilnad Mercantile Bank senior citizen FD rates bring various advantages tailored for senior citizens. Some of these include:

1. Minimum Deposit of ₹1,000: 

   Start a senior citizen FD with as little as ₹1,000, making the scheme accessible to a wider section of elderly depositors across the country.

2. Flexible Tenure Options: 

   With Tamilnad Mercantile Bank, senior citizens can choose FD tenures from 7 days to 10 years, making it easy to plan for both short-term needs and long-term financial goals.

3. Premature Withdrawal Facility: 

   TMB allows early FD closure with a flat 1% interest rate penalty, providing financial flexibility in emergencies without completely losing out on earned interest.

4. DICGC Insurance Cover: 

   All FDs at Tamilnad Mercantile Bank are insured up to ₹5 lakh under the DICGC scheme, giving senior citizens security and peace of mind for their life savings.

5. Sweep-in with TMB Santosh Account: 

   Senior citizen depositors can use the sweep-in facility to link their fixed deposits with the TMB Santosh Savings Account. It lets them enjoy the dual benefit of the best FD interest rates and liquidity.

Tamilnad Mercantile Bank Interest Rates for Senior Citizens

Check the latest returns offered on Tamilnad Mercantile Bank fixed deposits to stay informed about current Tamilnad Mercantile Bank FD interest rates for senior citizens.

Tamilnad Mercantile Bank FD Rates (Less than ₹3 Crore)

*Tamilnad Mercantile Bank FD interest rates w.e.f. April 18, 2025
*Senior Citizen Rates do not apply to NRIs

How to Open a Tamilnad Mercantile Bank Senior Citizen FD

Here’s how you can open a Tamilnad Mercantile Bank Senior Citizen FD both online and offline:

1. Online Method

   • Log in to Internet Banking or Mobile App: Use your Tamilnad Mercantile Bank credentials to access the secure digital banking platform.
   • Select 'Fixed Deposits' Option: Navigate to the “Apply Online” section and click on the Fixed Deposits option from the menu.
   • Choose FD Scheme & Tenure: Pick the senior citizen FD plan and select the deposit duration that suits your financial goals best.
   • Enter Deposit Amount: Enter the desired amount for your FD, starting with a minimum of ₹1,000 or more.
   • Select Interest Payout Option: Choose between cumulative interest (paid at maturity) or periodic payouts – monthly, quarterly, or annually as preferred.
   • Provide Nominee Details and Verify: Enter nominee information, double-check all details, and submit for verification to complete the process securely.
   • Confirm and Create FD: Review the confirmation screen and complete the process. You will receive immediate confirmation via SMS or email.

2. Offline Method

   • Visit a Branch: Go to the nearest Tamilnad Mercantile Bank branch with valid ID and address proof documents for verification.
   • Obtain and Fill Form: Ask for the fixed deposit application form and fill in your personal and FD-related details carefully.
   • Choose Senior Citizen FD Scheme: Select the specific senior citizen FD option, including your preferred tenure and interest payout frequency.
   • Submit Deposit Amount: Hand over the deposit amount either through cash or cheque along with the completed form and supporting documents.
   • Collect FD Receipt: Once your fixed deposit is processed, collect the FD receipt containing transaction details and terms of your investment.

Taxation on Tamilnad Mercantile Bank Senior Citizen FD Interest

Interest earned on Tamilnad Mercantile Bank Senior Citizen FDs is fully taxable as per your applicable income slab under the Income Tax Act. From April 1, 2025, TDS is deducted only if the total interest in a financial year exceeds ₹1 lakh. Senior citizens can avoid TDS by submitting Form 15H if their total income is below the taxable threshold. Additionally, under Section 80TTB, they can claim a deduction of up to ₹50,000 on interest income from fixed deposits.

Key Takeaways

Tamilnad Mercantile Bank senior citizen FD rates range from 4.10% to 7.80% p.a., making them among the most competitive in the market. The bank offers particularly attractive rates for medium-term deposits such as 1-year, 400-day, and 2-year tenures, making it a strong option for retirees. Additionally, tax-saver FDs can help build a more tax-efficient retirement portfolio. All deposits are insured up to ₹5 lakh under the RBI’s DICGC scheme, adding an extra layer of security. It’s important to note that while these deductions help reduce taxable income, the interest earned on FDs remains fully taxable.