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
Tamilnad Mercantile Bank's FCNR (B) rates come with a set of advantages built specifically to help NRIs get more out of their foreign currency holdings. Here's what makes this account worth a look:
- Tax-Free Returns: The biggest advantage is that interest earned on TMB FCNR (B) deposits is entirely exempt from Indian income tax. Unlike NRO accounts, there's no TDS involved, so you keep every rupee (or dollar, pound, euro) of interest earned.
- Compounded Growth: Hold your deposit for more than a year and the interest compounds half-yearly, meaning you start earning interest on your interest, which noticeably boosts your total yield across a 1 to 5 year term.
- Protection Against Rupee Volatility: Because interest is calculated on the foreign currency rather than the rupee, your earnings stay insulated from any rupee depreciation. You deposit in a currency and earn in that same currency, so your global purchasing power holds steady.
- Higher Yields via "FCNR Plus": TMB also runs an exclusive FCNR Plus scheme that offers a better yield than a standard FCNR account. Book a forward purchase contract when you open the deposit, and you lock in a favourable exchange rate in advance. At maturity, your foreign currency converts to rupees at that pre-fixed, higher rate, often outperforming a traditional NRE deposit.
- Full Repatriability: Both the principal and the interest on these deposits can be transferred back to your overseas account in full, at any time.
- Competitive Global Rates: TMB revises its FCNR rates periodically to stay aligned with international benchmarks, so your money keeps earning a rate that holds up against global standards for that currency.
Set against the wider field of investment plans for NRI in India, an FCNR deposit like this one appeals mainly to NRIs who want currency safety and tax-free interest without taking on market risk.
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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