Interest Rates
4.00% – 7.40%
Time Period
7 days to 120 months
Min - Max Amount
1,000 - No upper limit
Compounding
Quarterly
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₹ 10,000
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Tamilnad Mercantile Bank Limited (TMB), a pioneering private sector bank in India, traces its origins back to 11 May 1921, when it was established as Nadar Bank Limited in Thoothukudi, Tamil Nadu. Conceived during the Anniversary of the Nadar Mahajana Sangam in Tuticorin in 1920, the bank was founded under the guidance of the Nadar business community to address the financial needs of the local populace.
Shri P. Shanmugavel Nadar served as its first Chairman, and the inaugural branch was opened by Shri T.V. Balagurusamy Nadar, the then President of the Nadar Mahajana Sangam. Initially capitalised at a modest ₹5 lakhs, the bank swiftly demonstrated its resilience and commitment to shareholders by declaring a 6% dividend in its very first year, a tradition it has upheld consistently, making it the only bank in India to do so without interruption over a century.
Tenure | Regular Rate (p.a.) | Senior Citizen Rate (p.a.) |
7 - 14 days | 4.00% | 4.00% |
15 - 29 days | 4.50% | 4.50% |
30 - 45 days | 5.00% | 5.00% |
46 - 90 days | 5.50% | 5.50% |
91 days - less than 6 months | 6.00% | 6.50% |
6 months - less than 9 months | 6.50% | 7.00% |
9 months - less than 1 year | 6.80% | 7.30% |
1 year - less than 2 years | 7.00% | 7.50% |
2 years - less than 3 years | 7.20% | 7.70% |
3 years and above | 7.10% | 7.60% |
Note: The data is as of August 25, 2025
Tenure | Regular Rate (p.a.) | Senior Citizen Rate (p.a.) |
7 - 14 days | 4.00% | 4.00% |
15 - 29 days | 4.25% | 4.25% |
30 - 45 days | 4.75% | 4.75% |
46 - 90 days | 5.25% | 5.25% |
91 days - less than 6 months | 5.75% | 6.25% |
6 months - less than 9 months | 6.25% | 6.75% |
9 months - less than 1 year | 6.50% | 7.00% |
1 year - less than 2 years | 6.80% | 7.30% |
2 years - less than 3 years | 6.90% | 7.40% |
3 years and above | 6.75% | 7.25% |
Note: The data is as of August 25, 2025
Tamilnad Mercantile Bank (TMB) Fixed Deposits (FDs) stand out for their reliability and attractive returns, making them a cornerstone for conservative investors seeking capital preservation with steady income. One key feature is the flexibility in tenures, ranging from a mere 7 days to 120 months, allowing depositors to align investments with short-term goals or long-term planning. Interest payout options, monthly, quarterly, half-yearly, or at maturity, cater to diverse liquidity needs, with quarterly compounding maximising earnings for longer tenures.
A significant benefit is the loan facility against FDs, offering up to 90% of the deposit value at competitive rates, providing emergency access without breaking the deposit. Nomination facility ensures seamless transfer to heirs, while auto-renewal options simplify reinvestment.
The cornerstone of TMB's FD portfolio is the Basic Fixed Deposit Account, one of the bank's earliest offerings. This scheme accommodates deposits from ₹1,000 with no upper ceiling, spanning tenures from 7 days to 120 months. Interest is calculated on a simple basis for short terms and compounded quarterly for longer durations, payable monthly, quarterly, or at maturity. A standout feature is the standing instruction for automated interest credits to a linked savings account, ideal for regular income seekers.
For senior citizens aged 60 and above, the Santhosh Fixed Deposit Scheme provides enhanced returns with an extra 0.50% p.a. over standard rates, applicable across tenures. Minimum deposit mirrors the basic scheme at ₹1,000, but it includes priority customer service and waived processing fees for loans against the deposit. This variant addresses retirement corpus needs, offering compounded growth and flexible payouts to supplement pensions. Its simplicity and superior yields make it a preferred choice for elderly depositors seeking hassle-free wealth preservation.
Tax-conscious savers benefit from the Tax Saving Fixed Deposit (TSD - Malligai Scheme), eligible for deductions under Section 80C of the Income Tax Act up to ₹1.5 lakh annually. Locked for a mandatory 5-year tenure, it requires a minimum ₹100 deposit in multiples of ₹100, with cumulative interest paid at maturity to optimise tax benefits. No premature withdrawal is allowed, ensuring disciplined saving. Senior citizens receive the additional rate, and PAN is mandatory for Form 15G/H exemption claims.
The Muthukuvial Fixed Deposit Scheme targets higher-yield seekers with deposits from ₹1,000 and tenures up to 10 years. It features quarterly compounding and monthly interest withdrawal options, appealing to those needing periodic cash flows. A unique transferability clause allows seamless movement of the deposit to another branch or nominee without penalty, enhancing portability. Loans are readily sanctioned, and the scheme's competitive rates, often 0.25% above basic, position it as a robust option for mid-term goals like education funding.
Cash Certificate Scheme emphasises long-term commitment with tenures from 1 to 10 years and minimum ₹1,000 investments. Interest is reinvested for compounding, yielding higher effective returns at maturity. Ideal for lump-sum planners, it offers nomination and loan facilities but levies a 1% penalty on early closure. This scheme's focus on capital appreciation suits investors eyeing inflation-beating growth.
Tamilnad Mercantile Bank's (TMB) Fixed Deposit rates vary by tenure to incentivise longer commitments while accommodating short-term parking needs. For deposits below ₹3 crore, short-term options (7-45 days) offer 4.00%-5.00% p.a. for general public, rising to 5.50% for 46-90 days, providing modest yields for liquidity-focused savers.
Medium tenures (91 days to <1 year) see escalation to 6.00%-6.80%, with seniors gaining 0.50% extra, suiting emergency funds. One-year marks a sweet spot at 7.00%, extending to 7.20% for 1-2 years and 7.30% for 2-3 years, balancing growth and accessibility.
Beyond three years, rates stabilise at 7.10%, encouraging retirement planning. Bulk deposits (₹3 crore+) command slightly lower premiums, starting at 4.00% short-term to 6.90% mid-term, reflecting volume discounts. These tiered structures, effective from quarterly reviews, ensure competitive positioning, with compounding amplifying long-term returns, e.g., a ₹1 lakh 5-year FD at 7.10% yields approximately ₹1.43 lakh at maturity. Investors should leverage TMB's calculator for precise projections, aligning tenures with goals for optimal earnings.
| Tenure | Institution Name | Interest Rate (% p.a.) |
|---|---|---|
| 2 years - less than 3 years | 7.20› |
 | 999 days | 6.70› |
 | 1,000 days | 6.70› |
 | 24 Months 1 Day to 36 Months | 7.10› |
 | 15 months to less than 2 years | 6.70› |
The data is as of August 25, 2025
Existing customers log into TMB's secure portal or download the mBank app from Google Play/App Store. Navigate to the 'Deposits' section, select 'Fixed Deposit', and choose the scheme (e.g., Basic, Tax Saving). Enter details: deposit amount (minimum ₹1,000, multiples of ₹100), tenure (7 days-120 months), interest payout frequency (monthly/quarterly/maturity), and nominee information. Review the projected maturity value using the built-in calculator, confirm KYC (Aadhaar/PAN-linked), and authorise debit from the linked account via NEFT/RTGS/IMPS.
The mBank app streamlines with biometric authentication, allowing photo uploads for documents if needed. It supports auto-renewal toggles and loan applications against FDs in-app.
Opening a Tamilnad Mercantile Bank (TMB) FD account is accessible to a broad spectrum of individuals and entities. Resident Indians aged 18+ qualify, including minors through guardians. Senior citizens (60+) receive preferential rates. Hindu Undivided Families (HUFs) and sole proprietorships are eligible via Karta/owner. NRIs can opt for NRE/NRO/FCNR variants, subject to RBI guidelines.
To open a TMB FD account, submit Officially Valid Documents (OVDs) for KYC compliance. Identity proofs include PAN (mandatory), Aadhaar, Voter ID, Passport, or Driving Licence. Address verification accepts Aadhaar, utility bills (not older than 3 months), bank statements, or rental agreements. For seniors, pension orders suffice. NRIs need Passport, OCI/PIO card, and overseas address proof. HUFs require HUF PAN and deed; minors need birth certificate and guardian's documents.
Interest earned on TMB Fixed Deposits is taxable as "Income from Other Sources" under the Income Tax Act, added to total income and taxed per slab rates, ranging from 5% to 30% plus cess for FY 2025-26. For instance, a ₹10 lakh FD at 7% yields ₹70,000 annually, taxable at the depositor's bracket.
TDS (Tax Deducted at Source) kicks in at 10% if interest exceeds ₹40,000 (₹50,000 for seniors) per FY, deducted quarterly/monthly. Form 15G/H submission (for income below exemption limit) waives TDS for eligible individuals below 60 (15G) or seniors (15H).
Premature closure of TMB FDs is permitted after 7 days, except for 5-year Tax Saving schemes (prohibited). For tenures under 180 days, no interest is paid; beyond, applicable rate minus 1% penalty applies. Bulk deposits (>₹3 crore) may negotiate terms. Requests process at branches/apps within 2-3 days, with funds credited post-deduction. Seniors retain extra rate if eligible. This flexibility aids liquidity without full forfeiture, though TMB advises against frequent breaks to preserve compounding benefits.
