Tamilnad Mercantile Bank is one of the old private banks in India, started back in 1921. Even today, the bank works mostly on customer trust and strong branch relationships, not just apps or online campaigns.
That trust clearly shows in numbers too—till December 31, 2025 (Q3 FY26), TMB’s total deposits stood at ₹56,707 crore, built slowly over the years by long-term customers.
Like every bank, TMB changes FD rates when needed, depending on inflation, RBI policy, and market situation. The latest FD rate update came on January 8, 2026.
As per the current structure, TMB is offering fixed deposit interest starting from 4.00% per year and going up to 7.10% per year for regular customers.
For senior citizens, the maximum interest rate is 7.50% per year due to an extra benefit of 0.10% to 0.50%.
Right now, the 456 Days Special Deposit Scheme is the best FD option from TMB. In this scheme, normal customers get 7.10% interest, while senior citizens earn 7.50% interest for 456 days. No tricks, no confusing terms.
Tamilnad Mercantile Bank FD Features
| Feature | Details |
|---|---|
| Minimum Deposit | ₹1,000 |
| Maximum Deposit | No upper limit |
| Minimum Tenure | 7 days |
| Maximum Tenure | Up to 10 years |
| Interest Rate (General) | 4.00% to 7.10% per year |
| Interest Rate (Senior Citizens) | Up to 7.50% per year for Age above 60. |
| Loan Facility | If needed, investors can take a loan or overdraft up to 90% of their FD amount. So your money stays in an FD, and you still get cash when an emergency comes. Simple. |
| Safety | Deposits are insured up to ₹5 lakh by DICGC and regulated by the RBI, so capital safety is high. |
| Tax Saver FD Lock-in | 5 years |
| Deposit size categories | Retail deposits (below ₹3 crore) and Bulk deposits (₹3 crore and above) |
| Rates changes | FD rates can change based on callable or non-callable option, deposit amount, and tenure. |
| Premature Withdrawal Rules | 1% penalty after opening and Non-callable FDs: No premature withdrawal at all |
This FD suits people who want safe returns and peace of mind, not daily stress from market ups and downs.
FD Interest Rates chart (Callable FDs below ₹1 crore)
These are the latest FD rates for 2026, and they apply only to callable fixed deposits. The rates shown here are valid for FD amounts below ₹1 crore. If your deposit amount is ₹1 crore to ₹3 crore or more, the bank follows a different rate structure. These rates applies both senior and general citizens.
| Period | Regular (%) | Senior (%) | Human Tip |
|---|---|---|---|
| 7 – 14 days | 4.00 | 4.00 | Lowest rate, only for emergency parking |
| 15 – 29 days | 4.25 | 4.25 | Slightly better, still short-term |
| 30 – 45 days | 4.50 | 4.50 | Okay for 1-month holding |
| 46 – 60 days | 4.80 | 4.80 | Small improvement |
| 61 – 90 days | 4.80 | 4.80 | Same return, not much benefit |
| 91 – 120 days | 5.80 | 5.80 | First decent jump in interest |
| 121 – 179 days | 5.80 | 5.80 | Same as above, stable |
| 180 – 270 days | 6.30 | 6.30 | Good for 6–9 months planning |
| 271 days to < 1 year | 6.40 | 6.40 | Better than most savings options |
| 1 year | 6.80 | 7.30 | Senior citizens get clear extra benefit |
| Above 1 year to < 456 days | 6.80 | 7.30 | Same as 1 year, safe zone |
| 456 days (Special FD) | 7.10 (Highest) | 7.50 | Best FD rate right now |
| Above 456 days to < 2 years | 6.60 | 7.10 | Lower than 456 days |
| 2 years to < 3 years | 6.60 | 7.10 | Stable but not the highest |
| 3 years to 10 years | 6.60 | 7.10 | Long-term safety, not for max return |
Simple Tips (Real World-Based)
- Callable FD means you can break the FD if needed
- Senior citizen extra interest mostly applies from 1 year and above
- Rates shown are for Domestic & NRO FDs below ₹1 crore
- Very short-term FDs give low returns
- Long-term FDs are for safety, not high interest
Easemoney Insight For You: With TMB, mid-term FDs (around 9–15 months) give the best value. Locking money for 5–10 years doesn’t really pay extra, so shorter tenures are a smarter choice here.
Non-Callable FD Interest Rates (Above ₹1 Crore)
Non-callable FD = you cannot break it before maturity. In return, the bank gives slightly higher interest.
| Period | General (%) | Senior Citizens (%) | Simple Note |
|---|---|---|---|
| 1 year | 7.30% | — | Higher than normal 1-year FD |
| Above 1 year to < 456 days | 7.30% | — | Same rate, no flexibility |
| 456 days | 7.50% | — | Highest non-callable rate |
| Above 456 days to < 2 years | 7.10% | 7.20% | Rate drops after 456 days |
| 2 years to < 3 years | 7.10% | 7.20% | Stable but not best |
| 3 years to 10 years | 7.10% | 7.20% | Long lock-in, same return |
Who should go for this?
- Only people who are 100% sure they won’t need money
- Big investors are okay with no emergency withdrawal
- Not suitable if you need liquidity or flexibility
Simple Easemoney Take
- 456-day non-callable FD is the sweet spot
- Locking money longer does not give an extra benefit
- More interest, yes — but zero exit option
TMB Bank Fixed Deposit: Different Types Explained
In 2026, Tamilnad Mercantile Bank offers simple fixed deposit options for regular income, long-term savings, and tax benefits.
1. TMB Basic Fixed Deposit Account
Tamilnad Bank Basic Fixed Deposit is the most used FD by TMB customers. It’s a normal lump-sum FD made for people who want a fixed income without confusion.
- Deposit period: 15 days to 10 years
- Interest type: Simple interest
- Interest payout: Monthly or Quarterly
- Premature withdrawal: Allowed (penalty applies)
- Loan facility: Available against FD
- Standing instruction: Supported
- Nomination: Available
This FD is easy to open and easy to manage. You deposit money once and earn fixed interest without daily tension.
Who should go for this?
- Salaried employees
- Small shop owners
- Families who need a monthly or quarterly income
- Anyone looking for safe parking for money
Easemoney Tip (Read This)
If you are planning to open a normal FD, don’t lock your money for many years without checking special schemes. TMB often gives better returns for short and mid-term deposits.
- TMB 456 Special Deposit Scheme – This is the best FD option, and this is limited time offer as per the bank. It comes with a 456-day tenure, where regular customers earn 7.10% interest, and senior citizens get 7.50% interest. This scheme gives higher returns without long lock-in.
- TMB 400 Special Scheme – This FD is for 400 days and offers around 6.90% interest for general customers and about 7.40% for senior citizens. It suits people who want good returns but don’t want to block money for too long.
Senior Citizen FD – Where Extra Interest Actually Helps
The Bank gives 0.10% to 0.40% extra interest to resident senior citizens on fixed deposits. It may look small on paper, but in real life, it makes a difference.
Simple Example
- FD Amount: ₹10,00,000
- Tenure: 456 days
- Senior Citizen Rate: 7.50%
Monthly interest comes around ₹6,250 (before tax)
For many retired people, this is not extra income; this is regular support. This money helps with:
- Monthly household expenses
- Medical and doctor bills
- Filling the gap left by low pension
2. TMB Muthukuvial Deposit Account (Cumulative FD)
Muthukuvial FD is for people who don’t need a monthly income. This FD is made for long-term saving, where interest keeps adding, and you get the full money at the end.
Simple features
- Time selection: 1 year to 10 years
- Interest type: Compounding
- Interest payment: Only at maturity
- FD can be broken early (penalty applies)
- Loan available against FD
- Nomination facility available
Who should take this FD
- Parents saving for children’s education
- People planning for future big expenses
- Anyone who wants money to grow quietly over time
In short, this FD is for saving now and taking a big amount later, without daily tension.
3. Tax Saving Fixed Deposit (80C)
This FD is only for tax savings. It is not a flexible FD, so open it only when you are fully sure.
Two simple options
- Malligai: Interest comes monthly, quarterly, half-yearly, or yearly – You can any one.
- Mullai: Your interest keeps adding, and the full amount comes at the end. when it closed.
Important things to know
- Lock-in is 5 years, money cannot be touched
- Eligible for Section 80C tax savings
- Maximum investment is ₹1.5 lakh
- Interest is taxable
- No premature withdrawal
- No loan against this FD
Easemoney Practical Tip
Use this FD only if you are 100% sure you will not need the money for 5 full years. Once you put money, forget it till maturity.
Let’s take an example – Ramesh runs a small shop in his village. In 2026, his yearly income was around ₹9 lakh. He had to pay tax on this income. To save tax, he put ₹1.5 lakh in TMB Tax Saving FD under 80C. Because of this, his taxable income was reduced, and he saved around ₹36,000 in tax under the old tax system.
This saving mattered to him. He used that money for:
- children’s school books
- medicines at home
- festival expenses
Ramesh invested after thinking properly. So he got tax savings + safe FD return, without daily tension.
4. TMB Pearl Deposit Account
Pearl Deposit is a mix-type FD. Part of the interest keeps growing, and part you can withdraw regularly. It suits people who want some income now and some growth for later.
Simple features –
- Tenure: 1 year to 10 years
- Interest type: Compounding
- Interest withdrawal: Every 3, 6, or 12 months
- Premature withdrawal: Allowed
- Loan against FD: Available
- Standing instruction: Available
Best For –
- Retired people
- Those who need regular cash but also want the FD to grow
- People who don’t want a full interest payout like a normal FD
Basic FD vs Pearl FD (Simple Difference)
- In Basic FD, interest is paid fully every month or quarter.
- In Pearl FD, some interest comes to you, and some stays inside and grows.
Simple choice:
- Want income + growth → Pearl FD
- Want full, regular income → Basic FD
5. 20:20 Deposit Scheme (Cricket Inspired)
TMB 20:20 is a special fixed-tenure FD made for people who want a clear medium-term lock-in, not too short and not too long.
- Tenure: 20 months and 20 days
- Minimum deposit: ₹1,000
- Interest payout: Monthly or Quarterly
- Loan facility: Up to 90% of the FD amount
- Premature withdrawal: Allowed (penalty applies)
This FD suits customers who already know how long they can keep money locked and want a fixed plan without confusion.
Quick comparison:
- Basic FD: Regular monthly income, no growth inside.
- Pearl FD: Some income + some interest grows.
- 20:20 FD: Fixed tenure, predictable return, middle option between short and long term.
TDS & PAN Rules You Should Know
- PAN is mandatory if your yearly FD interest crosses: ₹40,000 for regular customers and ₹50,000 for senior citizens
- If PAN is not submitted, the bank will deduct 20% TDS, even if your income is low.
- Form 15G / Form 15H without PAN is not valid in 2026.
Submitting the form without PAN will not stop TDS.
What Makes TMB FD Different From Other Banks
Tamilnad Mercantile Bank does not change FD rates again and again just to look attractive. The bank keeps things steady and simple.
- Rates depend more on the FD period, not on short-term offers
- Senior citizens are given proper importance, not just an extra few points
- Special FD schemes come only sometimes, not every year
- Long-term FDs are available, but returns are kept normal, not exaggerated
Because of this, TMB FDs are good for families who want safe banking, clear rules, and branch help, not for people who keep running after the highest rate every few months.
FAQs
Does TMB offer special FD schemes?
Yes. TMB offers special FD schemes like 456 days, 400 days, and 444 days. These give higher interest but run for limited time. Always confirm with branch before booking.
What is the FD interest rate in TMB right now?
As of February, TMB FD rates range from 4.00% to 7.10% for regular citizens and up to 7.50% for senior citizens, depending on tenure and scheme.
What is the maximum limit for the TMB fixed deposit?
There is no upper limit for TMB FD investment. Deposits below ₹3 crore follow retail rates, while deposits above ₹3 crore are treated as bulk deposits with separate rules.
Does TMB provide an FD calculator?
TMB does offer an advanced online FD calculator. Also, Customers usually calculate maturity manually or with bank staff, especially for monthly interest and senior citizen payout planning.
What is TMB FD interest rate for 400 days?
TMB 400-day FD interest rate depends on the active special scheme. When available, rates are usually slightly lower than 456-day FD. Exact rate must be confirmed at branch.
What is the FD interest rate in TMB for 300 days?
For around 300 days, TMB FD interest generally falls in the 6.30% to 6.50% range. Senior citizens usually get around 0.10% extra benefit.
Is TMB FD safe for village and senior citizens?
Yes. TMB is a 100+ year old private bank. Deposits up to ₹5 lakh are insured by DICGC, making it suitable for village families and senior citizens.
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