For deposits below ₹3 Crores, Tamilnad Mercantile Bank (TMB) currently offers FD interest rates from 4.00% to 7.25% p.a. for regular customers.
Senior citizens can earn up to 7.70% p.a., while super senior citizens (80 years and above) can receive up to 7.75% p.a. on selected special deposit schemes.
Below is the latest TMB Fixed Deposit Interest Rate Chart updated w.e.f. 10 April 2026.
| FD Tenure | Regular | Senior Citizen | Super Senior |
|---|---|---|---|
| 7 Days – 14 Days | 4.00% | 4.00% | 4.00% |
| 15 Days – 45 Days | 4.25% | 4.25% | 4.25% |
| 46 Days – 90 Days | 4.80% | 4.80% | 4.80% |
| 91 Days – 179 Days | 5.80% | 5.80% | 5.80% |
| 180 Days – 270 Days | 6.30% | 6.30% | 6.30% |
| 271 Days – Less than 1 Year | 6.50% | 6.50% | 6.50% |
| 1 Year | 6.80% | 7.30% | 7.40% |
| 456 Days Special | 7.10% | 7.50% | 7.60% |
| 567 Days Special | 7.25% | 7.70% | 7.75% |
| 2 Years – Less than 3 Years | 7.00% | 7.50% | 7.60% |
| 3 Years – 10 Years | 6.70% | 7.20% | 7.30% |
Latest rates can also be verified on the official TMB Deposit Interest Rates page .
📌 Important TMB FD Rules
- These interest rates apply to Domestic and NRO deposits below ₹3 Crores
- Senior citizens receive an additional interest benefit over regular FD rates
- Super senior citizens aged 80 years and above qualify for higher rates on eligible tenures
- The minimum amount required to open a TMB Fixed Deposit is ₹1,000
- Deposits are protected under DICGC insurance up to ₹5 Lakh per depositor
💡 Savings Tip: Before choosing a long 5–10 year lock-in, compare special tenure schemes with standard deposits. Sometimes a medium-term FD can offer a higher return with greater flexibility.
📌 Quick Insight: TMB’s special deposit schemes currently offer better returns than its standard 1-year and long-term FD categories, making them popular among yield-focused investors.
⚠ Important: TDS may apply if your total annual interest income exceeds ₹40,000 for regular customers or ₹50,000 for senior citizens under prevailing tax rules.
Read Below: Important Rules • Features & Benefits • How To Open a TMB FD • Premature Withdrawal Rules
1. Important TMB FD Rules, Charges and Eligibility
Before opening a Tamilnad Mercantile Bank FD, it is good to understand the basic rules that can affect your returns.
- 1. Who Can Open an FD: Resident individuals, minors (through guardians), HUFs, partnership firms, clubs, and other eligible entities can open a TMB Fixed Deposit.
- 2. Minimum Deposit Amount: Most FDs can be opened with ₹1,000, while the Tax Saver FD starts from just ₹100.
- 3. Premature Closure Penalty: If you break the FD before maturity, the bank may reduce the applicable interest rate by 1.00%.
- 4. FD Closed Within 7 Days: Deposits closed within the first 7 days generally do not earn any interest.
- 5. TDS Rules: TDS may apply if your total FD interest crosses ₹40,000 in a financial year (₹50,000 for senior citizens).
- 6. PAN and Form 15G/15H: Keeping PAN updated helps avoid higher TDS deductions. Eligible customers can also submit Form 15G or Form 15H to prevent unnecessary TDS.
- 7. Loan Against FD: You can usually get a loan or overdraft of up to 90% of the FD amount without breaking the deposit. The interest charged is generally 1% to 2% higher than your FD rate.
📌 Example: If you have a ₹5 lakh FD and need urgent money, you may be able to borrow around ₹4.5 lakh against the FD instead of closing it early and losing interest through premature withdrawal penalties.
2. Types of TMB Fixed Deposit Schemes
Tamilnad Mercantile Bank offers different FD schemes for people looking for long-term growth, regular monthly income, tax savings, or senior citizen benefits.
- 1. Muthukuvial Deposit Scheme: This is TMB’s most popular cumulative FD. Interest is added back to the deposit and compounds over time, helping your savings grow faster. The tenure ranges from 1 year to 10 years, with a minimum investment of ₹1,000.
- 2. Cash Certificate Scheme: A long-term deposit option where your money stays invested until maturity and grows into a larger lump-sum amount. Suitable for future goals such as education, marriage, or retirement planning.
- 3. Regular Fixed Deposit Account: A traditional FD that offers flexible tenures from 15 days to 10 years. Investors can choose monthly or quarterly interest payouts for regular income.
- 4. Pearl Deposit Scheme: This scheme combines growth with flexibility. Interest continues to accumulate, but customers can choose to withdraw the earned interest every 3, 6, 9, or 12 months instead of waiting until maturity.
- 5. Tax Saver Fixed Deposit: A special 5-year FD that qualifies for tax benefits under Section 80C. Available in two variants:
- Malligai Scheme: Regular interest payout option.
- Mullai Scheme: Cumulative option where interest remains invested until maturity.
- 6. Santhosh Term Deposit Scheme: Designed exclusively for senior citizens aged 60 years and above. Eligible customers receive the additional senior citizen interest rate benefit offered by the bank.
- 7. TMB 20:20 Deposit Scheme: A special FD with a fixed tenure of 20 months and 20 days, launched for customers looking for a predefined medium-term investment option.
📌 Which FD Should You Choose? If your goal is maximum maturity value, Muthukuvial or Mullai schemes are usually preferred. If you need regular income, the Regular FD, Pearl Deposit, or Malligai scheme may be more suitable.
3. TMB FD Rates vs Other Popular Banks
Before booking a Fixed Deposit, it is always worth comparing rates with other banks to see where you can get better returns.
| Bank | Regular FD Rate | Senior Citizen Rate | Best Tenure |
|---|---|---|---|
| Tamilnad Mercantile Bank (TMB) | 7.25% | 7.70% | 567 Days |
| Cosmos Bank | 7.05% | 7.30% | 16 Months |
| Repco Bank | 7.50% | 8.00% | 1 Year |
| HDFC Bank | 7.00% | 7.50% | 18 Months to Less Than 2 Years |
📌 Example: Suppose two senior citizens invest ₹10 lakh each for the same period. One chooses a bank offering 7.25% and the other gets 7.70% from TMB. Even this small rate difference can result in several thousand rupees of extra interest by maturity.
4. How to Open a TMB Fixed Deposit
Whether you are an existing TMB customer or opening an FD for the first time, the process is quite simple.
(a.) For Existing TMB Account Holders
- Open the TMB Mobile Banking App or log in to TMB Net Banking.
- Go to Deposits and select Open Fixed Deposit.
- Choose the FD type you want.
- Enter the deposit amount (minimum ₹1,000).
- Select the FD tenure. Many investors choose 567 days to get the highest available rate.
- Add nominee details.
- Check the interest rate and maturity amount.
- Confirm using OTP or transaction PIN and download the FD receipt.
(b.) For New Customers
- Visit your nearest TMB branch.
- Carry your Aadhaar Card, PAN Card, and passport-size photo.
- Open a Savings Account if you do not already have one.
- Fill out the FD application form.
- Choose the FD amount and tenure.
- Submit the required documents.
- Deposit the money through cash, cheque, or account transfer.
- Collect your FD receipt after the deposit is processed.
📌 Practical Tip: If you are investing a large amount, ask the branch staff about loan-against-FD facilities and premature closure rules before booking the deposit.
Frequently Asked Questions
Can a resident senior citizen claim the 7.70% peak rate on a joint TMB account?
Yes. The senior citizen must be the first account holder. If the first holder is below 60 years of age, the FD will normally earn the regular interest rate.
Can I take a loan against my TMB FD?
Yes. TMB generally allows loans or overdrafts of up to 90% of the FD amount, helping you access funds without breaking the deposit
What happens if my FD matures and I do nothing?
If auto-renewal is not selected, the FD stops earning the contracted FD rate after maturity. The amount may be transferred as per the bank’s applicable post-maturity rules.
What is the minimum amount required to open a TMB FD?
Most TMB Fixed Deposits can be opened with ₹1,000, while some special schemes may have different requirements.
Can I close my FD before maturity?
Yes, most callable FDs can be closed before maturity. However, the bank may apply a premature closure penalty, which can reduce your final interest earnings.
How will I receive my FD interest?
You can choose between monthly, quarterly, half-yearly, yearly, or cumulative payout options, depending on the scheme selected.
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