As the name implies, this is the bank's standard FD program, which has no market risk but offers significant returns due to high TMB FD interest rates. Investors can put their money in a savings account for a certain length of time and receive compound interest on it.
Muthukuvai FD, the bank's flagship investment product, is meant to give clients with greater returns by reinvesting the accumulated interest in the principal amount. This type of interest treatment is known as compounding interest, and it generates higher returns than the old method of simple interest. A cumulative FD is another name for this sort of fixed deposit.
TMB's special investment option, Santosh FD, is specifically intended to meet the investing needs of elderly persons, taking into account restrictions like sporadic or no income, etc. The program combines the advantages of a savings account and a fixed deposit account into one.
The 20:20 Deposit Scheme accomplishes exactly what its name implies: it provides larger returns in a shorter period of 20 months and 20 days. The plan provides a 6.85 percent interest rate for normal residents and a 7.35 percent interest rate for senior citizens.
TMB expands the tax-saving fixed deposit plan to benefit taxpayers. This program has a 5-year lock-in period during which no withdrawals (partial or full) can be made. Furthermore, the plan does not allow for loans to be granted against deposits deposited.
Pearl deposit is a long-term fixed deposit program with a minimum period of one year and a maximum duration of 120 months. Senior people are entitled to an extra 0.50 percent interest rate on standard FD rates.
TMB's Cash Certificate Scheme is a set face value plan with a variety of features to help investors interested in fixed deposits. With competitive TMB FD interest rates, deposits can be placed for up to ten years. Cash certificates are available in set amounts of Rs. 1,000, 5,000, 10,000, 25,000, 50,000, and 1 lakh.
Short-term deposits range from 15 days to 1 year and the interest rates for general customers start from 3.25% to 5.45%, and the same for senior citizens.
The medium-term deposits range from 1 year to 3 years. The interest rates offered are 5.45% to 5.25% for general customers and the same is followed for senior citizens.
The long-term deposits range from 3 years to 0 years, and the interest rates offered by the company are 5.15% for general customers and senior citizens.
A Tamilnad Mercantile Bank FD account can be opened through different modes like Mobile App, Internet Banking, and offline.
1) Internet Banking
Follow the below-mentioned steps for opening a Tamilnad Mercantile Bank FD account via internet banking-
2) Mobile App - TMB Bank App
Follow the steps mentioned ahead to open an FD account via Tamilnad Mercantile Bank App-
3) Opening Tamilnad Mercantile Bank FD Offline
For opening a Tamilnad Mercantile Bank FD account via offline mode, one has to visit the nearest Tamilnad Mercantile Bank branch. Fill out the Tamilnad Mercantile Bank FD application form and present all the necessary documents with the deposit amount. On successful processing of the application, an FD receipt will be provided by the Tamilnad Mercantile Bank.
All resident individuals of India are eligible to open a Tamilnad Mercantile Bank FD account.
The following documents have to be furnished for opening a Tamilnad Mercantile Bank FD –
An investment in Tamilnad Mercantile Bank Saving FD entitles to tax saving up to Rs. 1,50,000 p.a. No other Tamilnad Mercantile Bank FD entitle to tax saving under Section 80C of the Income Tax Act.
Also, note that the interest income from the Tamilnad Mercantile Bank Fixed Deposit is taxable according to the slab rates of income tax. Also, the interest income is subject to a TDS of 10% if the income from Tamilnad Mercantile Bank FD exceeds Rs. 40,000 p.a.
For senior citizens, the limit is Rs. 50,000 p.a. Also, if the investor fails to provide PAN Card details to the bank, the TDS rate will be 20%.
Tamilnad Mercantile Bank provides loans against their Fixed Deposits. Investors can receive up to 90% of the deposit as a loan. The rate of interest for the loan will be according to the terms and conditions of the Tamilnad Mercantile Bank.
All Tamilnad Mercantile Bank Fixed Deposits can be withdrawn prematurely, excluding the tax-saving Fixed Deposits. Tamilnad Mercantile Bank levies a 1% penalty on the contracted rate of interest.
What is FD nomination facility?
If the depositor dies and there is a nominee assigned, the whole fund amount of the FD is credited to the nominee's account. Otherwise, the FD is closed and rendered null and invalid.
What is the maximum TMB FD interest rate available?
Currently, the most one may earn on an FD with the bank is for a term of more than one year to less than two years, with the TMB FD rate set at 7% for ordinary residents and 7.5% for senior citizens.
What is the bare requirement for opening a bulk deposit account with Tamilnad Mercantile Bank?
To open a bulk deposit and earn returns on the current TMB FD interest rates, a minimum investment of Rs. 2 crores is required.
How to open TMB FD scheme?
To create a fixed deposit account with Tamilnad Mercantile Bank, the first and most important step is to download and print the application form from the bank's official website. The next step is to complete the form and send it, together with any needed papers, to a Tamilnad Mercantile Bank branch near you.
Can I get a loan against TMB FD?
Investors in the bank's fixed deposit plans have the option of taking out a loan using their FD as collateral to correct a financial imbalance or satisfy a financial need. They will not have to go through the procedure of applying for a loan, submitting paperwork, and waiting for the loan approval in this manner. Loans of up to 90 percent of the deposit amount are available.