Tamilnad Mercantile Bank RD Interest Rates

Tamilnad Mercantile Bank or (TMB) is a bank that was founded in 1921 as Nadar Bank and it is one of the very first private sector banks in the country. The bank provides a wide range of services primarily to micro, small, and medium-sized businesses, as well as agricultural and retail consumers.

The bank has 509 branches, 369 of which are in its native state of Tamil Nadu, which is for more than 70% of its activity, and the remaining branches are scattered across 15 states and four Union territories.

The Tamilnad Mercantile Bank provides four types of RD plans. The duration of these Recurring Deposit programs spans from 1 to 10 years. Online RD accounts can also be opened. The minimum deposit necessary to start an RD account is ten rupees, which can be increased to a multiple of ten.

TMB has also established an RD program for students to save or help parents save for their children. TMB also offers an RD program that includes insurance and remittance possibilities.

TMB RD Interest Rates 2023

Here is the table to show the Tamilnad Mercantile Bank RD interest rates:

Tenure

TMB RD interest rates for general customers

Interest Rates for Senior Citizens

1 year

6.30%

6.80%

1 year 1 day - less than 20 months 20 days

6.30%

6.80%

20 months 20 days

6.40%

6.90%

20 months 21 days - less than 2 years

6.40%

6.90%

2 years - less than 3 years

6.40%

6.90%

3 years - 10 years

6.25%

6.75%

Types of TMB RD schemes

There are mainly four types of RD accounts from TMB, and they are:

1) The General RD Account

  • Account terms can range from 12 to 120 months in multiples of 12.
  • The account can be closed at any time. Depending on the reason for the closure, there may be a penalty.
  • There is a nomination option available.
  • Loans in excess of the deposit amount may be obtained under specific conditions.
  • If no deposits are made for three months in a row, the account will be canceled automatically.
  • Depositors must make their monthly payments within 30 days of the due date.
  • A recurring deposit of INR 10 or multiples thereof can be opened.

2) Kid's Recurring Deposit

Every day, the expense of schooling rises. To alleviate the burden on parents, Tamilnad Mercantile Bank gives its clients a Kids Recurring Deposit, which allows them to deposit little amounts regularly in exchange for a lump sum payout when the children graduate from high school.

The scheme includes the following features:

  • The minimum deposit is INR 58.
  • There is no upper restriction on monthly deposits.
  • At maturity, the minimum target sum is Rs. 10,000.
  • The minimum tenure available is ten years.

3) ERD Recurring Deposit

Tamilnad Mercantile Bank E-connect enables you to access your funds and transaction details from any location in the world. You can start a recurring deposit account online using the ERD service.

Some of the features are as follows:

  • Account holders of Tamilnad Mercantile Bank, having an E-connect internet banking capability, can open an ERD account. The regular deposit will be linked to the active savings account.
  • The ERD Online Recurring Deposit account is not available to Retail Inquiry or Retail NRI customers.
  • Only branches are permitted to close prematurely.
  • Deposit Accounts (DA) opened with the Tamilnad Mercantile Bank E-connect service cannot be transferred to other branches.
  • Standing instructions for monthly savings deposits into recurring deposit accounts.
  • The minimum amount is INR 100, while the highest deposit is INR 50 lakhs.
  • For ERD accounts, just an e-receipt will be sent.

4) Navarathnamala Recurring Deposit

This product combines fixed and recurring deposits. Key characteristics include. The scheme's interest is reinvested into the recurring deposit account as new instalments.

  • Payments can be made over 36, 48, or 60 months.
  • An account can be opened for 60 months with 36 payments made by the depositor and 24 payments made via interest reinvestment.
  • Similarly, for a 120-month recurring deposit, the depositor can choose 36/48/60 monthly deposits and reinvestment for 84/72/60 months.
  • Accounts can be opened individually, jointly, or on behalf of minors by parents.
  • There is an ECS facility available.
  • Pre-closures are permitted under specific conditions.
  • Non-residents can participate in the scheme.

FAQs

Q1. Is there a lock-in period for the recurring deposit?

Yes, the recurring deposit account has a one-month minimum lock-in term.

Q2. What documents are needed to start a recurring deposit account?

The following documents are required:

  • Application form completed.
  • Photograph in passport size.
  • Proof of residency is required.
  • Introduction letter from a current Tamilnad Mercantile Bank customer (if required).
  • Any other KYC documentation that the bank may require.

Q3. What is the bare requirement for opening a recurring deposit with Tamilnad Mercantile Bank?

A regular recurring deposit with Tamilnad Mercantile Bank requires a minimum initial balance of Rs. 1000.

Q4. Is an overdraft facility available to me?

There is currently no overdraft facility for recurring deposits. However, subject to specific conditions, you may ask for a loan against the deposit.

Q5. What is the shortest and longest deposit period?

The minimum deposit term is 6 months, and the maximum deposit tenure is 10 years.

Invest the way you want
Join millions of Indians who trust and love Groww
EXPLORE PRODUCTS
Loading...
ⓒ 2016-2023 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 3.9.8
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  ICICI PRUDENTIAL |  HDFC |  NIPPON INDIA |  ADITYA BIRLA SUN LIFE |  SBI |  UTI |  FRANKLIN TEMPLETON |  KOTAK MAHINDRA |  IDFC |  DSP |  AXIS |  TATA |  SUNDARAM |  PGIM |  INVESCO |  LIC |  JM FINANCIAL |  BARODA PIONEER |  CANARA ROBECO |  HSBC |  IDBI |  INDIABULLS |  MOTILAL OSWAL |  BNP PARIBAS |  MIRAE ASSET |  PRINCIPAL |  BOI AXA |  UNION KBC |  TAURUS |  EDELWEISS |  NAVI |  MAHINDRA |  QUANTUM |  PPFAS |  IIFL |  Quant |  SHRIRAM |  SAHARA |  ITI