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The Tamilnad Mercantile Bank Ltd. or TMB was established in 1921 as the Nadar Bank, primarily to support the Nadar business community, and was started by T.V.Balagurusamy Nadar. The bank changed its name in 1962 in an attempt to change its appeal from being limited to the Nadar community. With over 400 branches spread across the country the bank offers many services to its customers of which fixed deposits is one.
The bank also has branches in Colombo, Singapore, and Malaysia and was rated as the fastest growing bank in India for five years in a row from 2007 to 2012. In the years 2010, 2011 and 2012 it was rated as the best bank due to its explosive growth. The bank was also planning on opening branches in Dubai, Kuwait and Doha. One of the biggest news related to the bank was about their plan to release an IPO in 2013.
The bank maintains its headquarters at Tuticorin in Tamil Nadu, India. The bank also has tie-ups with other banks like IDBI and HDFC which allows it to reach out to more customers through various branches of these banks.
TMB brings to customers savings products in the form of fixed term deposit accounts that offer interest at higher rates than current or savings accounts. These deposit accounts are easily accessible, do not require high initial investments and provide returns at rates that are both competitive and attractive. Depositors can invest in these fixed return instruments for very short periods or long terms depending on their funding and investment timelines. These deposits offer many value-added facilities such as renewals, overdrafts and nominations.
The eligibility criteria for a person to open a fixed deposit account with TMB is that the depositor should be a resident of India. Hindu Unified Families (HUF) can also apply for these term deposits. Apart from these, the bank also offers NRE and NRO services to its customers. Entities like clubs, companies, partnership firms, trusts, public associations, etc. can also apply. In some cases minor are also allowed to open FD’s provided they are guided by a legal guardian.
There are a lot of schemes that are offered by Tamilnad Mercantile Bank when it comes to fixed (term) deposits. They have been designed and engineered to suit the various needs its customers may have with regards to investments in fixed deposits with TMB. Some of these schemes are:
As the name suggests, this is a basic fixed deposit which depositors can open for periods ranging from 15 days to 10 years. The interest earned in this deposit can be withdrawn every month of at the end of every quarter. Premature closing of Basic FD’s is permitted but it may incur some penalties. If the deposit is closed before the first 15 days are over then no interest may be paid to the depositor.
This scheme is a reinvestment scheme provided by the bank under which the minimum deposit must be of ₹ 1000. Any further deposits must be made in multiples of ₹ 1000. Deposits made under this scheme can be held for a minimum period of 12 months and a maximum period of 10 years. This deposit also allows for premature closing but it is subject to a penalty. The penalty in most cases is that the interest paid will be 1% below the prescribed rate.
This fixed deposit scheme has been made to target those who want to invest their money for long periods of time. Under this scheme, investors can deposit a minimum of ₹ 1000 and further investments are made in multiples of ₹ 1000. The time period for such deposits is 10 years and the interest earned can be withdrawn every month or every quarter.
As the name suggests, TBM 555 deposits are made for 555 days at a time and provide attractive interest rates from 8.95% to 9.45% depending on your status of being a senior citizen. Anyone can invest in this deposit and can avail facilities like nominations and monthly/quarterly interest payments. The only drawback of this scheme is that it’s open only for a limited time.
This is a scheme that is a little different from the regular fixed deposits. Under this scheme cash certificates are available for amounts of ₹ 1000, ₹ 5,000, ₹ 10,000, ₹ 25,000, ₹ 50,000 and ₹ 100,000. The tenure of these deposits is 12 months to 10 years and the interest paid is compounded.
This is a scheme that is targeted at senior citizens and requires that the depositor be over the age of 60 years. In this scheme the depositor is also provided with a savings bank account and a facility wherein they can withdraw funds from the FD via any of the TBM ATM’s.
The Double Deposit scheme offers investors the opportunity to double their money in the shortest possible time period. This scheme demands that a minimum deposit of ₹ 1000 be made and further investments be done in multiples of ₹ 1000. The time that is taken to double the deposit is different for both senior citizens, 88 months 19 days, and regular depositors, 93 months 14 days. The time periods are approximations.
As the name suggests, this is a scheme that is aimed at providing tax benefits to customers under section 80C. The minimum amount that can be deposited under this scheme is ₹ 100 and the maximum is ₹ 1,50,000 in a year. The period for which such a deposit can be held for is a minimum of 5 years and a maximum of 10 years. The depositor is required to provide PAN details or forms 15G and 15H and is not allowed to close this deposit before the stipulated period is over.
The Pearl Deposit scheme allows the depositor to open an FD with the bank and then have the interest withdrawn at 3, 6, 9 or 12 month intervals. The interest can either be withdrawn or transferred to an account. Premature closing is permitted but may attract penalties. The account also needs to be opened for periods ranging from 12 months to 10 years.
In this scheme, investors can invest a minimum of ₹ 1000 for a fixed period of 20 months and 20 days. The interest rates offered are 8.85% to 9.35%. The higher interest rate is for senior citizens investing in this scheme. How this scheme differs from others is that this scheme does allow for premature withdrawal but at a penalty.
The minimum amount required to open a fixed deposit with Tamilnad Mercantile Bank depends on the scheme that you opt for. For most schemes it is a minimum of ₹ 1000, however, for the tax savings scheme the minimum is ₹ 100.
There is no prescribed upper limit for amounts put in fixed deposits with the bank. Customers may need to approach the bank to find out the maximum amount that can be deposited.
The minimum and maximum periods for which funds can be held in TMB’s FDs ranges from 15 days to 120 months (10 years). This period, however, is subject to the scheme in question. For example, if you opt for a tax savings scheme then the minimum period is 5 years and the maximum is 10 years. Similarly with the 555 Deposit scheme the deposits are made for a maximum tenure of 555 days.
To open an FD with Tamilnad Mercantile Bank just visit the BankBazaar website. There you will find the forms that you need to fill out and a calculator that will help you decide how much you want to invest and for how long and also show you the maturity amount that you will be able to claim. To complete the procedure, simply download the fixed deposit form, fill it out and submit it to the closest TMB branch with the relevant supporting documents.
The interest rates offered by TMB depend on the scheme that you opt for or the duration for which you want to hold funds in the FD account. The minimum interest offered by them is 7% and the maximum interest offered is 9%. They also offer a special interest rate of 0.5% over the prescribed rate for senior citizens.
Yes, TBM does offer tax saver fixed deposits. They are called Tax Saving FD’s. In these FD’s depositors can deposit a minimum of ₹ 100 and a maximum of ₹ 1,50,000 per year. The minimum tenure for such a deposit is 5 years and no premature withdrawals are permitted.
Yes. The fixed deposit accounts held with TBM are taxable under the applicable rules. Tax is usually deducted at source if interest earned on the FDs crosses a specified limit for a financial year (as per prevalent tax rules) unless the person does not fall in a tax bracket or has provided forms 15G and 15H.
Fixed deposit accounts with TBM offer its customers many features like:
Yes, depositors can take loans against fixed deposits held with TMB. The loan amounts can be up to 90% of the deposited amount and is available for most schemes with the exception of a few like the Tax Saving Fixed Deposit.
Yes. Tamilnad Mercantile Bank offers an extra 0.5% interest over the applicable rate of interest for senior citizens.
Yes, TMB will allow premature withdrawal of fixed deposits held with them but it would depend on the type of deposits. Tax saving deposits comes with lock-in periods of 5 years so no premature withdrawals will be permitted for the first 5 years. For other deposits, if the deposit is closed in the first 14 days then no interest will be paid. For deposits closed prematurely after the initial 14 days the penalty will be a discounted rate of interest. This discounted rate could be an interest rate which is 1% less than the applicable rate of interest. The interest paid will also be calculated based on the number of days that the deposit was actually held for.
Yes, NRIs can invest in fixed deposits with Tamilnad Mercantile Bank. They have the option of opening NRO, NRE or FCNR deposits. The NRO and NRE deposits are maintained in INR whereas FCNR deposits can be maintained in foreign currencies.
With NRO deposits, you will earn an interest of between 7% per annum and 9% per annum depending on the duration of your deposit. These durations can range from 15 days to 10 years.
NRE deposits on the other hand can be opened for a minimum of 1 year and a maximum of 10 years. The interest on these deposits ranges from 8.8% per annum to 9% per annum.
With FCNR deposits you can deposit money in USD, USD, Euro, CAD, AUD, JPY or CHF. The duration of these deposits is 1 year to 5 years and the interest you earn depends on the currency and the duration of the deposit.