Tamilnad Mercantile Bank Recurring Deposit 2025
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. As of today, May 02, 2025, the current Tamilnad Mercantile Bank RD rates range from 5.75% to 7.00% for general citizens and from 5.75% to 7.50% for senior citizens.
Tamilnad Mercantile Bank (TMB) was founded in 1921 as Nadar Bank, and changed its name to Tamilnad Mercantile Bank in November 1962 with a motive to widen its appeal beyond the Nadar community in the state of Tamil Nadu.
Today, the bank has 431 full service branches coupled with 884 ATMs across the length and breadth of the country.
This Tuticorin headquartered bank has its shares traded publicly on the Bombay Stock Exchange(BSE). TMB has been consistent in its performance which is evident from its rate of dividend disbursal to its shareholders, for decades now.
In the personal banking segment, it offers a massive range of banking and financial products reaching out to the masses. In its term deposits portfolio, TMB provides 5 different types of Recurring Deposit schemes.
Recurring Deposit from Tamilnad Mercantile Bank
- Basic RD - A popular standard scheme that is comes with flexible features and benefits. One can open and operate an RD account with just Rs.10 and in multiples of this value. Exclusive perks such as loan against deposit, nomination facility is also available.
- ERD Online - A new age RD scheme that lets you open and manage an RD account online and earn high rates of interest. The minimum installment amount starts at just Rs.100 and in multiples thereafter.
- Kids RD - A one of its kind scheme in the market that is exclusively designed for students/parents to help them meet the growing cost of education. Depositors under this scheme get preferential treatment for when they apply for an education loan with TMB.
- Navarathnamala RD - A unique plan that gives you the right mix of savings and reinvestment plan, which provides attractive returns with compounded interest on the entire term.
Features and Benefits of Tamilnad Mercantile Bank Recurring Deposit (RD)
Basic RD:
- All categories of customers which includes individuals, firms and corporates are eligible to apply.
- The monthly installment amount will be in sums of Rs.10 or in its multiples.
- Term of deposit starts at 12 months and in multiples thereafter with an upper limit of 120 months.
- No TDS is deducted on the interest charges earned.
- Nomination facility is available.The depositor is also eligible for loan against the RD account.
ERD Online:
- Existing customers with TMB eConnect Internet Banking facility can easily open and operate an RD account under this scheme.
- The minimum monthly installment starts at just Rs.100 with an upper cap of Rs. 5,00,000. All monthly installments should be in multiple of Rs.100 only.
- The depositor can provide standing instructions for auto debit of monthly installment amount on basis of which future debits will be made based on the depositor’s instruction.
- Upon maturity, the account will be automatically closed, interest and principal amount will be credited directly to the linked operating account.
- Premature closure is permitted offline at branches with applicable penalty as per the existing terms.
Kids RD:
- The term of deposit starts at 1 year that can stretch up to a period of 10 years.
- The minimum monthly savings begin at Rs.58 per month with no cap on the upper limit.
- No TDS is deducted on interest earnings or the principal amount.
- Depositors who have been investing for a long time have an advantage of getting preference when they apply for an education loan with TMB.
Navarathnamala RD:
- A unique scheme that offers attractive returns upon maturity with compounded interest for the entire duration.
- Installments can be remitted in slabs of 36, 48 and 60 months.
- 5 and 10 years term fetches interest charges at the rate of 9% p.a. Senior citizens are eligible for an additional rate of 0.50%.
- Nomination facilities along with loan against the deposit amount are standard features.
- Non Resident Indians(NRIs) are also eligible to make a deposit under this scheme with no TDS applicable on the interest earned.
Interest Rates Offered on Tamilnad Mercantile Bank Recurring Deposit (RD)
Owing to the variety of RD schemes offered by TMB, the rate of interest varies depending on the terms. The bank offers slightly higher rate of interest above the market standards. The rate hovers between 8.80% to 9.00% depending on the period of investment. Senior citizens get an additional 0.50% over the existing rate.
Opening a Recurring Deposit Account with Tamilnad Mercantile Bank
Existing customers of TMB will have to do minimum paperwork to open an RD account. An aspirant can either walk into the nearest banking branch or use the internet banking facility to open the account. New customers may be required to submit documents relating to ID and address proof, along with PAN details and duly filled form in the relevant format.
Penalty on Premature Withdrawal RD
No interest is payable on withdrawals made within the first 14 days from the time of opening the account.
All other premature withdrawals before the term closure will be billed a penalty at the rate of 1% below the agreed interest rate.
RD Article pages
- Recurring Deposit Vs. Chit Fund
- Miss to Pay the Recurring Deposit Due
- Difference Between Recurring Deposit and SIP
- Open RD Account through HDFC NetBanking
- RD Account in SBI
- Advantages of Recurring Deposit
- Flexi RD
- SBI Flexi RD Schemes
- Monthly Recurring Deposit
- Co-operative Bank Recurring Deposit
- Indian Bank Recurring Deposit
- Union Bank Recurring Deposit
- UCO Bank Recurring Deposit
FAQs on Tamilnad Mercantile Bank RD
- What are the age criteria that must be met to open a Siranjeevi Recurring Deposit Account?
Individuals between the ages of 18 years and less than 60 years can open a Siranjeevi Recurring Deposit Account.
- What is the tenure of the Siranjeevi Recurring Deposit Account?
The tenure of the Siranjeevi Recurring Deposit Account ranges between 36 months and 84 months.
- Is it mandatory to complete a medical check-up to open the Siranjeevi Recurring Deposit Account?
No, it is not mandatory to complete a medical check-up to open the Siranjeevi Recurring Deposit Account.
- Is it possible to open an RD account with Tamilnad Mercantile Bank RD online?
Yes, you can open an RD account with Tamilnad Mercantile Bank RD online.
- Can I avail a loan against the amount that is available in the Siranjeevi Recurring Deposit Account?
Yes, you can avail a loan against the amount that is available in the Siranjeevi Recurring Deposit Account.
- Can nominees be added to the RD account offered by Tamilnad Mercantile Bank?
Yes, nominees can be added to the RD account offered by Tamilnad Mercantile Bank.
- Will a penalty be levied in case the RD account is preclosed?
Yes, a penalty will be levied in case the RD account is preclosed.
- Yes, a penalty will be levied in case the RD account is preclosed.
Yes, life insurance is offered under the Siranjeevi Recurring Deposit Account.
- What is the minimum amount that must be deposited under the Kids Recurring Deposit Account?
The minimum amount that must be deposited under the Kids Recurring Deposit Account is Rs.10,000.
- What is the minimum amount that must be deposited under the Kids Recurring Deposit Account?
There is no limit to the maximum amount that can be deposited under the Kids Recurring Deposit Account.
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