Tamilnad Mercantile Bank Fixed Deposit Rate

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Tamilnad Mercantile Bank Fixed Deposit Rate

Tamilnad Mercantile Bank Fixed Deposit Rate - FD Rate in India

A Fixed Deposit (FD), as the name suggests, allows you to deposit a fixed amount of money, for a fixed period of time, for a fixed rate of interest It is a form of saving that yields a higher interest amount than a regular savings account. The bank gives you an interest at a specified rate, for the money deposited with them. Interest rates vary with each bank. The interest is added to the principal amount and the bank pays the accumulated amount at the time of ‘maturity’. If you have idle money, opening an FD is one of the simplest investment options.

Money can be deposited in an FD account for a time period that usually ranges from 7 days to as long as 10 years. You can choose the tenure that is most suitable for you according to your investment plan and priorities.

While you are not generally allowed to withdraw from an FD account, banks offer liquidity options and flexible lock-in periods. Banks typically charge a penalty for prematurely breaking a deposit account. it is advisable to check on the liquidity options with the bank before investing in an FD.

FDs are a popular investment instrument in India, sought after for its low-risk guaranteed returns. The returns are low when compared to other riskier forms of investment, for instance, the stock market, but it is at least free from fluctuations and volatility.

Apart from banks, NBFCs and corporates too offer fixed deposits.

Tamilnad Mercantile Bank Deposit Rates

The rate of interest paid on a fixed deposit varies according to the amount deposited, period and the issuing bank. The general rule of thumb is, the longer the term of deposit, the higher the rate of interest, though a bank may also offer a lower rate of interest for a longer tenure if the rates are expected to fall in the future. Tamilnad Mercantile Bank Interest Rates typically range from 5% - 8% per annum.

Tamilnad Mercantile Bank FD rates

Following is an overview of Tamilnad Mercantile Bank Term Deposit Rates and Tamilnad Mercantile Bank Short-Term Fixed Deposit Interest Rates.

Tamilnad Mercantile Bank Interest Rates on Fixed Deposits 2015 – 2016:

(Do keep in mind that these rates can change at any time and can be changed at the sole discretion of the Bank. For the latest rates, it is advisable to check with Tamilnad Mercantile Bank directly.)

Domestic & NRO Term Deposits rate for amount up to 15 lacs.

Tenure  Interest Rate (p.a.)
5 years - 10 years 7.45%
> 20m 20d - < 5 years 7.45%
20 months 20 days 7.45%
> 1y to < 20m 20d 7.45%
1 year 7.50%
181 days - < 12 months 7.30%
180 days 7.50%
91 days - 179 days 7.25%
46 - 90 days 6.80%
30 - 45 days 6.30%
15 - 29 days 5.80%

Bulk Domestic & NRO Term Deposits rates for above 15 lacs up to Rs. 1 Crore

Tenure  Interest Rate (p.a.)
5 years - 10 years 7.40%
> 20m 20d - < 5 years 7.40%
20 months 20 days 7.40%
> 1y to < 20m 20d 7.40%
1 year 7.45%
181 days - < 12 months 7.25%
180 days 7.50%
91 days - 179 days 7.20%
46 - 90 days 6.75%
30 - 45 days 6.25%
15 - 29 days 5.75%

Tamilnad Mercantile Bank FD Interest Rates for Senior Citizens

Tamilnad Mercantile Bank offers special Senior Citizen FD Rates which are generally marginally higher than the rates applicable for a regular FD. It provides seniors with that extra buffer for their retirement years. Note that the additional rate of interest does not apply to NRO Term Deposits. Following is an overview:

Tenure Interest Rate p.a. for amount up to Rs. 15 lacs Interest Rate p.a. for amount above Rs. 15 lacs up to Rs. 1 Crore
5 years - 10 years 7.95% 7.90%
> 20m 20d - < 5 years 7.95% 7.90%
20 months 20 days 7.95% 7.90%
> 1y to < 20m 20d 7.95% 7.90%
1 year 8.00% 7.95%
181 days - < 12 months 7.30% 7.25%
180 days 7.50% 7.50%
91 days - 179 days 7.25% 7.20%
46 - 90 days 6.80% 6.75%
30 - 45 days 6.30% 6.25%
15 - 29 days 5.80% 5.75%

How to Calculate Tamilnad Mercantile Bank Fixed Deposit Interest

While calculating the maturity amount on a certain principal deposit might turn out to be a hassle, you can easily calculate the FD interest with the help of the Tamilnad Mercantile Bank FD Maturity Calculator. It is easy to use and can come in handy while deciding how much you want to invest. The bank has different FD calculators for different FD schemes. You can choose which scheme you want to invest in and choose the calculator accordingly. The calculator does the mathematical computations and presents you with a breakup of the interest payable. You can use the online calculator as many times as you want, using various combinations. This will help you arrive at your final deposit amount and help decide how much you want to invest and for what period.

Alternatively, you can also calculate the interest earned and the maturity value on the principal amount using the following formula.

Calculate Tamilnad Mercantile Bank FD Rate

A = P x (1 + r/n)nt

I = A - P

Where

A = Maturity Value

P = Principal Amount

r = Rate of Interest

t = Number of Years

n = Compounded Interest Frequency

I = Interest Earned

Tamilnad Mercantile Bank FD Premature Withdrawal Penalty

Withdrawing from an FD is possible, as banks have certain policies which helps make it liquid in times of need. But this comes at a cost as you might lose out on the interest pay out depending on the maturity period left. Note that no interest will be payable if the deposit is pre-closed within 14 days of account opening / renewal.

Tamilnad Mercantile Bank typically charges a nominal penalty for premature withdrawal which is communicated to you at the time of application of FD Deposit.

Tamilnad Mercantile Bank FD – FAQS

What is the minimum and maximum tenure for a basic FD schem?

A basic FD account can be opened for a minimum period of 15 days to 120 months.

What is simple interest payout?

Simple interest will be paid depending on the period of deposit. Monthly and quarterly interest payout scheme is also available.

Is tax deducted for FD deposits?

Yes, if the interest earned reaches a particular slab in the financial year, then TDS is deducted.

Is there a reinvestment plan with a higher rate of interst?

Yes, the ‘Muthukuviyal’ scheme is a reinvestment plan that helps earn a higher rate of interest on your savings. Loans can also be availed against your deposit.

The time period for such a deposit ranges from 12 months to 10 years.

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