Tamilnad Mercantile Bank RD Interest Rates 2026
Save a fixed amount every month with a TMB recurring deposit. RD rates go up to 7.00% for regular customers and 7.50% for senior citizens. Old private-sector bank headquartered in Thoothukudi, Tamil Nadu.
Rates effective 10 Apr 2026 · Checked 30 September 2026TMB recurring deposit at a glance
Have a lump sum instead? TMB FD rates go up to 7.10% →
TMB RD interest rates
| Tenure | General (p.a.) | Senior citizen (p.a.) |
|---|---|---|
| 180 – 270 days | 6.30% | 6.30% |
| 271 days – <1 year | 6.50% | 6.50% |
| 1 year | 6.80% | 7.30% |
| Above 1 year – <456 days | 6.70% | 7.20% |
| Above 456 days – 566 days | 6.60% | 7.10% |
| Above 567 days – <2 years | 6.60% | 7.10% |
| 2 years – <3 years | 7.00% | 7.50% |
| 3 years – 10 years | 6.70% | 7.20% |
TMB applies its term-deposit (FD) card to RDs of the same tenure. Source: www.tmb.bank.in. Confirm with the bank before opening.
What your monthly savings will become
| Tenure | Rate (general / senior) | ₹2,000 / month | ₹5,000 / month | ₹10,000 / month |
|---|---|---|---|---|
| 1 year | 6.80% / 7.30% | ₹24,897 | ₹62,244 | ₹1,24,487 |
| 2 years | 7.00% / 7.50% | ₹51,640 | ₹1,29,099 | ₹2,58,198 |
| 3 years | 6.70% / 7.20% | ₹79,898 | ₹1,99,746 | ₹3,99,492 |
| 5 years | 6.70% / 7.20% | ₹1,42,732 | ₹3,56,829 | ₹7,13,658 |
General rate, quarterly compounding, before tax. “—” = no published slab for that exact tenure.
TMB RD calculator
Rules & charges
| Feature | Details |
|---|---|
| Minimum instalment | As per bank |
| Tenure | 6 months to 10 years |
| Missed / late instalment | Penal interest if instalment delayed beyond 30 days; account may be closed if >3 months in arrears (1% penalty on closure) |
| Premature closure | Permitted per bank's RD rules (1% penalty on bank-initiated closure) |
| Loan against RD | Usually available up to 80%–90% of the balance |
| Nomination | Up to 4 nominees (from 1 Nov 2025) |
| Deposit insurance | DICGC up to ₹5 lakh per depositor (with other deposits at TMB) |
Tax on TMB RD
| Point | Rule |
|---|---|
| Taxability | Interest taxed at slab rate every year |
| TDS | 10% once FD + RD interest from TMB exceeds ₹50,000 a year (₹1 lakh for 60+); 20% without PAN |
| Avoid TDS | Submit Form 121 (earlier 15G/15H) if your tax is nil |
| Deduction | No 80C; seniors can claim up to ₹50,000 under 80TTB (old regime) |
How to open a TMB RD
- OnlineNet banking or mobile app → Deposits → Open Recurring Deposit. Choose instalment, tenure, debit date and nominee.
- BranchFill the RD form with KYC and give a standing instruction from your savings account.
- Set auto-debitSchedule the debit a day after salary credit to avoid missed instalments.
Documents
- PAN or Form 60
- Aadhaar / other address proof
- Age proof for senior citizen rate
Compare TMB with other banks
| Bank | Highest | 1 year | 5 years | Min. instalment |
|---|---|---|---|---|
| Bandhan Bank | 7.25% | 7.00% | 5.85% | Rs 100/month, multiples of Rs 1 |
| YES Bank | 7.00% | 6.65% | 6.75% | Rs 1,000/month |
| IndusInd Bank | 7.00% | 6.75% | 6.65% | ₹1,000 |
| Tamilnad Mercantile Bank | 7.00% | 6.80% | 6.70% | — |
| Dhanlaxmi Bank | 7.00% | 6.25% | 6.50% | Rs 1,000/month, multiples of Rs 500 |
| Saraswat Co-operative Bank | 7.00% | 6.60% | 7.00% | ₹500 |
| South Indian Bank | 6.80% | 6.25% | 5.70% | ₹100 |
| Federal Bank | 6.75% | 6.25% | 6.40% | Rs 50/month, multiples of Rs 10 |
Frequently asked questions
What is the highest RD interest rate at Tamilnad Mercantile Bank?
TMB pays up to 7.00% on RDs (2 years – <3 years) and up to 7.50% to senior citizens (rates effective 10 Apr 2026).
How much will ₹5,000 a month grow to in a TMB RD?
In 5 years at 6.70%, ₹3 lakh of instalments grow to about ₹3,56,829.
What is the minimum RD instalment at TMB?
Check with the bank for the minimum instalment. Tenure: 6 months to 10 years.
What if I miss an instalment?
TMB: Penal interest if instalment delayed beyond 30 days; account may be closed if >3 months in arrears (1% penalty on closure).
Can I close a TMB RD early?
TMB: Permitted per bank's RD rules (1% penalty on bank-initiated closure).
Is RD interest taxable?
Yes, at your slab rate. TDS of 10% applies when your total FD + RD interest from TMB exceeds ₹50,000 in a year (₹1 lakh for seniors).
Is my RD safe with TMB?
RDs are insured by DICGC up to ₹5 lakh per depositor per bank, including interest.
Rates compiled from the bank’s published RD / term-deposit rates for comparison only. FinancePortal is not affiliated with Tamilnad Mercantile Bank. Confirm current rates with the bank.