Tamilnad Mercantile Bank Recurring Deposit Interest Rates 2024

Established in 1921 as the Nadar Bank, Tamilnad Mercantile Bank is considered one of the leading private sector scheduled banks in the country. With 509 full branches spread across the country, it offers different types of deposits catering to the needs of its customers. Its recurring deposit (RD) serves as one of the easiest methods for systematic savings, allowing bank customers to set aside a fixed amount and earn interest every month. 
Continue reading to have a comprehensive idea about the Tamilnad Mercantile Bank RD interest rates 2024, features, eligibility, etc. 

Tamilnad Mercantile Bank RD Interest Rates 2024 (Under ₹2 Crores)

Features of Tamilnad Mercantile Bank Recurring Deposit Interest Rates 2024

Here are some of the most important features of Tamilnad Mercantile Bank Recurring Deposit:

1. Depositors have the flexibility to open RD accounts with monthly instalments starting from ₹10 or in multiples of ₹10.
2. The eligibility for simple interest is determined based on the deposit period.
3. The option to nominate beneficiaries is available, providing account holders with the means to benefit family members after their demise.
4. Account holders have the privilege of closing their Recurring Deposit before the maturity date. Remember that premature withdrawal is subject to applicable penalties.
5. Depositors can leverage their TMB Recurring Deposit as collateral to secure loans, allowing them to obtain funds against the deposited amount.

How to Open an RD Account in TMB Online?

Opening a TMB Bank RD account is a very easy process. To open the RD account online, follow these steps:

• Step 1: Ensure your Netbanking facility is active. If it’s inactive, visit a Tamilnad Mercantile Bank branch to fill out the Netbanking Activation form.
• Step 2: Log in to your Netbanking account using your credentials, including your username and password.
• Step 3: Within your Tamilnad Mercantile Bank Netbanking Account, select the ‘E-Recurring Deposit’ option from the menu.
• Step 4: Fill out the form with details such as RD amount and tenure. Senior citizens should check the ‘Senior Citizen’ box for enhanced Tamilnad Mercantile Bank RD interest rates.
• Step 5: Upon successful completion of the above steps, your RD account will be opened, and the bank will automatically credit the RD amount on the due date.

How to Open an RD Account in Tamilnad Mercantile Bank Offline?

To open a recurring deposit (RD) account with Tamilnad Mercantile Bank offline, you can follow the simple steps outlined below:

• Step 1: Choose the Tamilnad Mercantile Bank branch where you intend to open your RD account. It is advisable to select the branch where you hold your savings account for potential benefits.
• Step 2: Obtain the RD application form from the bank branch. Complete the form with accurate details such as names, ages, addresses, mode of holding, contact information, email IDs, RD amount, tenure, etc. 
• Step 3: Submit the duly filled form along with necessary documents, including photographs, identity proof, address proof, PAN, etc. For joint accounts, each holder should provide their documents. 
• Step 4: Deposit the initial instalment either in cash, by cheque or through net banking.
• Step 5: Bank personnel will review your submitted form and documents. If everything is in order, your RD account with Tamilnad Mercantile Bank will be successfully opened.

How to Calculate RD Interest Rates in Tamilnad Mercantile Bank?

You can calculate your TMB recurring deposit maturity amount in two ways:

Calculating Manually with Formula

To calculate your maturity amount, the formula you will need is:

M = P*(1+R/N)^Nt

• ‘M’ represents the maturity amount
• ‘P’  represents the periodic investment amount 
• ‘R’ represents the RD interest rate in decimals
• ‘t’ represents the tenure of RD
• ‘N’ represents the compounding frequency

Example:

Mr. R has started a recurring deposit where he invests ₹10,000 every month for a tenure of 2 years. The Tamilnad Mercantile Bank RD interest rate for this deposit is 7%.

Mr. A’s maturity amount will be:

A = 10,000 *(1 + 0.07/4)^4×2
A =  ₹2.58 lakh

As per the TMB bank RD calculator, the maturity amount of Mr. R after 2 years will be ₹2.58 lakh and his interest earned on invested ₹2.4 lakh will be ₹18,198.

Using an Online Calculator 

Here is a step-by-step guide on using an online calculator to calculate the maturity amount of Tamilnad Mercantile Bank recurring deposit:

• Step 1: Choose the monthly investment amount for your recurring deposit.
• Step 2: Input the applicable Tamilnad Mercantile Bank recurring deposit rate offered by the bank for your chosen recurring deposit. 
• Step 3: Determine the investment tenure, specifying the duration for which you intend to maintain the recurring deposit.

Upon accurately furnishing these details, the calculator will generate the outcomes, revealing your total investment amount and the overall value, inclusive of accrued interest.

TMB Recurring Deposit – Eligibility Criteria

To open an RD account in Tamilnad Mercantile Bank, you need to fulfil these eligibility criteria:

1. Resident Indians or citizens of India who reside in the country
2. Non-resident Indians (NRI) or Indian citizens who live outside India
3. Minors or individuals under the age of 18, opening accounts with parental supervision and guardianship
4. Hindu Undivided Family (HUF)
5. Entities such as partnerships, sole proprietorships, corporations, societies, clubs, trusts, etc. are also eligible to open recurring deposit accounts

TMB Recurring Deposit – Documents Required

Here is a list of the most important documents required to start a RMB recurring deposit:

1. Correctly filled-out application form with all the necessary details
2. Photograph in passport size
3. Residency proof documents
4. If the bank deems it necessary, an introduction letter from an existing customer of Tamilnad Mercantile Bank
5. Any additional Know Your Customer (KYC) documentation such as Voter’s identity card, NREGA card, passport, Aadhaar card, driving licence, etc.

Types of RD Accounts

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

1. Basic Recurring Deposit

This account offers flexible terms with durations ranging from 12 to 120 months, in increments of 12 months. Also, it is critical to keep in mind that you can close the account at any time, penalties may apply based on the reason for closure.

• Minimum Deposit: ₹10
• Maximum Deposit: No maximum deposit limit
• Tenure: 1 Year to 10 Years
• Interest Rate: 5.25% to 7.00% for normal citizens and 5.25% to 7.50% for senior citizens
• Eligibility: Indian citizens

2. Kid’s Recurring Deposit

In today’s day and age, the cost of education continues to rise every year. To ease the financial strain, Tamilnad Mercantile Bank offers its customers the Kids Recurring Deposit. It enables parents to make regular small deposits, which culminate in a lump sum payment for higher education. It also provides priority sanction for TMB Education Loan. 

• Minimum Deposit: ₹59
• Maximum Deposit: No Maximum Deposit Limit
• Tenure: 1 Year to 10 Years
• Minimum Target Sum: ₹10,000
• Eligibility: Indian Citizens

3. Siranjeevi Recurring Deposit Account

The Siranjeevi Recurring Deposit Account is a savings account offered by Tamilnad Mercantile Bank that provides life insurance coverage along with interest on deposits. Also,  you can obtain loans against the deposit amount.

• Minimum Deposit: ₹100
• Maximum Deposit: ₹10,000
• Tenure: 36 months to 84 months
• Life Insurance Cover: Up to ₹10 lakhs
• Eligibility: Indian Citizens between 18 years and 60 years of age 

Tamilnad Mercantile Bank RD Premature Withdrawal Rules

Here are some of the most important withdrawal rules you have to keep in mind:

1. The account can be closed on short notice if the depositor defaults for over 3 months. When closed, there might be a penalty on the interest given. 
2. It is important to note that any delay in the payment of your instalment, even if it is just for one day, may result in the application of an interest penalty for the entire month or a cash penalty following the bank’s regulations.
3. For calculating the penalty amount, a fraction of a month is treated as a full month. 

Tamilnad Mercantile Bank RD Penalty

It is worth noting that all Tamilnad Mercantile Bank fixed deposits can be withdrawn before their maturity, except for the tax-saving RD. However, in case of premature withdrawal, a penalty of 1% is levied on the contracted Tamilnad Mercantile Bank RD interest rate 2024.

How to Close Tamilnad Mercantile Bank RD Account Offline?

If you want to know how to close your Tamilnad Mercantile Bank RD account, here is a step-by-step guide:

• Step 1: Complete the FD Account Closure Form.
• Step 2: Attach KYC documents for all account holders.
• Step 3: Submit the FD certificate or receipt.
• Step 4: Choose your preferred mode of withdrawal: cash, cheque/DD, or transfer to another account.

By following these steps, you can efficiently close your FD account with Tamilnad Mercantile Bank. The bank typically notifies customers via email or SMS once the FD account closure is completed.

TDS on Tamilnad Mercantile Bank RD

According to the income tax laws, Tax Deducted at Source (TDS) applies to Recurring Deposits. The TDS rate on RD is set at 10%, but no deduction occurs if the Tamilnad Mercantile Bank RD interest income remains below ₹40,000 for general citizens and ₹50,000 for senior citizens in a financial year (effective from April 2019).

Individuals with no taxable income and no other income sources can submit Form 15G or 15H (applicable for senior citizens above 60 years) to the bank, preventing TDS deduction from their interest income. It is important to note that Form 15G or Form 15H must be submitted annually. Also, remember that failure to provide the PAN number in your RD Account will attract a higher TDS deduction rate of 20% instead of 10%.

Loan Against Tamilnad Mercantile Bank Recurring Deposit

Tamilnad Mercantile Bank provides the option for investors to avail loans against their recurring deposits. Account holders can secure loans of up to a certain percentage of their Tamilnad Mercantile Bank RD investment. Additionally, the Tamilnad Mercantile Bank RD interest rate in 2024 for these loans is determined following the prevailing norms and policies of the bank.

Final Word

Tamilnad Mercantile Bank offers a diverse range of Recurring Deposit (RD) options, catering to the varied needs of investors. If you want to open a recurring deposit, Tamilnad Mercantile Bank RD interest rates in 2024 are one of the highest in the market. Its offerings, supported by user-friendly processes and beneficial features, make it a compelling choice for individuals seeking a reliable and rewarding savings platform.

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.