Tamilnad Mercantile Bank has rolled out a special fixed deposit scheme that offers attractive interest rates, particularly for senior citizens. The private sector bank announced these updated rates on January 8, 2026, providing depositors with options ranging from 4% to 7.5% based on the deposit tenor.
Special Offer for Senior Citizens
For a 456-day deposit, senior citizens can avail an interest rate of 7.5%, which is the highest rate in the bank's current offerings. Regular citizens are entitled to 7.10% for the same 456-day tenor. This makes the 456-day period a standout choice for those looking to maximize returns on their savings.
Interest Rates Across Different Tenors
The bank follows a tiered structure where interest rates increase with the length of the deposit. Short-term deposits receive lower rates, while long-term deposits offer higher returns. For example, on a 1-year deposit, regular citizens get 6.8%, and senior citizens receive 7.3%.
Here is a detailed breakdown of the interest rates for various tenors:
- 7-14 days: 4% for both regular and senior citizens
- 15-29 days: 4.25% for both
- 30-45 days: 4.5% for both
- 46-90 days: 4.80% for both
- 91-179 days: 5.80% for both
- 180-270 days: 6.30% for both
- 271 days to less than 1 year: 6.40% for both
- 1 year: 6.80% for regular, 7.30% for senior citizens
- 456 days: 7.10% for regular, 7.50% for senior citizens
- 456 days to 2 years, 2-3 years, 3-10 years: 6.60% for regular, 7.10% for senior citizens
Key Highlights of the New Rates
For deposits between 1 year and 456 days, the interest rates remain constant at 6.8% for regular citizens and 7.3% for senior citizens. The peak rates of 7.10% and 7.5% are specifically available for the 456-day tenor, making it a lucrative option for depositors.
On long-tenor deposits above 456 days, such as those for 2 years, 3 years, 5 years, or even 10 years, the bank offers a steady rate of 6.60% for regular citizens and 7.10% for senior citizens. This consistency provides predictability for long-term investors.
Ultra Short-Term Deposits
For very short tenors, the interest rates are relatively lower. Deposits of 7-14 days earn only 4% per annum. The rate increases slightly to 4.25% for 15-29 days, 4.5% for 30-45 days, and 4.80% for 46-90 days. This tiered approach encourages depositors to opt for longer tenors to benefit from higher returns.
Tamilnad Mercantile Bank's new FD rates aim to cater to a wide range of customers, from those seeking short-term liquidity to long-term savers looking for stable income. The emphasis on senior citizen benefits highlights the bank's commitment to supporting older depositors with better financial opportunities.
