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Introduction
A Recurring Deposit (RD) account is one, which lets you deposit a fixed amount every month for a fixed period. Each time you make a deposit the amount is added to the principal, and begins earning interest. The interest amount may also be reinvested into the scheme. Thus at the end of the period - called tenure or term - you get a substantial lump sum amount.
A recurring deposit is similar to a fixed deposit - even interest rates are same with most banks - the only difference being that in a Fixed Deposit you have to deposit a large amount at a time while a recurring deposit lets you make periodic smaller deposits.
About Tamilnad Mercantile Bank Recurring Deposit Rate
- Tamilnad Mercantile Bank Recurring Deposit Schemes
- ERD Online RD
- Kids RD
- Navarathnamala RD
- Siranjeevee RD
- Benefits of Tamilnad Mercantile Bank Recurring Deposit Account
- Tamilnad Mercantile Bank Recurring Deposit Interest Rates
- Tamilnad Mercantile Bank Senior Citizen Recurring Deposit Interest Rates
- Tamilnad Mercantile Bank RD interest rates for NRI Customers
- Tamilnad Mercantile Bank Recurring Deposit Calculator
- Who can open a Recurring Deposit account with Tamilnad Mercantile Bank?
- Advantages of Opening a Recurring Deposit account
- Disadvantages of Opening a Recurring Deposit account
- Tamilnad Mercantile Bank Recurring Deposit FAQs
Tamilnad Mercantile Bank Recurring Deposit Schemes
Tamilnad Mercantile Bank offers several different types of recurring deposit accounts.
- ERD Online RD
- Kids RD
- Navarathnamala RD
- Siranjeevee RD
Basic RD
- The account tenure can be 12 to 120 months in multiples of 12 only.
- The account can be closed on short notice. When closed, there might be a penalty depending on the cause.
- Nomination facility is available.
- Loans higher than the amount in deposit may be availed subject to certain conditions.
- If no deposits are made for 3 consecutive months, the account will be closed automatically.
- Depositors are required to pay their monthly instalments within 30 days of the due date.
- Recurring deposits can be opened with a deposit of INR 10 or multiples thereof.
ERD Online RD
Tamilnad Mercantile Bank E-connect lets you access your funds and transaction information anywhere in world. The ERD facility allows you to open a recurring deposit account online. Here are some of the features -
- Tamilnad Mercantile Bank account holders with an E-connect internet banking facility can open an ERD account. The operative savings account will be linked to the recurring deposit.
- Retail Inquiry and Retail NRI customers are not eligible for the ERD Online Recurring Deposit account.
- Premature closure is only permitted at branches.
- Deposit Account (DA) opened via Tamilnad Mercantile Bank E-connect facility cannot be transferred to other branches
- Minimum deposit is INR 100 and the maximum is 50 lakhs.
- Only an e-receipt will be issued for ERD accounts.
- Standing instructions for periodic deposits from the savings into recurring deposit account
Kids RD
The cost if education is rising every day. With a view to providing relief to parents, Tamilnad Mercantile Bank offers its customers a Kids Recurring Deposit, which allows them to deposit small amounts periodically with a view to receiving a lump sum payment at the time when it is required for higher education of the children. Some of the features of the scheme include -
- Minimum amount of deposit is INR 58.
- There is no maximum limit to for monthly deposits.
- The Minimum target sum at maturity is Rs. 10,000.
- 10 years is the minimum tenure available.
Navarathnamala RD
This product is a cross between fixed and recurring deposits. Key features include. The interest under the scheme is reinvested into the recurring deposit account as additional instalments.
- Instalments can be paid for 36, 48, or 60 months.
- An account may be opened for 60 months with 36 instalments being paid by the depositor and 24 instalments being paid by way of interest reinvestment.
- Similarly, under a recurring deposit of 120 months, the depositor may opt for 36 / 48 / 60 monthly deposits and reinvestment for 84 / 72 / 60 months respectively.
- Accounts may be opened singly, jointly, or by parents on behalf of minors.
- ECS facility is available.
- Pre-closures are allowed subject to certain conditions.
- Non-resident individuals can access the scheme.
Siranjeevee RD
This scheme is offered in collaboration with Reliance Life Insurance Company. Under this scheme, Tamilnad Mercantile Bank offers its customers life insurance in addition to interest on deposit. Key features include -
- Minimum monthly deposit should be INR 100.
- Maximum instalments of INR 10000 are permitted.
- No medical check-up is required for insurance.
- Loan may be availed against the amount of deposit.
- Nomination facilities are available.
- Tax rebates as applicable are available under the policy as far as insurance premium is concerned.
Benefits of Tamilnad Mercantile Bank Recurring Deposit Account
The following are the benefits of a Tamilnad Mercantile Bank recurring deposit account -
- It allows you to make small investments every month.
- It is the perfect solution for those who want to set aside a small amount each month.
- Tenures range from 6 months to several years.
- Interest rates are comparable to fixed deposits.
- There is no exposure to stock market risk.
- Interest rate remains fixed throughout the tenure.
- Nomination facility is available.
- You can convert the maturity amount directly into a Fixed Deposit by giving instructions to the bank.
Tamilnad Mercantile Bank Recurring Deposit Interest Rates
Tamilnad Mercantile Bank recurring deposit interest rates are effective from June 06, 2018 for Resident Customers
| Tenure | Interest Rate (per annum) |
|---|---|
| 6 Months | 6.25% |
| 9 Months | 6.75% |
| 12 Months | 7.30% |
| 15 Months | 7.30% |
| 24 Months | 7.30% |
| 27 Months | 7.40% |
| 36 Months | 7.40% |
| 39 Months | 7.25% |
| 48 Months | 7.25% |
| 60 Months | 7.25% |
| 90 Months | 6.50% |
| 120 Months | 6.50% |
Tamilnad Mercantile Bank Senior Citizen Recurring Deposit Interest Rates
Senior citizens will higher rate of interest rate on Tamilnad Mercantile Bank recurring deposit account when compared to normal accounts. Below is the interest rate that is currently applicable on Tamilnad Mercantile Bank recurring deposit account.
| Tenure | Senior Citizen Rates (per annum) |
|---|---|
| 6 Months | 6.75% |
| 9 Months | 7.25% |
| 12 Months | 7.80% |
| 15 Months | 7.80% |
| 24 Months | 7.80% |
| 27 Months | 7.90% |
| 36 Months | 7.90% |
| 39 Months | 7.75% |
| 48 Months | 7.75% |
| 60 Months | 7.75% |
| 90 Months | 7.00% |
| 120 Months | 7.00% |
Tamilnad Mercantile Bank RD interest rates for NRI Customers
| Tenure | Interest Rates p.a. for NRIs |
|---|---|
| 6 Months | N.A |
| 9 Months | N.A |
| 12 Months | 7.30% |
| 15 Months | 7.30% |
| 24 Months | 7.30% |
| 27 Months | 7.40% |
| 36 Months | 7.40% |
| 39 Months | 7.25% |
| 48 Months | 7.25% |
| 60 Months | 7.25% |
| 90 Months | 6.50% |
| 120 Months | 6.50% |
Tamilnad Mercantile Bank Recurring Deposit Calculator
If you are wondering how much you should deposit in order to earn a certain amount at the end of a certain period – say a year or 3 years – you can utilize the Tamilnad Mercantile Bank recurring deposit Calculator tool available on their website. This tool allows you to enter the desired start and end date – or term – of the recurring deposit and compute the interest as well as maturity amount for various amounts of periodic deposits. By varying the amount of deposit or term, you can compute the amount you will receive on maturity. Then depending on your budget and needs, you can determine the amount you wish to put into the recurring deposit.
While the computations are estimates and actual amounts may vary slightly depending on changing conditions and personal circumstances, the calculator gives you a fair idea about the amount you will receive.
Who can open a Recurring Deposit account with Tamilnad Mercantile Bank?
Following are the people who can open and recurring deposit account with Tamilnad Mercantile Bank.
- All Indian residents
- Members of Hindu Undivided Families (HUF)
- Private and public limited companies
- Trusts and societies
Advantages of Opening a Recurring Deposit account
- Ideal for people who cannot deposit a large initial lump sum for a fixed deposit but want to deposit small amounts on a regular basis.
- A recurring deposit account can be opened with small minimum amount.
- Lump sum received at maturity, along with the accrued interest amount.
- The rate of interest is higher as compared to an ordinary saving bank account
- Interest Rate earned is generally equal to that of an FD
- Flexible tenures to suit the budget of the individual
- Recurring deposit Interest rate is fixed so you are assured of a steady return
- Loan / overdraft facility available with some banks.
- More liquid than most investment instruments
Disadvantages of Opening a Recurring Deposit account
- If you need to withdraw from your recurring deposit due to a financial crunch, you might need to pay a penalty.
- The interest earned might be lower than other, riskier, forms of investment, say investing in mutual funds, etc. However, the money is safe and secure from market fluctuations.
Tamilnad Mercantile Bank Recurring Deposit FAQs
1. What is the minimum amount required to open a recurring deposit with Tamilnad Mercantile Bank?
The minimum opening balance for a regular recurring deposit with Tamilnad Mercantile Bank is Rs. 1000.
2. What is the minimum and maximum deposit period?
The minimum deposit tenure is 6 months and up to a maximum of 10 years.
3. How do I apply for a regular recurring deposit?
You can open a regular recurring deposit online through your Net banking account if you are an existing customer. Alternately, you can visit your nearest branch and submit the recurring deposit account application form.
4. What is the documentation required to open a recurring deposit account?
You will require the following documents:
- Filled-in application form
- Passport size photograph
- Proof of residence
- Introduction letter from an existing customer of Tamilnad Mercantile Bank (if required)
- Any other KYC documents as required by the bank
5. Does the recurring deposit have a lock-in period?
Yes, the recurring deposit account has a minimum lock-in period of one month.
6. I want to close the recurring deposit account, but it has only been one month. What are the charges?
In the case of premature closure within a month, no interest shall be paid and only your principal amount shall be returned.
7. Can I avail an overdraft facility?
Right now, there is no overdraft facility for recurring deposits. However, you may apply for a loan against deposit subject to certain conditions.
Tamilnad Mercantile Bank Recurring Deposit Rate - Customer Reviews
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