Public Sector
Private Sector
Punjab National Bank vs Tamilnad Mercantile Bank Fixed Deposit Comparison 2025
Compare interest rates, features, and returns between Punjab National Bank (Public Sector) and Tamilnad Mercantile Bank (Private Sector). Compare the security of public sector banking with the convenience of private sector services.
Five Lakhs rupees
Interest Rate Comparison
General rates across different tenures
Current selection: 3 years (1095 days) -PNB: % |TMB: %
Direct comparison of general rates
Feature Comparison
| Features |  PNB Public Sector |  TMB Private Sector |
|---|---|---|
Minimum FD Amount | ₹500 | ₹1,000 |
Current Interest Rate (Selected Tenure) | % | % |
Premature Withdrawal Penalty | 1% | 1% |
Official Rate Source | View Official Rates | View Official Rates |
Key Advantages:
Key Advantages:
₹5 Lakh Insurance Limit
The Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance coverage of up to ₹5 lakhs per depositor per bank. This means if you deposit more than ₹5 lakhs in a single bank, only ₹5 lakhs is guaranteed by the government.
⚠️ Recommendation:
Never deposit more than ₹5 lakhs in a single bank. If you have larger amounts, distribute them across multiple banks to ensure full insurance coverage.
Smart Distribution Strategy
For ₹10 lakhs: Split between PNB (₹5L) + TMB (₹5L)
For ₹15 lakhs: Add a third bank to the mix
Best of Both: Combine PNB (security) with TMB (convenience)
💡 Pro Tip:
You can also open FDs in different family members' names in the same bank to get additional ₹5 lakh coverage for each account holder.
Key Insights & Recommendations
- • Minimum amount: ₹500
- • Public Sector banking preference
- • Heritage bank
- • Wide network
- • Government backing
- • Minimum amount: ₹1,000
- • Private Sector banking preference
- • Private Sector Bank established in 1921
- • Consistently offers higher FD rates for several years
- • Special TMB400 deposit scheme at 7.00% for senior citizens
- • Split large amounts across both banks
- • Keep ≤₹5L per bank for insurance
- • Use PNB for stability
- • Use TMB for convenience
- • Review rates periodically
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