Bank FD Comparison Tool
Tamilnad Mercantile Bank vs Canara Bank Fixed Deposit Comparison 2026
Compare Fixed Deposit interest rates, maturity amounts, and features between Tamilnad Mercantile Bank (Private Sector) and Canara Bank (Public Sector). Analyze the security of public sector banking versus the convenience of private sector services.
TMB
Private Sector
VS
Canara Bank
Public Sector
TMB: Min ₹1,000
Canara Bank: Min ₹1,000
Security vs Convenience
DICGC Insured up to ₹5 Lakhs
Compare Your FD Returns
Adjust the parameters below to see how returns compare between the two banks
₹
Five Lakhs rupees
₹1,000₹20,00,000
years
1 year10 years
Interest Rate Comparison
Interest Rates by Tenure
General rates across different tenures
Current selection: 3 years (1095 days) -TMB: % |Canara Bank: %
Side-by-Side Rate Comparison
Direct comparison of general rates
TMB
Canara Bank
Highlighted = Your selected tenure
Feature Comparison
Features | TMB Private Sector | Canara Bank Public Sector |
|---|---|---|
Minimum FD Amount | ₹1,000 | ₹1,000 |
Current Interest Rate(Selected Tenure) | % | % |
Premature Withdrawal Penalty | 1% | 1% |
Official Rate Source | View Official Rates | View Official Rates |
Tamilnad Mercantile Bank
Private Sector Bank
Key Advantages:
Private Sector Bank established in 1921
Consistently offers higher FD rates for several years
Special TMB400 deposit scheme at 7.00% for senior citizens
Low cost of operations compared to other banks
Senior citizen benefit of +0.10% on most tenures
Online FD booking through Internet & Mobile Banking
Strong presence across South India with 500+ branches
ISO 27001 certified for information security
NRE and FCNR deposits available for NRIs
Canara Bank
Public Sector Bank
Key Advantages:
Government-owned bank with strong security
Wide branch network across India
Competitive interest rates
Canara Shikhar special scheme (444 days)
Online FD booking facility
Senior citizen benefits
Important: Fixed Deposit Safety & Insurance Coverage
₹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 TMB (₹5L) + Canara Bank (₹5L)
For ₹15 lakhs: Add a third bank to the mix
Best of Both: Combine TMB (convenience) with Canara Bank (security)
💡 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
Choose TMB If:
- •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
Choose Canara Bank If:
- •Minimum amount: ₹1,000
- •Public Sector banking preference
- •Government-owned bank with strong security
- •Wide branch network across India
- •Competitive interest rates
Best Strategy:
- •Split large amounts across both banks
- •Keep ≤₹5L per bank for insurance
- •Use TMB for convenience
- •Use Canara Bank for stability
- •Review rates periodically
Explore more FD comparisons
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