Private sector lender, TamilNad Mercantile Bank has announced a hike in interest rates of its fixed deposits.

Also the bank has introduced a new deposit scheme termed as '20/20 deposit'. The new deposit scheme will have a tenor of 20 months and 20 days.

The interest associated with this scheme has been set at 10.5% for general citizens while 10.75% for senior citizens.

Apart from the new scheme, the other deposit ranges have also seen an interest rate hike. For deposits of tenor 1 year, the interest now stands at 10.25%.

The interest rate has been increased by 100 bps for all maturities except for 91-179 days and 271 days to less than one year deposits.

The 91-179 days deposit will now earn the depositor an interest of 8% while that of 271 days to less than 1 year will earn interest of 8.25%.