In a non-callable fixed deposit, banks don’t allow customers to withdraw the FD prematurely. Due to this, banks offer slightly higher interest rates on non-callable FDs. According to Punjab National Bank’s website, a non-callable fixed deposit can fetch 5 basis points higher interest than a callable FD. Between one year and up to three years, non-callable FDs offer an interest rate of 5.15%, while those with a premature withdrawal facility offer a rate of 5.1%. They can decide the tenure based on their cash flow requirement and open a non-callable deposit.

Source: Mint May 31, 2021 15:45 UTC