2 weeks, 5 days ago

Which Fixed Deposit Is Right for You? Callable Vs Non-Callable FDs Compared

When investing in fixed deposits, most people focus on interest rates and tenure, but not the type of FD they’re investing in. Callable FDs allow early withdrawals while non-callable FDs lock in your funds until maturity. Banks offer higher rates on non-callable FDs as the funds stay locked in, giving them stable capital with lower liquidity risk. Interest rates and returns - Non-callable FDs provide higher interest rates because they require you to keep your funds locked in for the full term without the option for premature withdrawal. Your choice depends on your needs—callable FDs provide access to funds but lower returns, while non-callable FDs offer better interest but keep your money locked in.

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