NO premature withdrawl penalty

I don't know; but I don't think that there is anything like NO premature withdrawal penalty on FD. It may have different name but there should be something similar.

HDFC Bank also allows opening FD at any branch in India.

As far as premature withdrawal penalty is concerned, different banks apply it differently.

Most banks will apply 0.5% or 1% less interest rate.
Some banks will give you the rate for the tenure of the FD. Since this is almost always lower for lesser tenures, it acts as a penalty. Say you booked an FD for 10% for 12 months, but withdraw in 6 months. The rate for 6 months FD is 9%. So you will get 9% instead of 10%.

Whichever way, you will lose some interest.

as far as i know obc and bank of india don't charge any pmp and uco bank don't charge on senior citizen schemes whereas sbi has no pmp if fd is less than 90 days. best out of the lot is idbi which not only gives high interest but has high interest rates on long term deposits like 10 years and so on. remember to open fd in several denominations and time frame like if you have 50k open with 10k denomination 1 of 10 years, 1 of 7 years, 1 of 5 years, 1 of 2 years and 1 of short term say 270 days to 1 year. use compounding quaertaly reinvest interest if you plan to open fd with idbi or obc which yields high returns on long terms. by using denomintaion you can avail quick cash at time of needs by surrending fd of shortest term or close short term policy if there is increase in rates and convert it to longer term.

Thanks 2012.... gud suggestions..