Statement is used for static SQL statement with no input and output parameters, PreparedStatement is used for dynamic SQL statement with input parameters and CallableStatement is used for dynamic SQL satement with both input and output parameters, but PreparedStatement and CallableStatement can be used for static SQL statements as well. CallableStatement is mainly meant for stored procedures.

PreparedStatement gives better performance when compared to Statement because it is pre-parsed and pre-compiled by the database once for the first time and then onwards it reuses the parsed and compiled statement. Because of this feature, it significantly improves performance when a statement executes repeatedly, It reduces the overload incurred by parsing and compiling.

http://www.precisejava.com/javaperf/j2ee/JDBC.htm#JDBC110

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