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post-office vs public sector

Post Office vs Union Bank FD

Side-by-side comparison of India Post Office and Union Bank of India FD schemes — rate bands, senior bonuses, compounding and end-to-end maturity on identical inputs. All figures use last-published rates as on 2025-09.

Post Office vs Union BankFD side-by-side

rates as on 2025-09
1,00,000
3.00
6.90
6.35
Post Officepost-office
Effective rate
6.9% p.a.
Invested
₹1,00,000
Interest
₹22,781
Maturity
₹1,22,781
Union Bankpublic
Effective rate
6.35% p.a.
Invested
₹1,00,000
Interest
₹20,805
Maturity
₹1,20,805
// verdict
Post Office wins by ₹1,977 over the chosen tenor — a difference of 1.64% in maturity value.

Post Office FD Interest Rates

last published — 2025-09
TenorGeneral (% p.a.)Senior (% p.a.)
1 year (TD)6.906.90
2 years (TD)7.007.00
3 years (TD)7.107.10
5 years (TD)7.507.50
Rates shown are the last-published indicative rates from India Post Office as on 2025-09. Verify the current schedule on the bank's official website before booking a deposit — actual rates may change without notice.

Union Bank FD Interest Rates

last published — 2025-09
TenorGeneral (% p.a.)Senior (% p.a.)
7 – 45 days3.504.00
46 – 179 days4.505.00
180 days – 1 year6.356.85
1 year – 2 years6.807.30
2 – 3 years6.607.10
3 – 5 years6.507.00
5 – 10 years6.507.00
Rates shown are the last-published indicative rates from Union Bank of India as on 2025-09. Verify the current schedule on the bank's official website before booking a deposit — actual rates may change without notice.

// post office vs union bank at a glance

Post Office

Sovereign-backed savings & deposit schemes operated by the Department of Posts, with fixed quarterly notified rates.

  • · Established 1854, HQ New Delhi
  • · FD rate band: 6.90% – 7.50%
  • · Senior bonus: 0 bps
  • · Min deposit: ₹1,000
Union Bank

Public sector bank with consistent 1-3 year rates and accessible RD windows starting from ₹100 per month.

  • · Established 1919, HQ Mumbai
  • · FD rate band: 3.50% – 6.80%
  • · Senior bonus: 50 bps
  • · Min deposit: ₹1,000

Both India Post Office and Union Bank of India are scheduled commercial banks regulated by the Reserve Bank of India, so the contract terms, KYC requirements and DICGC ₹5 lakh deposit insurance are identical. The real differentiation is in the rate card and the special-tenor product mix.

The FDcalculator above lets you tune principal, tenor, and each bank's applicable rate independently — useful when the two banks lead at different slabs (a common scenario when one runs a special-tenor offer like 444 / 555 / 700 days).

// frequently asked questions

Post Office's FD rates span 6.90%–7.50% p.a. while Union Bank spans 3.50%–6.80% (as on 2025-09). The 'better' bank depends on your exact tenor — use the calculator above to compare on the slab you actually plan to book.