Private Sector
Public Sector
IDFC First Bank vs Union Bank of India Fixed Deposit Comparison 2025
Compare interest rates, features, and returns between IDFC First Bank (Private Sector) and Union Bank of India (Public Sector). Compare the security of public sector banking with the convenience of private sector services.
Interest Rate Comparison
General rates across different tenures
Current selection: 3 years (1095 days) -IDFC First: % |Union Bank: %
Direct comparison of general rates
Feature Comparison
| Features |  IDFC First Private Sector |  Union Bank Public Sector |
|---|---|---|
Minimum FD Amount | ₹10,000 | ₹1,000 |
Current Interest Rate (Selected Tenure) | % | % |
Premature Withdrawal Penalty | 1% | 1% |
Official Rate Source | View Official Rates | View Official Rates |
Key Advantages:
Key Advantages:
₹5 Lakh Insurance Limit
The Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance coverage of up to ₹5 lakhs per depositor per bank. This means if you deposit more than ₹5 lakhs in a single bank, only ₹5 lakhs is guaranteed by the government.
⚠️ Recommendation:
Never deposit more than ₹5 lakhs in a single bank. If you have larger amounts, distribute them across multiple banks to ensure full insurance coverage.
Smart Distribution Strategy
For ₹10 lakhs: Split between IDFC First (₹5L) + Union Bank (₹5L)
For ₹15 lakhs: Add a third bank to the mix
Best of Both: Combine IDFC First (convenience) with Union Bank (security)
💡 Pro Tip:
You can also open FDs in different family members' names in the same bank to get additional ₹5 lakh coverage for each account holder.
Key Insights & Recommendations
- • Minimum amount: ₹10,000
- • Private Sector banking preference
- • Private sector bank with digital-first approach
- • Competitive FD rates up to 7.5% for senior citizens
- • Premium rates on select tenures (450 days - 2 years)
- • Minimum amount: ₹1,000
- • Public Sector banking preference
- • Government-owned bank with strong security
- • Merged entity strength
- • Pan-India presence
- • Split large amounts across both banks
- • Keep ≤₹5L per bank for insurance
- • Use IDFC First for convenience
- • Use Union Bank for stability
- • Review rates periodically
Ready to Invest in Fixed Deposits?
Use our individual bank calculators for detailed planning