Private Sector
Public Sector
AU Small Finance Bank vs Union Bank of India Recurring Deposit Comparison2025
Compare interest rates, features, and returns between AU Small Finance Bank (Private Sector) and Union Bank of India (Public Sector). Compare the security of public sector banking with the convenience of private sector services.
Five Thousand rupees
Interest Rate Comparison
General rates across different tenures
Current selection: 3 years (1095 days) -AU Bank: % |Union Bank: %
Direct comparison of general rates
Feature Comparison
| Features |  AU Bank Private Sector |  Union Bank Public Sector |
|---|---|---|
Minimum RD Amount | ₹500 | ₹100 |
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 includes both principal and accrued interest for RDs.
⚠️ Recommendation:
Keep your total deposits (RDs + FDs + Savings) under ₹5 lakhs per bank. If you need larger investments, distribute them across multiple banks.
Smart Distribution Strategy
Multiple RDs: Open RDs in both AU Bank and Union Bank
Family Accounts: Use different family members' accounts for additional coverage
Best of Both: Combine AU Bank (convenience) with Union Bank (security)
💡 Pro Tip:
RDs are perfect for goal-based investing. You can open separate RDs for different financial goals across different banks to maximize returns and safety.
Key Insights & Recommendations
- • Minimum amount: ₹500
- • Private Sector banking preference
- • Small Finance Bank with competitive rates
- • Premium FD rates up to 7.50% for senior citizens
- • Digital banking with AU 0101 digital savings account
- • Minimum amount: ₹100
- • Public Sector banking preference
- • Government-owned bank with strong security
- • Merged entity strength
- • Pan-India presence
- • Open multiple RDs for different goals
- • Keep ≤₹5L per bank for insurance
- • Use AU Bank for convenience
- • Use Union Bank for stability
- • Review rates periodically
Ready to Invest in Recurring Deposits?
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