Financial services which often involve sensitive transaction such as savings, insurance, loans and investments need to be high in service quality to build trust and credibility among customer. In financial transactions customers need to feel secure that their investments are managed with care and expertise. Service quality of financial services plays a fundamental role to the functioning of modern economies. The present study compares the service quality of Public Banks and India Post Office Financial Services using the SERVQUAL model which assesses five dimensions of service quality: tangibles, reliability, responsiveness, assurance and empathy. The present study employs a cross-sectional survey approach with data collected from 200 respondents through a structured questionnaire. The findings of the study reveal significant differences in service quality perceptions between the public banks and India Post’s financial services. Public Banks are perceived to offer better tangibles and higher levels of empathy compared to India Post which indicates superior physical facilities and more personalized customer services by public banks. However no significant difference in reliability, responsiveness and assurance between the two service providers is found. The study finds a significant positive relationship between service quality dimensions and overall customer satisfaction which highlights the importance of tangibles and empathy dimension in enhancing customer satisfaction. The research intends to shed light on the differences in service quality of public banks and India post. The recommendations based on the study result will help both the service providers to understand customer priorities and enhance their satisfaction.