diff --git a/activerecord/lib/active_record/persistence.rb b/activerecord/lib/active_record/persistence.rb
index 935f0353658b7..1d03c0e921002 100644
--- a/activerecord/lib/active_record/persistence.rb
+++ b/activerecord/lib/active_record/persistence.rb
@@ -930,7 +930,7 @@ def _create_record(attribute_names = self.attribute_names)
           )
 
           returning_columns.zip(returning_values).each do |column, value|
-            _write_attribute(column, value) if !_read_attribute(column)
+            _write_attribute(column, type_for_attribute(column).deserialize(value)) if !_read_attribute(column)
           end if returning_values
         end
 
diff --git a/activerecord/test/cases/persistence_test.rb b/activerecord/test/cases/persistence_test.rb
index 62ac4b54021ea..29cd0b6e7db90 100644
--- a/activerecord/test/cases/persistence_test.rb
+++ b/activerecord/test/cases/persistence_test.rb
@@ -63,6 +63,8 @@ def test_fills_auto_populated_columns_on_creation
       assert_not_nil record.modified_time_without_precision
       assert_not_nil record.modified_time_function
 
+      assert_equal "A", record.binary_default_function
+
       if supports_identity_columns?
         klass = Class.new(ActiveRecord::Base) do
           self.table_name = "postgresql_identity_table"
diff --git a/activerecord/test/schema/postgresql_specific_schema.rb b/activerecord/test/schema/postgresql_specific_schema.rb
index 42d87fbd17f23..53cc9cbd8aa8d 100644
--- a/activerecord/test/schema/postgresql_specific_schema.rb
+++ b/activerecord/test/schema/postgresql_specific_schema.rb
@@ -41,6 +41,7 @@
     t.string :char2, limit: 50, default: "a varchar field"
     t.text :char3, default: "a text field"
     t.bigint :bigint_default, default: -> { "0::bigint" }
+    t.binary :binary_default_function, default: -> { "convert_to('A', 'UTF8')" }
     t.text :multiline_default, default: "--- []
 
 "