What does Federal interest withheld mean ?

Question

I was checking my savings account transactions today and I saw any entry which said Federal interest withheld .Though the amount debited from the account was very less (a few cents) I am just confused about what this transaction is..I have raised a request asking about it but can someone please explain it to me ?

Thanks

Answer 1

It sounds like part of the interest was withheld for Federal Income tax purpose. Double-check with the bank. They should be able to answer you right away.