Discrepancy in FD Maturity Payout from IndusInd Bank – A Case to Review

[Fini7777]

Hey everyone,

Here’s a recent issue I faced with IndusInd Bank while redeeming one of my Fixed Deposits — sharing this so others can stay alert and double-check when their FDs mature.

🔹 I had an FD of ₹1,00,000 which matured today. Based on the interest rate, the expected maturity amount was ₹1,12,370.
🔹 However, only ₹1,08,880 was credited to my savings account
Upon checking the closed FD statement, I noticed:

• ₹1,10,245 was debited from the FD
• So there's a shortfall of ₹1,365 between the FD debit and the actual credit
• Additionally, ₹2,125 was deducted (on ₹12,370 interest), which is higher than the standard 10% TDS — despite my PAN being linked

My RM couldn’t explain the deductions clearly and mentioned that no TDS was shown on their end — and advised me to escalate the issue to the Nodal Desk. I’m currently doing that.
What could be the reason for this? Is this an error, or am I missing something?
Has anyone else faced something similar? Would love to hear about your experience.

@cardio_guy @SSV @Anindya98 @NAB @sjmajumder @newmakerhere @hender @BVC @CosmicCat @BeingIncog @Beyond @helloworld

 

[Half Human]

Do you have any other FD with IndusInd?

 

[Fini7777]

Do you have any other FD with IndusInd?

Y e s

 

[Half Human]

Were any of them matured in the last FY?
Also can you give an idea of the interest earned on all the FD's combined for the last FY? Will be available on Interest certificate

 

[Half Human]

Normally this happens when the TDS of not just this FD, but all your FD's last FY interest are deducted together against that one last maturing FD for the FY...

It is normal..

 

[Fini7777]

Were any of them matured in the last FY?
Also can you give an idea of the interest earned on all the FD's combined for the last FY? Will be available on Interest certificate

Interest Paid: 36003.14
Interest Accrued but Unpaid: 7235.93
Total Interest: 43239.07

Discrepancy observed: 3721

 

[hender]

Hey everyone,

Here’s a recent issue I faced with IndusInd Bank while redeeming one of my Fixed Deposits — sharing this so others can stay alert and double-check when their FDs mature.

🔹 I had an FD of ₹1,00,000 which matured today. Based on the interest rate, the expected maturity amount was ₹1,12,370.
🔹 However, only ₹1,08,880 was credited to my savings account
Upon checking the closed FD statement, I noticed:

• ₹1,10,245 was debited from the FD
• So there's a shortfall of ₹1,365 between the FD debit and the actual credit
• Additionally, ₹2,125 was deducted (on ₹12,370 interest), which is higher than the standard 10% TDS — despite my PAN being linked

I haven't submitted Form 15G, and my total interest income for the current financial year is around ₹51,000 (including this FD).

My RM couldn’t explain the deductions clearly and mentioned that no TDS was shown on their end — and advised me to escalate the issue to the Nodal Desk. I’m currently doing that.
What could be the reason for this? Is this an error, or am I missing something?
Has anyone else faced something similar? Would love to hear about your experience.

@cardio_guy @SSV @Anindya98 @NAB @sjmajumder @newmakerhere @hender @BVC @CosmicCat @BeingIncog @Beyond @helloworld

RM hands up 🙌, that's strange 🤔, at first place.

Days and rate of FD ?

What are your findings till now, from the narrative received, except shared above ☝️

 

[Trust Me]

Hey everyone,

Here’s a recent issue I faced with IndusInd Bank while redeeming one of my Fixed Deposits — sharing this so others can stay alert and double-check when their FDs mature.

🔹 I had an FD of ₹1,00,000 which matured today. Based on the interest rate, the expected maturity amount was ₹1,12,370.
🔹 However, only ₹1,08,880 was credited to my savings account
Upon checking the closed FD statement, I noticed:

• ₹1,10,245 was debited from the FD
• So there's a shortfall of ₹1,365 between the FD debit and the actual credit
• Additionally, ₹2,125 was deducted (on ₹12,370 interest), which is higher than the standard 10% TDS — despite my PAN being linked

I haven't submitted Form 15G, and my total interest income for the current financial year is around ₹51,000 (including this FD).

My RM couldn’t explain the deductions clearly and mentioned that no TDS was shown on their end — and advised me to escalate the issue to the Nodal Desk. I’m currently doing that.
What could be the reason for this? Is this an error, or am I missing something?
Has anyone else faced something similar? Would love to hear about your experience.

A few questions:

* What was the tenure of the FD? Did it span multiple FYs? In that case there could be a possibility of TDS in previous years.

* TDS would reduce the final payout compared to what was projected on the original FD advice. Did you try a reconcilation with your own calculations?

* There is also the possibility of consolidated TDS out of one of multiple accounts, as Half Human has suggested. Look at all your accounts put together.

In my experience IndusInd has been one of the better banks, payouts matching my own calculations always (except once, when the quarterly interest compounding fell short by some small amount. I let it pass because the discrepant amount was small).

Some other banks (like Axis, IDBI, Bandhan, perhaps even ICICI, IIRC, are less honorable, -- taking recourse to funny ways to calculate interest (where 2 + 2 doesn't necessarily equal 4) to cheat customers out of some interest. For some reason RBI allows it!
.

 

[Fini7777]

Were any of them matured in the last FY?

None

All my FDs will mature in the next few months, and none of my FDs matured in FY2024- 25.

 

[Half Human]

Interest Paid: 36003.14
Interest Accrued but Unpaid: 7235.93
Total Interest: 43239.07

Discrepancy observed: 3721

10% of this interest paid and accrued but not paid are deducted in from the total matured amount bro

This is how most of the banks deduct TDS.

Out of that one FD that matures..

If you get to the bank, they will say the same thing only .

 

[Fini7777]

A few questions:

* What was the tenure of the FD? Did it span multiple FYs? In that case there could be a possibility of TDS in previous years.

18 months, YES, booked in 2023

* TDS would reduce the final payout compared to what was projected on the original FD advice. Did you try a reconcilation with your own calculations?

Yes, approximately matching with last FYs interest paid amount

* There is also the possibility of consolidated TDS out of one of multiple accounts, as Half Human has suggested. Look at all your accounts put together.

No, I don't have any FDs with other banks/accounts

In my experience IndusInd has been one of the better banks, payouts matching my own calculations always (except once, when the quarterly interest compounding fell short by some small amount. I let it pass because the discrepant amount was small).

Some other banks (like Axis, IDBI, Bandhan, perhaps even ICICI, IIRC, are less honorable, -- taking recourse to funny ways to calculate interest (where 2 + 2 doesn't necessarily equal 4) to cheat customers out of some interest. For some reason RBI allows it!
.

 

[Trust Me]

18 months, YES, booked in 2023

Yes, approximately matching with last FYs interest paid amount

Does that mean the discrepancy is explained now?
.

 

[sjmajumder]

Hey everyone,

Here’s a recent issue I faced with IndusInd Bank while redeeming one of my Fixed Deposits — sharing this so others can stay alert and double-check when their FDs mature.

🔹 I had an FD of ₹1,00,000 which matured today. Based on the interest rate, the expected maturity amount was ₹1,12,370.
🔹 However, only ₹1,08,880 was credited to my savings account
Upon checking the closed FD statement, I noticed:

• ₹1,10,245 was debited from the FD
• So there's a shortfall of ₹1,365 between the FD debit and the actual credit
• Additionally, ₹2,125 was deducted (on ₹12,370 interest), which is higher than the standard 10% TDS — despite my PAN being linked

I haven't submitted Form 15G, and my total interest income for the current financial year is around ₹51,000 (including this FD).

My RM couldn’t explain the deductions clearly and mentioned that no TDS was shown on their end — and advised me to escalate the issue to the Nodal Desk. I’m currently doing that.
What could be the reason for this? Is this an error, or am I missing something?
Has anyone else faced something similar? Would love to hear about your experience.

@cardio_guy @SSV @Anindya98 @NAB @sjmajumder @newmakerhere @hender @BVC @CosmicCat @BeingIncog @Beyond @helloworld

10% of this interest paid and accrued but not paid are deducted in from the total matured amount bro

This is how most of the banks deduct TDS.

Out of that one FD that matures..

If you get to the bank, they will say the same thing only .

I have FDs only in Canara Bank and they don't operate in this manner. They credit interest quarterly to the FD account and debit 10% TDS against each interest credit to the same FD account and also gives a statement if asked for which clarifies all credits and debits.

 

[Fini7777]

Does that mean the discrepancy is explained now?
.

I have FDs only in Canara Bank and they don't operate in this manner. They credit interest quarterly to the FD account and debit 10% TDS for each interest credit to the same FD account and also gives a statement if asked for which clarifies all credits and debits.

I checked the interest certificates and found the following:

• In FY 2023–24: TDS was not applicable as the total interest earned was ₹10,512(cumulative) — which is under the ₹40,000 limit.
• In FY 2024–25: Interest earned was ₹36,003(cumulative) — again, below the ₹40,000 TDS threshold.
• In FY 2025–26: The remaining interest of approximately ₹7,236 was paid today, and around ₹3874 (FY2023 -24 unpaid intr) will be paid upon the maturity of the FDs.

The FD was booked on 11th October 2023 (FY 2023–24) and matured today in FY 2025–26.
The interest income was spread across three financial years.

Therefore, TDS should have been considered on a year-wise basis, not deducted in a lump sum during FY 2025–26 — especially since the interest credited in each of the earlier years was below the ₹40,000 threshold.

I've observed in many other banks like HDFC, SBI etc, they will mention the TDS deductions(if any) in stmts, but here in IndusInd, I couldn't find anything as such

 

[Trust Me]

I've observed in many other banks like HDFC, SBI etc, they will mention the TDS deductions(if any) in stmts, but here in IndusInd, I couldn't find anything as such

IndusInd gives the interest certificate for the FY with their March statement.
.

 

[desiviru]

Don't fret. It is for TDS deducion. The TDS of other FD has been recovered from your current FD. That's all. Case closed, milord.

Get the refund next year if closed/matured in April or this AY if before March 31st, 2025.

 

[Fini7777]

IndusInd gives the interest certificate for the FY with their March statement.
.

Yes, but I couldn't see anywhere that TDS is deducted

 

[Fini7777]

Don't fret. It is for TDS deducion. The TDS of other FD has been recovered from your current FD. That's all. Case closed, milord.

Get the refund next year if closed/matured in April or this AY if before March 31st, 2025.

yes, I can get refund but have to wait for one yr for this (not a big deal)

but The issue is No TDS should have been deducted in FY2025–26, and IndusInd Bank’s deduction appears to be an error or lack of proper system handling

 

[desiviru]

Yes, but I couldn't see anywhere that TDS is deducted
View attachment 92193

This SS shows you have not been paid interest for period 12-01-2025 to 11-04-2025. It will be credited to your savings account directly now. It happens sometimes due to technical difficulties. Faced it with PNB but later it was auto credited next day.

So no TDS deudction here. And if it has been debited then you will see it in Form 26AS after they update for Apr-Jun qtr.

 

[Beyond]

Hey everyone,

Here’s a recent issue I faced with IndusInd Bank while redeeming one of my Fixed Deposits — sharing this so others can stay alert and double-check when their FDs mature.

🔹 I had an FD of ₹1,00,000 which matured today. Based on the interest rate, the expected maturity amount was ₹1,12,370.
🔹 However, only ₹1,08,880 was credited to my savings account
Upon checking the closed FD statement, I noticed:

• ₹1,10,245 was debited from the FD
• So there's a shortfall of ₹1,365 between the FD debit and the actual credit
• Additionally, ₹2,125 was deducted (on ₹12,370 interest), which is higher than the standard 10% TDS — despite my PAN being linked

I haven't submitted Form 15G, and my total interest income for the current financial year is around ₹51,000 (including this FD).

My RM couldn’t explain the deductions clearly and mentioned that no TDS was shown on their end — and advised me to escalate the issue to the Nodal Desk. I’m currently doing that.
What could be the reason for this? Is this an error, or am I missing something?
Has anyone else faced something similar? Would love to hear about your experience.

@cardio_guy @SSV @Anindya98 @NAB @sjmajumder @newmakerhere @hender @BVC @CosmicCat @BeingIncog @Beyond @helloworld

If rm could not explain it, then better to forward this issue to nodal desk.
If it's tds you can get refund by filing itr. (but rm is saying otherwise)
PS - Indusind RM can write complaint for you, just ask rm to forward ticket number or keep yourself in loop