Reported 3 months ago
Certificates of deposit (CDs) offer higher interest rates for savers, but the interest earned is considered taxable income by the IRS. To help mitigate or delay these taxes, individuals can hold CDs within tax-deferred retirement accounts like IRAs, utilize 529 plans for educational expenses, or invest in CDs through Health Savings Accounts (HSAs). By employing these strategies, savers can effectively manage their tax liabilities on CD earnings.
Source: YAHOO