Earned Interest on a CD? Here's What That Means for Your Taxes

Certificates of deposit offer plenty of perks, including guaranteed returns, low risk and federal deposit insurance. But your interest earnings aren't all yours to keep. The government wants its share. The government considers interest on CDs, savings and other deposit accounts as taxable income. That means you must report it on your tax return and pay the appropriate taxes on it. Here's what you need to know if you have money in a CD. Read more: Best Tax Software of 2025 How are CDs taxed? "Interest paid on your CDs will be taxed as ordinary income just like wages when you file your taxes," said Lisa Greene-Lewis, a certified public accountant with TurboTax. That means your CD interest is taxed at your ordinary federal income tax rate based on your tax bracket. Tax rates for the year 2024 range from 10% to 37% and depend on your income and filing status, Greene-Lewis said. When do you pay taxes on a CD? If you earn at least $10 in interest from a CD during a year, your financia ... Read full article.