How Are CD Earnings Taxed?

CD earnings, also referred to as yields, are taxed as interest income by the IRS at your ordinary income tax rate.

Can you lose money on a CD?

If you invest in a non-insured or unregulated CD, you may take on more risk. The FDIC or NCUA does not back these types of CDs, and they may not have the same level of protection as traditional CDs.

Are CDs FDIC insured?

Yes, if the financial institution is FDIC-insured, then a CD deposit is insured for up to $250,000, like all other deposit accounts.

Garret Geitner, Author at Lendstart

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20 Mar, 2023 Updated: 23 Mar, 2023

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