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Old 03-31-2023, 03:48 PM
Boomer Boomer is offline
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Quote:
Originally Posted by retiredguy123 View Post
A typical CD earns taxable interest annually, even if the CD does not pay the interest to the CD owner. So, you get a 1099-int every year and must pay tax on it. It doesn't matter when the interest is actually paid to the owner. This would also apply to a brokered CD.

I think that some banks will allow you to withdraw interest earned at any time without paying a penalty.

Thanks. It has been so long since I have had CDs, and I never took interest along the way, but it did appear on statements, as I recall.

I thought these brokered CDs seemed like they paid lump sum interest or some such thing. Still seems weird to me, but thank you for verifying that it just is.

Boomer