Can you avoid tax on an investment CD interest when it matures by rolling it over to another CD?

Question

Can you avoid tax on an investment CD interest when it matures by rolling it over to another CD?

Answer 1

The interest on a CD is taxable each year, not when the CD matures.

Each year the bank will send you a 1099INT showing the interest your CD has earned.  You report this on your tax return.

When the CD matures or whether you roll it over to another CD has no tax consequence.

Answer 2

No.

The interest is taxable regardless of what you do with the money.

Answer 3

Be smart and talk to your investment bank so that you don't get a fine for rolling it over.... they have a sneaky way of squeezing water out of a rock...

Answer 4

Any interest you are paid is taxable income.  Put the CD inside of a Roth IRA and you can earn interest tax free, and still have the ability to withdraw your principle.  

Answer 5

no, when you roll it over you received the interest at that point,

TAXES WILL BE DO AT YEARS END.  

Answer 6

No.