A certificate of deposit (CD) can be a valuable tool for diligent savers. CDs allow you to earn higher interest rates than you would with a traditional savings account, and your returns are guaranteed with a fixed rate throughout your CD’s term. The catch is that you can’t touch your money until your CD matures (that is, without incurring penalties). While CD earnings can be considerable, there are tax implications to keep in mind. The IRS treats CD interest earnings as taxable income, which you must pay ...