College Savings Bank, a Division of NexBank SSB CDs have been a popular way to save when seeking predictability and stability for your funds—with good reason, given the unpredictable markets. CDs are the easiest way to save for college or any other future needs. They usually offer a higher interest rate than regular savings or money market accounts. Basic CDS are taxable. Every January you will be mailed a Form 1099, reporting the total annual interest earned for federal and state income tax purposes. Thus, there is no lump sum tax liability when your CD matures.