In most cases, the interest earned on a zero coupon CD is taxable each year over the course of the account's term. Bond investing is ideal for investors who want to earn regular interest until their bond matures. Really delete this review?
However, this arrangement could create some tax benefits and breaks, especially for account holders who want to avoid logging a large lump sum of interest income at the end of the term. CDs are great investment opportunities for investors.
Forgot password. It differs from a traditional CD in that interest payments are paid out as a lump sum at the date of maturity, as opposed to being disbursed on a yearly basis. What is a zero coupon CD?