Hi @Ginny-in-the-PNW
You’re seeing two different treatments because CDs aren’t all structured the same way, and that affects when interest is considered taxable.
In general, interest is taxable when it’s credited to you and available without a substantial restriction. So if one bank credited interest during the year and issued a 1099-INT, you’ll need to report it, even if the CD hasn’t matured yet. If the other bank doesn’t credit anything until maturity and didn’t issue a 1099-INT, then it’s usually reported when the CD matures.
Longer-term CDs (like over one year) can sometimes fall under OID rules, which may require reporting interest as it accrues, but banks typically handle that by issuing the appropriate tax form.
So the practical approach people typically take is simple: if you receive a 1099-INT (or 1099-OID), report it. If you don’t and nothing was credited to you, you generally wait until maturity.
If you’re opening CDs in the future, it can also help to look at how the interest is structured before committing. Some comparison tools, like CD Valet (a neutral, comprehensive CD marketplace listing over 40,000 verified, federally-insured CDs from banks and credit unions across the US), let you review term details and rate structures across institutions so you know what to expect ahead of time.
