Hello and thanks for your reply. My understanding is that if you have 5 year CD, you pay taxes on interest earned each year, even if not matured. This decreases the yield on the long-term CD. So, by the same token, foreign interest on CDs are also taxable each year, not when they mature. Not sure if this is in agreement with your post.
"What may come as a bit of a shock is that, with some Certificates of Deposit (CDs), you may have to pay taxes before you can even get your hands on that interest. " https://www.moneyrates.com/cd/when-is-tax-due-on-a-cd.htm
"While some interest income, such as the interest on most municipal bonds, is exempt from federal income taxes, most interest income, including the interest on certificates of deposit, is fully taxable. You have to report and pay taxes on any interest from your CD, even if the CD has not yet matured." https://finance.zacks.com/report-interest-cd-not-matured-federal-taxes-1678.html
