Normally you do not pay tax until you receive the income. The bank or broker will send you a 1099-INT showing the interest you earned if you get more than $10 of interest in a year.
If you are only paid at CD maturity (of > 1 yr I think) then you may need to pay tax on the "original issue discount" (OID). I would expect you would receive a 1099-OID for that.
Bottom line, if you are paid monthly, quarterly, semi-annually, or something like that you should not have to report the income until you receive it and you should get a 1099-INT for it (if > $10).
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