Interest earned on CDs is taxed as ordinary income at your individual federal income tax rate.
You may want to ask your investment advisor if municipal bonds may be better than CDs.
https://turbotax.intuit.com/tax-tips/investments-and-taxes/guide-to-investment-bonds-and-taxes/L1RRz...
Most all interest income earned on municipal bonds is exempt from federal income taxes. When you buy muni bonds issued by the state where you file state taxes, the interest you earn is usually also exempt from state income taxes. If you buy muni bonds issued by another state, you'll still typically avoid federal taxes, but you'll likely be subject to state (and possibly local) income taxes.
