Gifts are neither deductible for the donor nor taxable to the recipient.
Gifts received are not reported on your federal tax return, regardless of the amount received
The giver would be required to file a Form 709 Gift tax return if he/she gives over $14,000 to any single individual. Even then, the gifting will not be taxable until the sum total of all gifts exceeds the lifetime limit of $5,490,000
See the following:
https://www.irs.gov/pub/irs-pdf/f709.pdf
https://www.irs.gov/pub/irs-pdf/i709.pdf
Well if you change the name and ssn on the CD account they might have to pay the tax on the interest. Or are you giving it to them when it matures?
i was going to buy it in each of their names is that ok?
Yes, but be aware of Volvo Girl's assertion that they may be taxed on the interest.
One little wrinkle to @TurboTaxVinceL 's answer --- the US$ 5,490,000 floor before taxation kicks in is a unified figure-- total of all reportable gifts ( i.e. those that were above the annual fre gift limit ) & Estate . This amount is indexed to CPI till congress changes / Gift & Estate laws. Also be aware of generation skipping tax ( GST ) that may be applicable.