Featured Savings Rates

Zero-Coupon CD Tips And Tax Issues

Ken Tumin
Ken Tumin   |     |   5,935 posts since 2009

Riki at BestCashCow has a good overview of zero-coupon CDs and some of the issues to consider:

One type of brokered CD is called a zero-coupon CD. The term “coupon” refers to interest. Zero-coupon CDs do not bear interest, but are issued at a substantial discount from face amount (also called “par amount”).