# Cd's

**URL:** <https://boards.straightdope.com/t/cds/131177>\
**Category:** Factual Questions\
**Created:** [October 7, 2002, 1:04pm UTC](https://boards.straightdope.com/t/cds/131177 "2002-10-07T13:04:32Z")\
**Posts on this page:** 7\
**Page:** 1

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**Author:** ![PurplePerson](https://avatars.discourse-cdn.com/v4/letter/p/ec9cab/32.png) [@PurplePerson](https://boards.straightdope.com/u/PurplePerson)\
**Post date:** [October 7, 2002, 1:04pm UTC](https://boards.straightdope.com/t/cds/131177/1 "2002-10-07T13:04:32Z")

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I did a search on Cd’s (the thing you put money in), but it said I must have more than 4 characters. I am sure I saw this covered before.

If a person puts money in a Cd, does one pay taxes on the principle when it is eventually withdrawn?

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**Author:** ![PurplePerson](https://avatars.discourse-cdn.com/v4/letter/p/ec9cab/32.png) [@PurplePerson](https://boards.straightdope.com/u/PurplePerson)\
**Post date:** [October 7, 2002, 1:08pm UTC](https://boards.straightdope.com/t/cds/131177/2 "2002-10-07T13:08:22Z")

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PS Why am I not allowed to edit my post? I spelled Cds wrong.

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**Author:** ![Mangetout](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mangetout/32/19_2.png) [@Mangetout](https://boards.straightdope.com/u/Mangetout)\
**Post date:** [October 7, 2002, 1:25pm UTC](https://boards.straightdope.com/t/cds/131177/3 "2002-10-07T13:25:25Z")

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Editing is not allowed here primarily (I believe) because it would allow persons having made unacceptable statements in a debate to withdraw them in such a way as to make their opponents look stupid or unreasonable (“Why are you asking me to defend that position; I never said any such thing!”), or possibly to remove the ‘evidence’ of insulting statements after they had done their damage, but before they were spotted by a moderator.

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**Author:** ![PurplePerson](https://avatars.discourse-cdn.com/v4/letter/p/ec9cab/32.png) [@PurplePerson](https://boards.straightdope.com/u/PurplePerson)\
**Post date:** [October 8, 2002, 11:57am UTC](https://boards.straightdope.com/t/cds/131177/4 "2002-10-08T11:57:59Z")

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Oooh. OK:) That makes sense.

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**Author:** ![Telemark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/telemark/32/372_2.png) [@Telemark](https://boards.straightdope.com/u/Telemark)\
**Post date:** [October 8, 2002, 12:57pm UTC](https://boards.straightdope.com/t/cds/131177/5 "2002-10-08T12:57:05Z")

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And to answer your question, no, you do not have to pay any additional taxes on your principle. It’s just like a savings account, only there are penalties (from the bank) for withdrawing your money early.

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**Author:** ![Early\_Out](https://avatars.discourse-cdn.com/v4/letter/e/6f9a4e/32.png) [@Early\_Out](https://boards.straightdope.com/u/Early_Out)\
**Post date:** [October 8, 2002, 2:34pm UTC](https://boards.straightdope.com/t/cds/131177/6 "2002-10-08T14:34:20Z")

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Like **Telemark** said, you don’t pay taxes on the principle, but you _do_, of course, pay taxes on the interest you’ve earned, just like a savings account or interest-bearing checking account.

For Google searching, look for “certificates of deposit.”

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**Author:** ![PurplePerson](https://avatars.discourse-cdn.com/v4/letter/p/ec9cab/32.png) [@PurplePerson](https://boards.straightdope.com/u/PurplePerson)\
**Post date:** [October 8, 2002, 5:20pm UTC](https://boards.straightdope.com/t/cds/131177/7 "2002-10-08T17:20:41Z")

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Thank you very much. You answered my question. I will check out Google.