Use tax-advantaged accounts such as a traditional IRA, Roth IRA, or 401(k) if the CD is allowed inside the account
Buy municipal bond funds or municipal securities instead of taxable CDs if your goal is tax-free interest
Consider U.S. Treasury securities, which are exempt from state and local income tax
Hold CDs in a tax-deferred retirement account so interest is not taxed until withdrawal, if applicable
Choose a Roth account for qualified tax-free withdrawals, if eligible and allowed
Use a custodial or trust structure only with professional tax advice, if appropriate
Time CD maturities and interest payments to manage the tax year in which interest is reported
Use tax-loss harvesting elsewhere to offset taxable interest income, if you have capital losses
Keep CD interest below filing thresholds only if you otherwise are not required to file, where applicable
Consult a tax professional before using any strategy to reduce or defer tax on CD interest