High-Yield Savings Accounts Slam Americans With Larger Tax Bills

Savers who took advantage of the high interest rates being offered by high-yield savings accounts and certificates of deposit last year are waking up to a larger tax bill from Uncle Sam.

With US taxes due April 15, many taxpayers are facing a higher income-tax liability from the interest they earned through these accounts, potentially reducing their tax refund or even pushing them into a higher tax bracket.

“Taxpayers are aware they’re making money on those accounts, but the reality really hits you hard when you look at your consolidated 1099 brokerage statements or get your 1099-INT tax forms from banks and other financial institutions ...