A bill to amend the Internal Revenue Code of 1954 to provide that interest on certain nonnegotiable time deposit certificates shall not be treated as received or accrued until the earlier of the maturity or redemption of the certificate.

Amends the Internal Revenue Code to provide that interest earned on a nonnegotiable time deposit certificate which has a maturity of one year or less will not be treated as received or accrued until the earlier of its maturity date or the date on which it is redeemed. Excludes such certificates from classification as a discount instrument of indebtedness.