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Change To Discover Bank Deposit Agreement Terms For CD Early Withdrawal

Tuesday, February 19, 2013 - 12:46 PMDiscover Bank - Details
It appears Discover has changed the terms of its CD deposit agreement, starting after 3/15/2013. The early withdrawal penalty for 10-year CDs will almost double. See section 36 of the deposit agreement (second to last page at the bottom of the pdf).


Early Withdrawal Fees (for CDs opened or renewed through 3/14/13) 

For early withdrawal on Certificates of Deposit: 

•With a term of less than one (1) year, we will deduct three (3) months’ simple interest on the Issue Amount withdrawn.

•With a term of one (1) year up to and including five (5) years, we will deduct six (6) months’ simple interest on the Issue Amount 

withdrawn.

•With a term greater than five (5) years, we will deduct nine (9) months’ simple interest on the Issue Amount withdrawn.

  In some cases, the Early Withdrawal Fee may reduce the principal in the CD.

Early Withdrawal Fees (for new CDs opened, and existing CDs renewed, on or after  3/15/13 only)

For early withdrawal on Certificates of Deposit: 

•With a term of less than one (1) year, we will deduct three (3) months’ simple interest on the Issue Amount withdrawn.

•With a term of one (1) year, but less than four (4) years, we will deduct six (6) months’ simple interest on the Issue Amount withdrawn.

•With a term of four (4) years, but less than seven (7) years, we will deduct nine (9) months’ simple interest on the Issue Amount 

withdrawn.

•With a term of seven (7) years or greater, we will deduct 15 months’ simple interest on the Issue Amount withdrawn.

 
5
primaryprimary4 posts since
Oct 24, 2012
Rep Points: 40
1. Tuesday, February 19, 2013 - 1:16 PM
Thanks for the news. Sorry to see the larger EWP. At least the new EWP will not affect existing CDs.
3
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,743
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