I have had numerous cds amounting to a substantial amount of money with discover and only in the last 6 months have things gotten really bad with them. I have contacted customer service several times and gotten perfunctory replies that did not address any of my concerns. They have no customer service. They lie about this in all of their ads and promotions and also lie about having "great" rates. I sense that there are some real problems with this bank and it may be that they just don't want to deal with consumers any longer, at least in the cd market. So i will never buy another cd from them and strongly urge anyone reading this stay away from this bank. Btw, i had to give a one because there was no option for to give a zero.
Even our federal tax agency gives us a break when it comes to weekends and federal holidays as to when our income tax payment is considered late. As we older, conservative savers know very well, interest rates on savings have been paltry since the democrats decided to control the financial markets. Many of us have been driven to internet banking companies just to receive a 1% return on our savings. Well here is a big warning to those who attempt to withdraw their savings from one of these internet banks – discover bank of utah. My case is simple and probably not too unusual. I have a $50k ira cd deposited with discover bank. The cd matures on october 12, 2014 – a sunday.
I do receive notice of this event from the bank. On monday the 13th i attempt to close the account and request distribution. No luck here – a federal holiday – columbus day. Online, i discover that i must complete an ira distribution form and send it to the bank. I dutifully perform this and mail it on the 13th but of course no mail this day so it goes out on the 14th. Still ok i figure, the notice letter said discover bank must receive on or before oct. 21 or there will be consequences. What consequences you ask? Well severe ones. My $50k cd earned $500 for the entire year but ‘early withdrawal penalty’ will take one half of this away.
Unfortunately either due to our us postal service or discover bank’s internal mail system, my distribution request form did not land on the proper desk until october 22 – one day late according to discover bank management. Let’s get this straight, the government rules for this transaction dictates 10 days to close your account and get your money. Oct 12 is a sunday and october 13 is columbus day do not count – no actions can be taken on these days. By my count and even the irs’s count the elapsed days from october 14 to october 22 is less than 10 days.
We have our "Rainy day" fund at Discover bank. The fact that ACH transfers are much slower was not a big deal, because we don't plan on making withdrawals often. I wanted to leave that account alone, and open a second account for savings. At ING they ask "How much, where's the money coming from, and what do you want to call it". At Discover bank I needed to fill out a complete form with SSN, phones, addresses, occupations, etc.
After dutifully filling that out, the response was "Call us". When I called I was told "We are getting a lot of accounts, so we don't know when yours will be approved. We might approve it soon, or we might send you a letter asking for further information". Since there was a minimum opening deposit of $500, that much is sitting in limbo. I asked if I could cancel the process, but I was told that once it started there was nothing that could be done to stop it.
It's kind of surprising, Discover Card has excellent customer service. As far as Discover Bank, there ar much better ones out there.