Discover Bank Changes CD Early Withdrawal Fees

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By , Staff Writer
Posted on Wed Feb 20, 2013, Last Updated on Wed Feb 20, 2013

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Discover Bank is making some changes to the fees that is charged when a customer opts to withdraw funds from their certificates of deposit (CDs) before maturity.

According to a new deposit agreement, effective March 15, 2013 on CDs opened and renewed after this date, the early withdrawal penalty will be:

• With a term of less than one (1) year, we will deduct three (3) months’ simple interest on the Issue Amount withdrawn.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term of one (1) year, but less than four (4) years, we will deduct six (6) months’ simple interest on the Issue Amount withdrawn.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withdrawn.
• With a term of seven (7) years or greater, we will deduct 15 months’ simple interest on the Issue Amount withdrawn.

Until March 14, 2013, the penalty structure is:

• With a term of less than one (1) year, we will deduct three (3) months’ simple interest on the Issue Amount withdrawn.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withdrawn.
• With a term greater than five (5) years, we will deduct nine (9) months’ simple interest on the Issue Amount withdrawn.

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