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The interest you earn the account can remain in the certificate of deposit or be transferred to a Discover Bank Money Market Account or to another bank account. Discover Bank will notify you 3 weeks before the certificate of deposit matures with renewal options. If you do not respond the CD will automatically be renew for the same term at the prevailing interest rate. There is a 9 calendar–day grace period after your CDs maturity date, during which you can make changes to your account, such as adding or withdrawing funds or opting not to renew, without paying an early withdrawal penalty. As with all certificate of deposit accounts there are early withdrawal penalties. The penalty for a 5 year CD is 6 months of simple interest on the amount withdrawn. For a 7 year certificate of deposit and a 10 year certificate of deposit the amount is 9 months simple interest on the amount withdrawn. |
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