Ramses Delgado, Banking Moderator
@ramses_delgado1
The Discover CD early withdrawal penalty depends on the original term length of your CD and is calculated based on simple interest earned. Here’s a breakdown:
- CDs with terms less than 1 year: 3 months of simple interest.
- CDs with terms from 1 to less than 4 years: 6 months of simple interest.
- CDs with terms from 4 to less than 5 years: 9 months of simple interest.
- CDs with terms from 5 to less than 7 years: 18 months of simple interest.
- CDs with terms of 7 years or longer: 24 months of simple interest.
These penalties are calculated on the amount withdrawn and may reduce the principal if the interest earned is insufficient to cover the penalty. For the most up-to-date information, contact Discover customer service at (877) 347-4055.
You can check the best CD rates available to ensure that whatever decision you make fits your financial goals and needs.
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