Discover Bank Account Or Service Complaint

Discover Bank account or service department,

(CD) Certificate of deposit Account opening, closing, or management Florida

On - -, 2016, I applied on line for a 7 year IRA CD with Discover Bank. The rate was 2.23 percent ( 2.25 APY ). The CD would be funded by direct transfer from my - brokerage account. I was told that I would receive the required forms to sign and return within - to - business days. As of - -, I still had not received the paperwork. I was out of town the following week, and received the paperwork Monday - -. That same day I returned the required paperwork via standard mail to Discover. The next couple of weeks I periodically called Discover to find out the status of the transfer of cash from -. I received various answers from them, but was all but assured that the rate had not changed since the first of 2016 and most likely would not change before the - was funded. I finally found a Discover agent on the phone who told me that the transfer had to be initiated by -. The same day, I downloaded, signed and sent the transfer request directly to the - Transfer of Assets ( TOA ) office. - expeditiously sent the form


From - - through -/-/-, I checked my Discover account on line to see if the funds had been received. My account showed - balance BUT still showed the interest rate of 2.23 percent ( - APY ). On Monday, - -, I again called Discover Bank. I was told that the funds posted on - - ( Sunday ). On - - the funds still did not show up in my account, BUT the rate still showed - percent ( - APY ). On - -, I checked the account on line only to find out that the funds had posted, BUT the rate had now changed to - percent ( - APY ). I immediately called Discover Bank and eventually talked to their supervisor, -. She stated that the rates went down on - - and that to undo the 7 year IRA - would cost me - moths worth of interest. At first she told me that Discover had received the transfer on - -, BUT then back tracked and said the money was received on -. At no time was I notified of the rate reduction prior to the funding of the account. Even on -/-/-, when I checked the account on line, it still showed 2.23 percent. - 's response was " you get the current rate when the account is funded '' The current rate shown on my account when it was funded was 2.23 percent. If I had known of the rate decrease, I could have stopped the funding and cancelled the transfer. After having the CD for one day, Discover now wants to charge me 2 years interest for undoing the transaction. They allow NO grace period to see if the agreed upon rate has changed and they do not inform you of any proposed change. I would like to reiterate that 1. the entire transaction took from - - to - - to complete ; 2. there was no indication or notification that the rate would change substantially downward ( including the rate shown on my account through - - when accessing on line ) ; 3. once Discover received the transfer, there was no grace period to allow me to accept or reject the substantially lower rate ; and 4. even though Discover has held my funds for one day, they want two years of interest to undo the transaction. As a side note, when I returned the required signature forms, I received a letter a week later stating that the forms were incomplete. I called up Discover and they said the forms were complete, that it was their mistake. I talked to Discover 's agent a few days later, wondering why the funds had not transferred. They said they would send me the appropriate forms. When I received those forms, they were forms for transferring funds from Discover, not to Discover. Again, I called Discover and was told that the transfer had to be initiated by -