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(e) IRA CDs

(i)      RMD: To request a required minimum distribution 

a correctly completed distribution form 

(“Distribution Form”) must be received by us 

on or before December 15th. If your correctly 

completed Distribution Form designating a 

required minimum distribution is received after 

December 15th, we make no guarantee that the 

required minimum distribution will occur before 

December 31st.

(ii)   Transfer: To request a bank–to-bank transfer 

during the IRA CD Grace Period, a correctly 

completed transfer form (“Transfer Form”) from 

the receiving institution must be received by 

us before the end of your IRA CD Grace Period. 

Transfer Forms that are not complete, signed 

and dated by the receiving institution will not 

be honored. If the Transfer Form is received 

by us after the end of the Grace Period, your 

transfer distribution may be subject to an Early 

Withdrawal Penalty.

(iii)  Rollover: To request a rollover distribution or 

any other type of distribution from your IRA CD 

during the IRA CD Grace Period, a Distribution or 

Transfer Form must be completed and received 

by us before the end of your IRA CD Grace Period. 

Distribution and Transfer Forms that are not 

correctly completed, signed and dated will not 

be honored. If your Distribution or Transfer Form 

is received after the end of the Grace Period, 

your distribution may be subject to an Early 

Withdrawal Penalty.

(iv)   Please see Section 36 for more information on 

Early Withdrawal Penalties.

(ii)  Money Market Account and Savings Account 

Withdrawals 

Federal law limits the number of certain types of 

withdrawals and transfers from your Money Market 

Account or Savings Account to a combined total of six 

(6) per calendar month per Account. The chart below 

describes the transactions that are limited and those 

that are not.

Withdrawals and Transfers Transactions

Limited to a combined  

total of six (6) per calendar 

month per Account:

Unlimited number of  

withdrawals and transfers: 

•  Checks (applicable to Money 

Market Accounts only)

•  Point-of-sale (“POS”)- Debit Card 

transactions (applicable to Money 

Market Accounts only)

• ACH transfers

• Wire transfers

• Telephone transfers

• Online transfers

•   Transfers to repay a loan at 

Discover Bank

•  Made in person

•  At an ATM (applicable to Money 

Market Accounts only)

• By messenger

•   By mailing a request or speaking 

to a telephone representative to 

have an official bank check mailed  

to you

    If during any calendar month you exceed these 

transaction limitations, we may assess an Excessive 

Withdrawal Fee or refuse to pay each transaction in 

excess of the limitations. Transactions are counted based 

on the posting date. If you exceed these transaction 

limitations on more than an occasional basis, we reserve 

the right to close your Money Market or Savings Account 

or change the Account to a Checking Account. We retain 

the right to require at least seven (7) days’ prior written 

notice for any withdrawal.

 (iii)  Checking Account Withdrawals

     You may make unlimited withdrawals or transfers 

of any type from your Checking Account up to your 

available balance and in accordance with the 

transaction limitations stated in this Agreement, 

regardless of the withdrawal method.

   (b)  Posting Order for Checking, Money Market, and  

Savings Accounts

       The following chart describes the order in which items 

will be posted to your Account:

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Posting Order for Checking Accounts,

Money Market Accounts, and Savings Accounts

Beginning of each 

Business Day

•  Internal transfers scheduled for the  

next Business Day or later

Throughout the Business 

Day as we receive the 

transactions

• ACH deposits

• ATM withdrawals

•  POS debit card purchases (including 

temporary holds and settlements)

• Overdraft Protection Service holds

• Cash and official bank check withdrawals

• Cash deposits

• Internal transfers scheduled for the same day

• Incoming and outgoing wire transfers

•  ACH withdrawals you initiate from your 

Account to an external account

•  Checks that you deposited to your Account 

that have been returned unpaid

•   Any related fees

End of each  

Business Day

• Check deposits

•  Other Debits (checks, bill payments 

initiated by you through the Account 

Center, and ACH withdrawals initiated 

externally)

• Other fees 

• Interest

To provide prompt credit when a check drawn on Discover 

Bank is deposited to another Discover Bank account, 

we debit the account on which the check is drawn at the 

same time that we credit the account to which the check 

is deposited. In this circumstance, the debit may be 

processed prior to other credits to the same account.

Generally, items posted to your Account are paid in the 

order they are received by type of transaction. However, 

for transactions processed at the end of the Business 

Day, if there are insufficient funds in your Account to pay 

all debits presented, we will post and pay checks, bill 

payments initiated by you through the Account Center, and 

ACH withdrawals initiated externally in order from lowest 

to highest dollar amount. If an item presented to us for 

payment is being returned unpaid, the return transaction 

and related fees will post to your Account on the following 

Business Day.

(c) Insufficient Funds

Generally, we will not pay or honor any withdrawal or 

transfer against your Account if there are insufficient 

available funds to satisfy the full amount. In this case, we 

will assess an Insufficient Funds Fee and the transactions 

will be returned unpaid. A maximum of one (1) Insufficient 

Funds Fee per day will be assessed. We may charge 

applicable fees to your Account, even if there are 

insufficient available funds to pay the fees, and you agree 

to deposit funds to pay any resulting overdraft.

For Insufficient Funds information regarding the Discover 

Student Deposits Program, see Section 7.

(d) Unusual Transactions and Competing Claims

•  We reserve the right to delay or decline any transaction on 

your Account if we suspect fraud, possible illegal activity, 

an account take over or any other unusual activity that may 

affect your Account, or receive competing claims regarding 

your Account. 

•  Further, we reserve the right to suspend or freeze the funds 

in your Account or any other Accounts you maintain with us 

if you don’t provide information we request or we believe 

your Account may be subject to unauthorized, irregular, 

illegal or fraudulent activity. If we freeze or suspend any 

of your transactions on your Account, we may provide you 

notice as soon as is reasonably possible. However, we 

reserve the right to not provide such notice if we believe 

that such notice could result in a security risk to the owner 

of the funds, the Account or to us.

(12) CHECKING REWARDS AND INCENTIVES

(a) Earn Rewards: 

You may earn Debit Card Cashback Bonus rewards based on 

qualifying debit card purchases made using your Discover 

Cashback Debit Account debit card. You will earn Debit Card 

Cashback Bonus rewards of 1% of the qualifying debit card 

purchases on up to $3,000 in purchases per calendar month.

(i)  Except as provided in Section (ii) below, qualifying debit 

card purchases include:

(a)   Point-of-sale purchases made with your debit card; 

and 

(b)   Online purchases made with your debit card.

Debit card purchases that are not eligible for 1% Debit Card 

Cashback Bonus rewards include:

(a)  Transactions conducted at an ATM,

(b)  The purchase of money orders or other  

cash-equivalents,* and

(c) Peer-to-Peer (P2P) payments.**

 

    (d) Cash over portion of a point-of-sale purchase; and

 

    (e)  Loan payments or account funding made with your 

debit card, such as auto loan payments or prepaid 

card loading.

 

    (f)  Purchases made using third-party payment accounts 

(services such as Venmo

®

 or PayPal™, who also 

provide P2P payments) unless otherwise agreed  

to by us.

*Cash-equivalents include, but are not limited to: currency, 

coins, negotiable items not yet deposited, U.S. treasury bills 

and commercial paper.

**P2P payments are defined as electronic money transfers 

made from one individual’s bank account or credit card to 

another individual’s bank account or credit card through a P2P 

payment application.

Merchants who accept Discover debit cards are assigned 

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