Discover Bank now offers penalty-free withdrawals to 12-Month CD certificate of deposit account holders who become unemployed.

Responding to the needs of savings-conscious customers who need some peace of mind during these times of economic uncertainty, Discover Bank will allow penalty-free early withdrawals from 12-month certificates of deposit for new and renewing account holders who lose their jobs.

“If you’re trying to make some headway by investing in your future, we don’t want the fear of an unforeseen job loss to keep you from enjoying the higher interest rates our 12-month CDs offer,” said Steve Olszewski, vice president of deposit products at Discover Bank. “In these days when unemployment is at a 25-year high, our customers can be confident that they can access their money if they need it without paying penalties.”

To be eligible, account holders must open or renew a 12-month CD with a minimum $2,500 balance between July 1 and Dec. 31, 2009. If the account holder involuntarily loses his or her job during the term of the CD, they will be allowed to make a partial withdrawal of the funds or close the account with a full return of their principal and any credited interest with no penalties. The program also applies to self-employed people under certain circumstances.

Discover CD rates consistently beat the national average and interest is compounded daily. Discover Bank is making this penalty-free offer on its most popular 12-month CD term at the same rate at which it would normally offer any CD for the same term. Accounts are FDIC-insured. For more information go online to www.discoverbank.com/12monthcd. Discover Bank also offers CDs with terms from three months to 10 years, Money Market accounts and IRA CDs and online savings accounts.