Deposit Account Agreement

Discover Bank, Member FDIC BK.DAA.LIN.0624

For security purposes, the daily ATM withdrawal limit was reduced. The following terms apply:

Section 13(d): Debit Card Limits

• The following line will be updated to: “The daily ATM withdrawal limit for each Account

is the lesser of $510 or your available balance.”

Effective June 15, 2024, the following terms will apply:

Section 1: Definitions/Introduction & Various Sections

• The definition of “Affinity” will no longer include the American Association of

Individual Investors (AAII®) deposit program.

• Former AAII® deposit program through Discover Bank customers should use

1-800-347-7000 and DiscoverBank.com for servicing. Our U.S.-based customer

service agents are available to answer your questions, explain things, and take

the time to help you find ways to make the most of your money.

Important Changes to your Discover® Deposit Account Agreement

Section 36: Early Withdrawal Penalties; Account Opening Requirements; Service Charges

• There will no longer be a minimum opening balance requirement for

Money Market Accounts.

(continued)

Deposit

Account Agreement

Effective December 9, 2023

BK.DBATAGT.L.1123

Questions about your Account?

Call us Visit our website

General 1-800-347-7000 DiscoverBank.com

AAA Customers 1-888-204-8990 DiscoverBank.com/AAA

AAII Customers 1-800-529-6987 DiscoverBank.com/AAII

Deposit Account Agreement

Effective December 9, 2023

Table of Contents

1 DEFINITIONSINTRODUCTION 1

2 CUSTOMER INFORMATION AND ELIGIBILITY 2

3 AGREEMENT ACCEPTANCEW9 CERTIFICATION 3

4 FDIC INSURANCE 5

5 INTEREST 5

6 ACCOUNT OWNERSHIP 8

7 CREDIT AND CONSUMER REPORT USAGE 12

8 INCOME TAX REPORTING AND WITHHOLDING 12

9 CHECKS 14

10 ADDING MONEY TO YOUR ACCOUNT 15

11 WITHDRAWALS 18

12 CASHBACK DEBIT REWARDS AND INCENTIVES 21

13 DEBIT CARDS 24

14 FUND TRANSFERS 26

15 FUNDS AVAILABILITY HOLDS 28

16 STOP PAYMENT ON CHECKS 32

17 ACCOUNT TRANSFER OR ASSIGNMENT 32

18 STATEMENTS AND ERROR RESOLUTION 33

19 CD RENEWAL OPTIONS 34

20 RIGHT OF SETOFF 34

21 OVERDRAFT PROTECTION SERVICE 35

22 POWER OF ATTORNEY 35

23 PRIVACY AND DISCLOSURE OF ACCOUNT INFORMATION 36

24 ACCOUNT CLOSURE 36

25 TRANSACTION CORRECTIONS, REVERSALS, AND DELAYS 38

26 AMENDMENTS, ACCOUNT CHANGES, AND NOTICES 38

27 ELECTRONIC FUND TRANSFER EFT 38

28 ERROR RESOLUTIONELECTRONIC FUND TRANSFERS 41

29 WAIVERS 41

30 LEGAL PROCEEDINGS 41

31 ABANDONED ACCOUNTS 42

32 SEVERABILITY 42

33 TELEPHONE COMMUNICATIONS 42

34 LIMITATION OF LIABILITY 43

35 ARBITRATION OF DISPUTES 43

36 EARLY WITHDRAWAL PENALTIES; ACCOUNT OPENING

REQUIREMENTS; SERVICE CHARGES 46

Thank you for choosing Discover Bank

®.

This Deposit Account Agreement

includes the terms and conditions you need to know about your Discover

Bank

deposit Accounts.

Please read this Agreement carefully. This Agreement covers, among other

things:

Our obligations to you

Your obligations as an Accountholder

How we may amend the Agreement and send you notices and

disclosures

Your agreement to waive a jury trial

Your agreement to arbitrate disputes by binding arbitration (and your

right to reject arbitration)

Your agreement to waive your class-action rights

Limitations on our liability to you

Our mutual agreement that Delaware law will control this Agreement

You can always call our knowledgeable customer service team anytime at

1-800-347-7000 (1-888-204-8990 for AAA customers or 1-800-529-6987

for AAII customers). Our U.S.-based customer service agents are available

to answer your questions, explain things, and take the time to help you find

ways to make the most of your money.

DEPOSIT ACCOUNT AGREEMENT

Effective December 9, 2023

1 DEFINITIONSINTRODUCTION

The following is a list of terms used throughout this Deposit Account

Agreement (“Agreement”):

“Account” means your Discover

Certificate of Deposit Account

(“Non-IRA CD Account”), Discover Individual Retirement

Arrangement Certificate of Deposit Account (“IRA CD”), Discover

Cashback Debit Checking Account (online only, also referred to as

“Cashback Debit Account”), Discover Personal Checking Account,

(branch only, also referred to as “Personal Checking Account”),

Discover Money Market Account (“Money Market Account”), and/

or a Discover Savings Account (“Savings Account,” which includes

Discover IRA Savings, Discover Statement Savings Account

(branch only), and Discover Online Savings Account (online only),

as applicable);

“Affinity” means customers of the AAA

or AAII

deposit programs

through Discover Bank. Products in such programs are Non-IRA CD

Accounts, IRA CD Accounts, Money Market Accounts, and Online

Savings Accounts;

“Branch” means the Discover Bank retail banking office in

Greenwood, Delaware;

“Business Days” are Monday through Friday, excluding Federal

Reserve Bank holidays;

“CD” includes both “Non-IRA CD Account” and “IRA CD Account,”

unless otherwise specified;

“Checking” includes both “Cashback Debit Account” and “Personal

Checking Account,” unless otherwise specified;

“Debit Card” means a Discover Cashback Debit Account Debit Card,

a Discover Personal Checking Account Debit Card, or a Discover

Money Market Account Debit Card;

“EFT” means Electronic Fund Transfer;

“Existing Customer” means a customer who has a Discover

Checking, Savings Account or Money Market Account open and

funded for at least 30 days;

“IRA” includes an IRA CD and an IRA Savings Account, unless

otherwise specified;

“New Customer” means a customer who has not had a Discover

Checking, Savings Account, or Money Market Account open and

funded for at least 30 days;

“Taxpayer Identification Number” (“TIN”) means an identification

number used by the Internal Revenue Service (IRS). For the

purposes of this Agreement, the term includes Social Security

Number (“SSN”), Employer Identification Number (“EIN”), and

Individual Taxpayer Identification Number (“ITIN”).

“we,” “us,” “our,” and “Discover” refer to Discover Bank, a Delaware-

chartered bank;

“you,” “your,” and “Accountholder” refer to each person or entity in

whose name an Account is held or who has authority to operate

the Account, as well as any permitted assignee or successor in

interest to the Account.

This Agreement, together with any amendments or addendums to these

terms and conditions or other agreements, with respect to specific

products or services that we provide you concerning your Accounts and

services, governs your Accounts with Discover Bank. Please read and

keep this Agreement for your records. You agree to use your Accounts

only for personal, family, or household purposes and not for business or

other non-personal purposes. You accept this Agreement as described

in Section 3. This Agreement supersedes any prior agreements or

communications that you may have had with us. The headings contained

herein are provided for convenience only and are not substantive terms.

Your Account is subject to applicable clearinghouse rules. Your Account

is being opened in and is located in Delaware. Except where noted, your

Account and this Agreement are governed by Delaware and Federal

law. If Delaware and Federal law are inconsistent, or if Delaware law is

preempted by Federal law, then Federal law governs. You may reject the

Arbitration of Disputes as set forth in Section 35, including the waiver

of your right to a jury trial. You must follow the procedures set forth in

Section 35 if you want to reject the arbitration agreement.

2 CUSTOMER INFORMATION AND ELIGIBILITY

(a) Customer Information

To help the government fight the funding of terrorism and

money laundering activities, Federal law requires financial

institutions to obtain, verify, and record information that

identifies each individual and entity that opens an Account.

What this means for you:

When opening an Account, we will ask you to provide your name,

U.S. physical address (no P.O. Boxes), Social Security Number

(“SSN”) or Employer Identification Number (“EIN”), Date of Birth for

individuals, and other information that will help us to identify you.

You may also be asked to provide a copy of your driver’s license,

state ID card, or other identifying documents.

It is your responsibility to maintain and promptly update any

changes in the identifying information you provided to us at

Account opening or during the time your Account is open. Some

identifying information, such as physical address, mailing address,

phone number, and email address, can be updated online through

the Account Center or you can update this information by calling us

at 1-800-347-7000 (1-888-204-8990 for AAA customers or 1-800-

529-6987 for AAII customers).

(b) Eligibility

(i) To open a new Account, each Account owner must be a U.S.

citizen, U.S. resident alien or other U.S. person, and at least

18 years old, and have a valid SSN or EIN and a valid physical U.S.

address. To open an Account under the Delaware Uniform

Transfer to Minors Act, you must be at least 21 years old.

(ii) Y ou (for joint Accounts, the Primary Accountholder as defined

in Section 3) are required to be Account Center registered to

maintain your Cashback Debit Account. Failure to register and

maintain registration in the Account Center will result in closure

of your Cashback Debit Account.

(iii) We do not open or maintain Accounts for customers with

foreign tax status (e.g., W-8 filing status). We only open and

maintain Accounts for consumers who can certify their W-9

status. If you notify us that you are no longer eligible to W-9

certify, we will close your Accounts as described in Section 24.

(iv) Affinity customers are not eligible to open Cashback Debit

Accounts, Personal Checking Accounts, or IRA Savings

Accounts under the AAA or AAII deposit programs through

Discover Bank.

(v) There may be additional eligibility requirements imposed at

our discretion. We reserve the right to decline to open an

Account for you for any lawful reason.

3 AGREEMENT ACCEPTANCEW9 CERTIFICATION

As a condition to open and maintain an Account with us, you must do

the following:

(i) Indicate your acceptance of the Agreement.

a. For Accounts opened online, the acceptance of the

Agreement is included as part of the online application.

b. For Accounts opened by phone, fax, mail, or at the Branch,

the acceptance of the Agreement can either occur online

for eligible Accounts, on the Signature Card, or on the

application. We must receive your acceptance of the

Agreement before any debits, including withdrawals, are

permitted on your Cashback Debit Account, Personal

Checking Account, Online Savings Account, Statement

Savings, Money Market Account, or Non-IRA CD Account.

c. You also accept the Agreement by opening or using the

Account.

(ii) Complete W-9 Certification. If we do not receive a completed

W-9 certification from the Accountholder whose name appears

first on the Account (“Primary Accountholder”) or already

have an applicable signed W-9 on file, the Account(s) may be

subject to backup withholding, as set forth in Section 8(b), or we

may close the Account(s) and return the funds to you, without

interest, by mail or other reasonable means as determined by us

and you will not be entitled to any special incentives that may

have been offered to you for opening your Account.

a. For Accounts opened online, W-9 certification is included as

part of the online application, as needed.

b. For Accounts opened by phone, fax, mail, or at the Branch,

W-9 certification can either occur online for eligible

Accounts, on the Signature Card, or on the application.

(iii)(a) New IRA Plans: (1) If you open a new IRA Plan(s), you will have

60 days (starting with your IRA application date) to return the

correctly and fully completed IRA application and Signature

Card (“IRA Documents”). You will have an additional 60 days

from the date we receive the completed IRA Documents to

return the IRA contribution form(s) (“Contribution Form(s)”)

and fund your IRA. If we do not receive the signed IRA

Documents within 60 days from your application date, or if we

do not receive the Contribution Form(s) and funding within

60 days from the date we receive the signed IRA Documents,

your application will be deemed abandoned and your IRA

will not be opened. If you provided ACH funding instructions

or internal transfer funding instructions during the IRA

application process, the instructions will be executed once the

correctly and fully executed IRA Documents and Contribution

Form are received by us. Any type of contribution received

prior to our receipt of the IRA Documents and Contribution

Form will be returned. However, if a check is received prior

to the receipt of the IRA Documents or the Contribution

Form, we will hold it for up to 30 days. If the correctly and

fully executed IRA Documents and Contribution Form are not

received, the check will be sent back to the address noted on

the application after 30 days. IRA funding checks will not be

deposited and no interest will be paid until the IRA is opened.

We are entitled to a reasonable amount of time after receipt of

your IRA Documents and Contribution Form to process them,

open your IRA, and post your contribution. (2) If you revoke a

new IRA Plan(s), you will have 10 days from the date we receive

your fully completed IRA application. If you choose to revoke

your IRA Plan during those 10 days, we will close all of your IRA

Accounts in the revoked IRA Plan and return any funds to you

without interest. For IRA CD Accounts, we will also waive the

applicable Early Withdrawal Penalty.

(b) For Existing IRA Plans: If you open an IRA under an existing

IRA Plan, you will have 60 days starting with the application

date to return the Signature Card and Contribution Form

and fund your IRA. If we do not receive the signed Signature

Card, signed and correctly completed Contribution Form,

and funding within 60 days starting with the application

date, your application will be deemed abandoned and

your IRA will not be opened. If you provided ACH funding

instructions or internal transfer funding instructions during

the application process, the instructions will be executed

once the correctly and fully executed Signature Card and

Contribution Form are received. Any type of contribution

received prior to our receipt of the Signature Card and

Contribution Form will be returned. However, if a

check is received prior to the receipt of the Signature Card

and Contribution Form, we will hold it for up to 30 days. If the

correctly and fully executed Signature Card and Contribution

Form are not received, the check will be sent back to the IRA

Plan mailing address after 30 days.

We are entitled to a reasonable amount of time after receipt

of your Contribution Form and contribution to process them,

open your IRA, and post your contribution to it.

Plan for a prior year contribution, all documents, including

the correctly completed IRA application, Signature Card,

and Contribution Form must be returned to Discover Bank,

along with the prior year contribution, and received and

processed by us by the tax filing deadline. We are entitled to

a reasonable amount of time after receipt to process your

prior year contribution and post it to your IRA. If funding via

check, the check must be postmarked on or before the tax

filing deadline.

(iv) For Formal Trust Accounts, as defined in Section 6(c)(i), we

must receive a correctly and fully completed Formal Trust

Account Application and Trustee Certification Form (“Trust

Documents”) before we will open your Account. If a check is

received prior to the receipt of the correctly and fully completed

Trust Certification Form, we may hold it for up to 30 days. If the

correctly and fully completed Trust Documents are not received,

the check may be returned. Formal Trust Account funding

checks will not be deposited and no interest will be paid until the

Formal Trust Account is opened.

4 FDIC INSURANCE

Funds in Discover Bank Accounts are insured by the Federal Deposit

Insurance Corporation (“FDIC”) to the maximum

allowed by law. For more detailed information on FDIC

insurance coverage, contact the FDIC directly by visiting

www.fdic.gov or by calling 1-877-ASKFDIC (1-877-275-3342), (TDD:

1-800-925-4618).

5 INTEREST

• Interest is compounded daily, credited monthly, and calculated

on a 365-day basis for interest-bearing Accounts.

• We use the daily balance method to calculate the interest on your

Account. This method applies a daily periodic rate to the balance

in the Account each day.

• If we receive your deposit before your Non-IRA Savings, Money

Market, or Non-IRA CD Account is opened, interest will begin

to accrue on the deposit on the Business Day your Account is

opened. Once an Account is opened, interest begins to accrue on

a deposit on the Business Day we receive your deposit.

• For contributions to an IRA under an IRA Plan, interest begins

to accrue on a contribution on the Business Day we post the

contribution to your Account. See Section 3(iii) for additional

information regarding opening an IRA and a new IRA Plan and

Section 10(f) regarding contributions to an IRA Savings Account.

• For internal transfers to interest-bearing Accounts, interest will

begin to accrue the next Business Day if the internal transfer is

completed on or after 10 p.m. Eastern Time.

(a) Certificates of Deposit

(i) Non-IRA CD Accounts

• The maturity date or term, interest rate, and annual

percentage yield (“APY”) in effect on your application date for

your Non-IRA CD Account will be disclosed to you at the time

of application. However, maturity date, the interest rate, and

APY on your Non-IRA CD Account will be determined and the

interest rate will be fixed based on your funding date, not your

application date.

• Once we receive funding for your Non-IRA CD Account, your

interest rate and APY will be determined as of the date of

receipt of the funds and the interest rate will be fixed for the

term of the Non-IRA CD Account.

• If we receive your Non-IRA CD Account funding within ten (10)

days starting with the date that your application is submitted,

your Non-IRA CD Account interest rate and APY will be the

highest of the interest rates we offered (applicable to your

Non-IRA CD Account) on either: (1) the date you submitted

your application, (2) the date your Account was opened, or (3)

the date we received your funding. If we receive your funding

more than ten (10) days (including your application date) after

your application date, your Non-IRA CD Account interest rate

and APY will be the interest rate and APY we offer (applicable

to your Non-IRA CD Account) on the date we receive the

funding. Please note, even though you are provided with an

Account number to facilitate funding, and you may receive

communications thanking you for opening an Account, the

Account is not considered open until we receive the funding

for the Account.

• The interest rate, APY, and maturity date for your Non-IRA

CD Account will be confirmed in your Welcome Kit.

• You will have 45 days to fund your Non-IRA CD Account

starting from the date you apply for the Account.

(ii) IRA CD Accounts

• Your IRA CD Account maturity date and interest rate are fixed

for the term of your IRA CD Account.

• Your IRA CD Account interest rate and APY are determined at

the later of when (i) a correctly completed IRA application,

Signature Card, and Contribution Form have been received by

us and (ii) your IRA CD Account has been funded.

• We will send you written confirmation of the interest rate, APY,

and maturity date of your IRA CD Account after it is opened

and funded.

(iii) Interest Earned During the Grace Period

Interest will not accrue during the Grace Period (as defined

in Section 19); however, if some or all of your CD is renewed, a

catch-up accrual will be processed at the end of your Grace

Period for interest earned at the interest rate that was in effect

on the date your CD matured (the “CD Renewal Rate”). The

catch-up accrual will be calculated as follows:

a. If your CD renews automatically (the default setting), or

as a result of your affirmative instructions, interest at the

CD Renewal Rate will be applied to the amount of your

renewed CD at the end of your Grace Period retroactively

to the start of your Grace Period.

b. If a partial withdrawal is made during the Grace Period, the

withdrawn funds will earn interest at the CD Renewal Rate

from the maturity date to (and including) the day before

the withdrawal.

c. If you add to your principal during the Grace Period,

(1) interest at the CD Renewal Rate will be applied

retroactively to the start of your Grace Period for the

original principal amount, and (2) interest at the CD

Renewal Rate will begin to accrue for the amount that you

add as of the date of the additional deposit.

Interest will not be earned during the Grace Period if you

elect not to renew your CD as specified in Section 19.

(iv) General

(a)(i) General CD Terms:

• Any confirmation letter or notice you receive after opening a

CD Account is not a certificate or other instrument and is not

transferable, except on our records.

• The APY assumes interest remains on deposit until maturity.

• A withdrawal of interest or principal will reduce earnings.

• Interest will be paid to and remain in your CD if:

– You do not specify an interest disbursement option;

– The Account designated to receive interest payments is

closed; or

– Interest payments are returned.

(ii) Non-IRA CD Accounts:

• During the term of your Non-IRA CD Account, interest

earned on and posted to your Non-IRA CD Account may:

(i) remain in your Non-IRA CD Account, (ii) be sent via an

official bank check, or (iii) be transferred to an eligible

Discover Account that you own.

(iii) IRA CD Accounts:

• During the term of your IRA CD Account, interest earned on

and posted to your IRA CD Account may: (i) remain in your

IRA CD Account, or (ii) be transferred to an eligible Discover

Account that you own, subject to you providing written

distribution instructions.

(b) Money Market Accounts and Savings Accounts

Your Money Market Account or Savings Account earns interest

at interest rates established by us on a daily basis. Money Market

Account interest rates and APYs are based on your Account balance

and the applicable balance/interest rate tier. At our discretion, we

may change the interest rate and APY on your Money Market Account

or Savings Account at any time. Any change in the interest rate and

APY will be effective on the date of such change. Interest is accrued

daily after debits and credits are posted to your Account.

Cashback Debit Accounts do not earn interest. However, special

promotion bonuses and credits may be treated as interest for tax

information reporting and other purposes. Personal Checking Accounts

do not earn interest or Cashback Bonus

rewards.

6 ACCOUNT OWNERSHIP

The following chart sets forth the Account type and eligible

ownership categories:

Cashback

Debit and

Personal

Checking

Online

Savings and

Statement

Savings

Money

Market

Non-IRA

IRA Savings

and IRA CD

Individual

Account

P P P P

Joint

Account

P P P P

Formal Trust

Account

P P

Informal Trust

Account (POD)

P P P P

Custodial

Account

P P P

Estate

Account

P P

Individual

Retirement

Account

Guardianship

Account

P P P

We limit each person to one (1) Cashback Debit Account,

including individual and joint Accounts. However, if you

currently own more than one (1) Cashback Debit Account, then

the limit does not apply to you except that you may not open

any additional Cashback Debit Accounts unless your existing

Cashback Debit Accounts are closed.

Except as to how ownership and beneficiary designations

determine to whom we pay the Account funds, we make no

representations regarding the effect of ownership and beneficiary

designations or whether such ownership and beneficiary

designations are appropriate. If you have questions about the legal

or tax implications of these ownership types, please consult your

attorney or tax advisor. The following is a more detailed description

of the ownership categories.

109

(a) Individual Account

An individual Account is an Account held solely by one natural

person (i.e., a living person) without a designated beneficiary.

(b) Joint Account

• A joint Account is an Account held by more than one natural

person. All joint Accounts are established as joint tenancy

with right of survivorship only. Joint tenancy with right of

survivorship means that if an owner of a joint Account dies, the

balance in the joint Account passes to the remaining owner(s)

of the joint Account. We do not offer any other type of joint

Account (i.e., tenants in common or tenants by the entirety).

We may use any funds in a joint Account to pay a court or

government agency to satisfy a garnishment, levy, or similar

legal process that identifies any of the joint owners.

• If a joint Account is established without the signature or

agreement of one of the joint owners, we are not obligated to

accept instructions from that joint owner but may do so at our

discretion, and you agree to hold us harmless based on our

reliance upon your designation of the joint owner for whom a

signature or agreement was not provided.

• Any funds deposited to a joint Account by any of its owners

shall be owned by all joint owners.

• Debit card Cashback Bonus

rewards may be earned by all

joint Account owners, subject to the conditions and limitations

described in Section 12. Any debit card Cashback Bonus

rewards earned on a joint Account shall be owned and

redeemable by all joint Account owners.

• Each owner of a joint Account may deposit to, make

withdrawals or transfers from, or issue stop payment orders

with respect to the joint Account without notice to or consent

from any of the other owners of the joint Account.

• The joint Account may be closed by any joint owner. However,

a joint owner may not remove another joint owner from the

joint Account.

• Any action of one owner of a joint Account shall be binding

upon all owners of a joint Account.

• We may act upon the direction of one or more owners of the

joint Account without notice to or consent from any of the

other owners of the joint Account.

• Each owner of a joint Account is jointly and severally

responsible and liable for the acts and omissions of each of

the other owners of the joint Account. Each owner of a joint

Account agrees to release us from all liability in connection

with any instructions or payments we receive from any other

owner of the joint Account.

• Each owner of a joint Account appoints each of the other

owners of the joint Account as his or her agent and attorney in

fact with power to endorse and deposit items payable to him

or her in the joint Account.

• If an owner of a joint Account makes adverse claims or

demands concerning the joint Account, we may, in our sole

discretion, refuse to recognize such claims or refuse to take

action until the rights of all interested parties have been

resolved to our satisfaction and we are provided a copy of an

agreement signed by all owners of the joint Account.

(i) Formal Trust Account

A formal trust Account is an Account established in the

name of a trust by a trustee appointed under a written trust

instrument, such as a revocable living trust or testamentary

trust. We will require you to execute a Formal Trust Account

Application and a Trustee Certification Form, which we will

provide to you, and we may require you to provide excerpts

from the trust document or other documentation. Certain

types of Trusts may require additional documentation. We will

act in reliance on the information contained in the Trustee

Certification Form, and we undertake no obligation to either

you or any beneficiary for complying with the terms of the

trust document. We have no duty to monitor Accounts for

formal trusts to ensure that the trustee(s) act according to the

terms of the formal trust and/or in the best interest of the trust

or trust beneficiary(ies). Note: There are certain types of Trusts

that we do not support.

(ii) Informal Trusts—Payable on Death (POD)/In Trust

For (ITF) Account

• An informal trust Account (sometimes called a Payable on

Death (“POD”), In Trust For (“ITF”), or Totten Trust Account) is an

Account established by one or more natural persons naming

one or more natural persons as beneficiaries. Proof of death

that all owner(s) are deceased and additional documentation

is required prior to distribution of the funds to beneficiaries.

• To name a beneficiary on an Account, we may require you to

provide certain personal identifying information (for example,

a Social Security Number and date of birth) of your beneficiary.

• If you establish an Account as trustee for a third person

without providing a Trustee Certification Form or presenting

excerpts from the trust as may be requested, we will treat the

Account as an informal trust Account.

• During their lifetime, the owner(s) of an informal trust Account

may deposit to and withdraw or transfer funds from the

Account, close the Account, change beneficiaries at their

discretion, or take any other permitted action with respect to

the Account as if the Account were an individual Account or a

joint Account, as applicable.

• A beneficiary of the informal trust Account is entitled to funds

in the Account only if the beneficiary is living at the time all

Account owners are deceased.

• Upon our receipt of proof of death that all owners are

deceased and additional documentation as required by us, the

1211

funds in the Account will be distributed to each beneficiary (or

to his or her personal representatives or estate as applicable)

who survives the Account owners. If no beneficiary survives

the death of the Account owners, title to the Account will vest

in the estate of the last surviving Account owner.

• If you designate more than one beneficiary, you may

customize your elections for each beneficiary, in whole

number percentages only (e.g., 5%, 10%), and they must total

100%. If you do not customize your elections, each beneficiary

will receive an equal share of the funds from your Account.

In the case where you have 3 or 6 beneficiaries, some

beneficiaries will receive a fractional percentage more in

order for the total shares to equal 100%.

• If one or more of your designated beneficiaries pre-decease

you, the funds that would have been allocated to the

deceased beneficiary will be distributed to the remaining

living beneficiaries on a pro-rata basis.

• An informal trust Account may be owned individually or as

joint tenants with right of survivorship and is subject to section

6(a) or 6(b), as applicable.

(d) Custodial Account—Delaware Uniform Transfer to

Minors Act

A custodial Account is opened and maintained by an adult (the

“Custodian”) for the benefit of a minor, pursuant to the Delaware

Uniform Transfer to Minors Act (“DE UTMA”). Each custodial Account

may designate only one Custodian on behalf of one minor. A

successor custodian may be named for each custodial Account.

Funds deposited into a custodial Account are irrevocably granted

to the minor and are owned by the minor. The Custodian agrees

to hold, manage, and use the custodial Account and all funds

deposited into the custodial Account for the minor’s benefit until

the minor reaches the age of majority pursuant to applicable law,

(presently, age 21). It is the Custodian’s sole responsibility to transfer

the funds to the minor when the DE UTMA terminates. Upon our

receipt of documentation showing that the minor has reached

the age of majority, we may, at our sole discretion, but are not

obligated to (i) restrict access to and/or limit transactions on the

custodial Account if the Custodian fails to transfer the property as

required by law, (ii) accept direction from the minor with respect

to the closure or re-titling of the custodial Account and delivery of

the funds to the minor. Before accepting direction from the minor,

we may, but are not obligated to, require the Custodian to agree

to such action. We have no duty to monitor custodial Accounts or

the status of the Custodian or minor, nor do we have any duty to

monitor or ensure that the Custodian is acting in the minor’s best

interest. The Custodian agrees on behalf of the Custodian and

the minor to indemnify Discover from all liability, including from

any claim by the minor, resulting from us following instructions

we receive from the Custodian and/or the minor regarding the

custodial Account.

(e) Estate Account

An estate Account is an Account opened in the name of a

decedent’s estate by the estate’s personal representative. If the

estate has more than one personal representative, each personal

representative represents to having the authority to act severally/

independently regarding the estate Account, including the power

to order withdrawals from the Account. We have no duty to monitor

an estate Account to ensure that the personal representative is

acting in the estate’s best interest.

(f) Individual Retirement Account

We offer Traditional and Roth IRA CD Accounts and IRA Savings

Accounts. IRAs are also governed by a separate IRA Plan

Agreement and disclosures that we furnish to you at IRA Plan

opening. There are separate Plan Agreements and disclosures

for Roth and Traditional IRA Plans. The required forms must be

completed and returned prior to funding, as set forth in Section

3(iii).

(g) Guardianship Account

A guardianship Account is an Account maintained by a court-

appointed guardian on behalf of a person who is either a minor

or legally incapacitated (the “Ward”). We have no duty to monitor

Accounts for guardianships to ensure that the guardian(s)

act according to the terms of the guardianship. There may be

withdrawal transaction limitations for guardianships requiring

guardians to call in prior to transactions. There may be limitations

on the types of withdrawal transactions permitted.

7 CREDIT AND CONSUMER REPORT USAGE

We may report information about our experiences regarding

your use of your Account(s) to consumer reporting agencies.

Unresolved overdrafts and other defaults on or misuse of your

Account(s) may be reflected in your report.

If you believe the information reported is inaccurate or incomplete,

or that you have been a victim of identity theft, please send us

supporting documentation by mail to Discover Bank, P.O. Box

30416, Salt Lake City, UT 84130 or by fax to 1-224-813-5214.

As part of the Account application process, we may obtain

information about you from third parties, such as credit and

consumer reporting agencies, to verify your identity and other

information about you to help us to determine if we will open the

Account(s) you have requested. These inquiries may delay

Account opening.

You authorize Discover Bank to use your credit and consumer

report data for each of the scenarios described in this Section 7,

and your authorization applies to all of your Accounts.

8 INCOME TAX REPORTING AND WITHHOLDING

(a) Taxpayer Identification Number

We will use the Taxpayer Identification Number (“TIN”) described

below for income tax reporting purposes:

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(i) Individual Account (including informal trust Accounts and

IRAs): The TIN provided by the Accountholder.

(ii) Joint Account (including informal trust Accounts): The TIN of

the Primary Accountholder.

(iii) Custodial Account: The TIN of the minor.

(iv) Trust Account: The Employer Identification Number (“EIN”)

of the trust, or, if none, the TIN of the grantor.

(v) Estate Account: The EIN of the decedent’s estate or the

decedent’s Social Security Number if the estate is not

issued an EIN or the EIN is not provided to us.

(vi) Guardianship Account: The TIN of the Ward.

(b) Backup Withholding

We may be required by the Internal Revenue Service (“IRS”) to

withhold interest or other reportable income on your Account(s)

if you do not furnish us with your correct TIN or do not properly

certify that you are not subject to backup withholding (e.g.,

complete the W-9) or if otherwise instructed by the IRS.

(i) Cashback Debit, Personal Checking, Online Savings,

Statement Savings, Money Market, and Non-IRA CD

Accounts

Your state of residence (as determined by your physical

address of record with us) will determine if you are subject

to state income tax withholding. Some states have no state

income tax. For additional information and details that are

specific to you on state tax withholding requirements, you

should consult a tax advisor or your state’s tax authority.

(ii) IRA Accounts

State tax withholding laws on IRA distributions vary by state.

Therefore, when requesting an IRA distribution, any state

tax withholding will be based on your state of residence, as

determined by your physical address of record with us.

• For Traditional IRAs, your state’s tax laws may require that

we withhold a portion of the gross IRA distribution.

• For Roth IRAs, state tax is typically not withheld unless

requested by you.

Even if you elect in writing not to have federal and/or state

income tax withheld, you are liable for payment of federal

and state income taxes, if applicable, on the taxable portion

of your distribution. You may also be subject to tax penalties

under the estimated tax payment rules if your withholding and

payment of estimated tax, if any, are not adequate. We may be

required to withhold more federal and/or state taxes on your

IRA distribution than you have requested in your withholding

election. Your income tax withholding election will apply to

all distributions from your IRA Plan, including recurring and

one-time distributions, from the time the withholding election

is received and applied until you revoke and/or provide new

withholding instructions for that plan. A change of address

may cause a delay in processing an IRA distribution, if state

withholding requirements are impacted. For more information,

consult your tax advisor.

9 CHECKS

(a) Checks

• We reserve the right not to accept checks or deposits or

withdrawal forms not provided by us.

• Checks may not be drawn against Savings Accounts or CDs.

• We reserve the right to refuse to honor any checks drawn

against your Account on which there is either no signature or a

signature of questionable validity if we suspect the check was not

authorized by you.

• We reserve the right to pay any check before the date you have

written on it (i.e., a postdated check) or if it is more than six (6)

months old (i.e., a stale check).

• Our check payment process is highly automated and we receive

checks in great volume. Although we inspect some checks and

other items from time to time, at our discretion, you agree that

reasonable commercial standards do not require us to do so. If we

return a check because we believe it was not authorized by you,

we are not liable to you even if the check was actually authorized.

We have no duty to prevent a check from being presented more

than once.

• If you use a facsimile or system-generated signature, we may pay a

check or any withdrawal from your Account that bears or appears

to bear a facsimile signature that resembles or purports to be the

signature of a person who is authorized to withdraw funds from the

Account. You are solely responsible for any check bearing such a

signature, and for maintaining the security of each facsimile device

or system you use to affix your signature. For the avoidance of

doubt, no facsimile or system-generated signature shall be deemed

to be an unauthorized signature, regardless of whether the person

has the authority to use such signature to withdraw funds. You are

solely responsible for any losses, incurred in connection with the

use of the facsimile or system-generated signature, and you agree

to reimburse us for all claims, costs, losses, and damages (including

attorney’s fees) that result from our payment of a check or other

withdrawal bearing a facsimile signature that resembles or purports

to be your signature, and any such amounts owed to us is a Debt as

described in Section 20.

• If a check drawn on your Account is presented for payment at our

Branch, by a person who is not a Discover deposit Accountholder

(a “non-Discover customer”), you agree that we may require the

non-Discover customer to provide identification as a condition for

cashing a check drawn on your Account. You also agree that we may

refuse to pay any such check if the non-Discover customer refuses

to furnish such identification. Such refusal shall not be considered

wrongful dishonor of the check by us. You also agree that we may

refuse to cash or otherwise honor any check exceeding $5,000,

which is presented to us at the Branch by any person, even if the

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check is properly payable and that person can verify his/her identity

as the holder of such check. Such refusal shall not be considered

wrongful dishonor of the check by us. In such cases, the holder of

the check is expected to deposit the check with his/her financial

institution and have the check presented to us through regular

banking channels.

(b) Preauthorized Checks

You may allow a third party to create a check drawn against

your Cashback Debit Account, or Money Market Account by

communicating your Account number to that third party. However,

if you choose to permit such a check, you agree: 1) to accept sole

responsibility for ensuring that the amount of the check is both

authorized and accurate; and 2) that we are not liable if we either

pay or refuse to pay any check that you have authorized a third

party to create if that check does not bear your signature.

You may authorize a merchant or other payee to use your

Cashback Debit, Personal Checking, or Money Market Account

check as a source of Account information to initiate an electronic

withdrawal from your Account. The merchant/payee uses the

check information, along with the transaction amount, to initiate

an Automated Clearing House (“ACH”) debit transaction. Please

note that this type of transaction generally results in funds

being withdrawn from your Account faster than a normal check

transaction. This type of transaction from a consumer Account is

governed by the Electronic Fund Transfer Act, and is subject to the

Electronic Fund Transfer disclosures found in Sections 27 and 28

of this Agreement.

10 ADDING MONEY TO YOUR ACCOUNT

(a) General

(i) You may add money by:

• Mailing a check deposit to us (do not mail us cash)

• Mobile check deposit, subject to the Mobile Check Deposit

Service User Agreement Addendum

• ACH transfer

• Internal transfer

• Wire transfer

• Depositing cash, checks, or travelers checks in person at the

Branch

• Using the Add Cash service to add cash to your Cashback

Debit, Personal Checking, or Money Market Account at

participating merchant retail locations (see Section 13 for

additional details about the Add Cash service)

(ii) We will not accept mailed cash deposits.

(iii) For posting times regarding check and cash deposits, see

the chart in Section 10(e).

(iv) We reserve the right to refuse, limit, or return any deposit.

Any non-cash items deposited to your Account (including

items drawn “on us”) will be given provisional credit until

final payment of the item.

(v) Travelers Checks: Travelers checks received by us for deposit

by mail will be returned to you.

(vi) Returned Deposited Items: We will reverse any interest,

accrued or paid, on any returned item. If the reversal

results in your Account being overdrawn, the overdrawn

amount is a Debt as described in Section 20. You also

agree to indemnify and hold us harmless against:

• any additional losses resulting from nonpayment of any

item cashed against or deposited into your Account; and

• all losses due to any preauthorized credit to your

Account that we do not receive.

These losses include, but are not limited to, all related costs,

expenses, and reasonable attorney fees (including the cost of

any attorney employed by us), which, if incurred, are also a Debt.

(vii) Early Pay: At our discretion and dependent on the timing

of our Automated Clearing House (ACH) direct deposit

instructions, we may make funds from ACH direct deposits

available to you before we receive final funds from your

payor. This feature is automatically available to Cashback

Debit, Personal Checking, Statement Savings, Online Savings,

and Money Market customers who receive qualifying ACH

direct deposits (such as salary, pension, or government

benefits) from a business, government entity, or other

organization. There is no fee for the service, and customers

do not need to enroll. Not all ACH direct deposits are eligible

for Early Pay, eligibility may vary between pay periods, and

transaction limits apply.

If your payor reduces or reverses the direct deposit, or we

are otherwise unable to collect the funds, then you are

responsible for returning the funds to us, even if you have

withdrawn the funds. We may withdraw any amount due as

a result of your withdrawal of uncollected funds from your

Account, even if it creates an overdraft. We may change

or terminate the Early Pay feature, in our sole discretion,

without prior notice.

(b) Checks

(i) Domestic Checks

• To help avoid returned checks, please make sure checks

submitted for deposit are payable to you and properly

endorsed by all parties.

• We reserve the right to reject all third party checks.

• You may be eligible to deposit checks using your mobile

phone. Mobile check deposits are subject to the Discover

Bank Mobile Check Deposit Service User Agreement

Addendum, located in the Account Center.

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• If you deposit a check that is returned to us unpaid, we will

deduct the amount of the returned check from your

Account balance.

• If you deposit a check that is returned for insufficient or

uncollected funds, we may re-present the check for payment

a second time without notice to you. At our discretion, the

check may be re-presented electronically by us.

(ii) Foreign Checks

• We reserve the right to refuse items payable in foreign

currency or drawn on a foreign bank located outside the

United States (“Foreign Item”).

• If we accept a Foreign Item, we may accept it for collection

only and you bear all risks associated with the collection

of the item, including any fees charged by other banks

associated with collection and any exchange rate risk.

• We may not credit funds from a Foreign Item to your

Account until the first Business Day after we receive final

payment, which includes receiving the credit and required

documentation, for such funds from the paying bank. The

paying institution determines if and when it will pay a Foreign

Item that we accepted for collection.

• The Funds Availability policy set forth in Section 15 does not

apply to Foreign Items.

If any check deposited to your Account does not have your

endorsement, we may endorse it for you or treat the check as

if you had endorsed it. We are not bound by any conditional or

restrictive endorsement on a check you cash or deposit, or any

endorsement made “without recourse.”

(d) CDs

After a CD is opened and funded, additional deposits are not

allowed. For renewing CDs, deposits are only allowed on the

maturity date and during the Grace Period (as defined in

Section 19).

(e) Cutoff Times

The following chart describes the cutoff times for posting

deposit transactions to your Account:

Check Deposits

sent via Mail

Received by

12 p.m. (ET) on a

Business Day

Received after 12 p.m. (ET) on

a Business Day or any time

on a Non-Business Day

Will Post:

Day of Receipt

Will Post:

Next Business Day

Check/Cash Deposits made in

person to one of our employees

at the Branch

Received before

close on a

Business Day

Will Post:

Day of Receipt

As explained elsewhere in this Agreement, for deposits that

are accompanied by documentation that requires additional

processing (e.g., IRA Documents, Trust Documents), we may

require a reasonable time to process documents before the

deposit will post.

(f) IRA Savings Account Contributions

In order to make a contribution to your existing IRA Savings

Account, you must submit a valid Contribution Form. If you

provided ACH funding instructions or internal transfer funding

instructions, the instructions will be executed once the correctly

and fully executed Contribution Form is received by us. We are

entitled to a reasonable amount of time after receipt of your

Contribution Form to process it and post your contribution.

Any type of contribution received prior to our receipt of the

Contribution Form will be returned. However, if a check is

received prior to the receipt of the Contribution Form, we will

hold it for up to 30 days. If the correctly and fully executed

Contribution Form is not received, the check will be sent back to

the mailing address of record for the IRA Plan. IRA contribution

checks will not be deposited and no interest will be paid until

the Contribution Form is received.

11 WITHDRAWALS

(a) Product Restrictions

(i) CD Withdrawals and IRA Distributions

(a) CD Interest

See Section 3 and Section 5(a).

(b) CD Principal

If your Account is a CD, you have agreed to keep the CD

Principal on deposit until maturity. If we allow you to

withdraw all or part of the amount of your initial deposit

or the amount of your renewed deposit in the case of a

renewed CD (“Issue Amount”) from your CD except at

maturity or during the Grace Period (as defined

in Section 19) and except as provided in Sections 3(iii) and

24(c), we may assess an Early Withdrawal Penalty.

You may withdraw funds from a Non-IRA CD only after seven

(7) days from the date of initial funding.

If you request to withdraw funds sent to us via ACH or wire

transfer within sixty (60) days of the initial funding, the funds

may be returned to the same Account from which the funds

were sent to us to be deposited into the new CD.

(d) Early Withdrawal Penalty

An Early Withdrawal Penalty, as outlined in Section 36, will

be assessed if you withdraw funds from your CD before the

Maturity Date.

(e) IRAs

(i) Required Minimum Distribution: To request a

required minimum distribution, a correctly completed

distribution form (“Distribution Form”) must be

received by us on or before December 15th. We are

entitled to a reasonable amount of time after receipt of

your Distribution Form to process it. If your Distribution

2019

Form designating a required minimum distribution is

received after December 15th, we make no guarantee

that the distribution will occur before December 31st.

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

correctly completed transfer form (“Transfer Form”)

from the receiving institution must be received by

us. Transfer Forms that are not complete, signed and

dated by the receiving Institution will not be honored.

For distributions from IRA CD Accounts during the

Grace Period through a bank to bank transfer, the

correctly completed Transfer Form must be received

by us before the end of your IRA CD Account Grace

Period. 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 from your

IRA, a Distribution Form must be completed and

received by us. Distribution Forms that are not correctly

completed, signed and dated will not be honored. For

rollover distributions from an IRA CD Account during

the Grace Period, the correctly completed Distribution

Form must be received by us before the end of your

IRA CD Account Grace Period. If the Distribution Form

is received by us after the end of the Grace Period,

your rollover distribution may be subject to an Early

Withdrawal Penalty. We are entitled to a reasonable

amount of time after receipt of your Distribution Form

to process it.

(f) Please see Section 36 for more information on Early

Withdrawal Penalties.

(ii) Money Market Account and Savings Account Withdrawals

The number of certain types of withdrawals and transfers

from your Money Market Account or Savings Account is

limited 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 Transfer Transactions

Limited to a combined total of six (6) per

calendar month per Account:

• 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

• Peer-to-Peer (P2P) payments

• Overdraft Protection Service transfers

Unlimited number of

withdrawals and transfers:

• 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 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 Cashback Debit. We retain the right to require at least seven

(7) days prior written notice for any withdrawal.

(iii) Cashback Debit and Personal Checking Accounts and

Withdrawals

You may make unlimited withdrawals and transfers of any

type from your Cashback Debit Account and Personal

Checking Account up to your available balance and in

accordance with the transaction limitations stated in this

Agreement, and other agreements we may have with you,

regardless of the withdrawal method.

(b) Posting Order for Cashback Debit, Personal Checking, Money

Market, Statement Savings, and Online Savings

The following chart describes when items will be posted to

your Account:

Posting Order for Cashback Debit, Personal Checking, Money Market, Statement Savings, and

Online Savings

Beginning of each Business Day • Internal transfers previously scheduled for that

Business Day

Throughout the

Business Day

• ACH Deposits

• ACH withdrawals initiated externally

• ACH withdrawals you initiate in the Account Center

from your Account to an external Account and Discover

online bill payments sent as electronic payments

• ATM withdrawals and related third party fees

• POS Debit Card purchases (including temporary holds

and settlements)

• Cash and official bank check withdrawals

• Cash deposits

• Cash added via the Add Cash service at participating

retail merchant locations (only applicable for Accounts

with a contactless Debit Card)

• Internal transfers scheduled for the same day

• Incoming and outgoing wire transfers and related

service charges

• Checks that you deposited to your Account that have

been returned unpaid

• Peer-to-Peer (P2P) payments

End of each

Business Day

• Check Deposits

• Interest

• Other Debits (Discover online bill payments by checks,

other checks)

• Overdraft Protection Service transfers

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.

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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, and check-based bill payments initiated by you

through the Account Center in order from lowest to highest dollar

amount. If an item presented to us for payment is being returned

unpaid, the return transaction will post to your Account on the

following Business Day.

Unless we otherwise permit, 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,

the transactions will be returned unpaid. In the event we pay an

overdraft in our discretion, that amount is a Debt as described in

Section 20 and you agree to repay us that amount. Should we have

to collect on that Debt, you agree to pay the fees and costs of our

doing so.

(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

takeover 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.

• We reserve the right to limit the amount of funds that may

be withdrawn from your Account in cash, for security, and

other purposes.

12 CASHBACK DEBIT 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% on qualifying debit card purchases

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

amount of Cashback Bonus rewards that may be earned each

month is $30 per Account, including joint Accounts.

Debit Card Cashback Bonus Rewards are calculated based on

each eligible debit card purchase rounded to the nearest dollar.

For example, an eligible purchase of $25.50 would be rounded to

$26.00 and you would earn $0.26 in debit card Cashback Bonus,

while an eligible purchase of $25.49 would be rounded to $25.00

and you would earn $0.25 in debit card Cashback Bonus. An eligible

purchase of $0.49 or less would be rounded down to $0.00 and

would not earn a Cashback Bonus.

(i) Except as provided in Section 12(a)(ii), qualifying debit card

purchases include:

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

(b) Online purchases made with your debit card.

(ii) Debit card transactions that are not eligible for 1% debit card

Cashback Bonus rewards include:

(a) Transactions conducted at an ATM;

(b) The purchase of money orders, currency, coins, or other

cash-equivalents, such as Bitcoins, negotiable items

not yet deposited, U.S. treasury bills, and commercial

paper;

which are 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;

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

(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

(P2P payments using services such as Venmo

PayPal

) unless otherwise agreed to by us; and

(g) Online sports betting or internet gambling

transactions.

Merchants who accept Discover debit cards are assigned merchant

codes based on the kinds of products and services they primarily

sell. Merchant codes are not assigned by Discover. Even though

a merchant or some of the items it sells may seem to fit within a

rewards eligible category, the merchant code may not fall into that

category. Rewards eligibility is determined based on the merchant

code Discover receives in connection with a debit card transaction.

Your debit card Cashback Bonus

rewards will be earned each

calendar month on qualifying purchases and will be posted to your

debit card Cashback Bonus balance on the Business Day following

your statement end date. Your Cashback Debit Account must be

open when debit card Cashback Bonus rewards are posted.

(b) Redeem Rewards:

(i) Customer Redemption

You may redeem your debit card Cashback Bonus on

DiscoverBank.com. You may redeem your debit card Cashback

Bonus in any available amount via:

• A transfer to any of the following Discover Bank Accounts

you own: Cashback Debit, Money Market, or Online Savings

Accounts;

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• Discover Auto Redemption of Cashback Bonus to Online

Savings Service. You may enroll in our optional Auto

Redemption to Online Savings Service for your Cashback Debit

Account by visiting the Account Center. The Auto Redemption

Service allows you to link an eligible Online Savings Account

in order to automatically transfer your debit card Cashback

Bonus on a monthly basis to the eligible Online Savings

Account; and/or

• Other debit card Cashback Bonus rewards redemption options

advertised on DiscoverBank.com from time to time.

Your Cashback Debit Account must be open to redeem

your debit card Cashback Bonus. For full details about

redemption methods and amounts for debit card Cashback

Bonus, visit DiscoverBank.com.

(ii) Discover Redemption

We will redeem the rewards that are in your debit card

Cashback Bonus balance into the Cashback Debit Account

where the rewards were earned if either: (i) your Cashback

Debit Account has been at a $0 balance for at least 180

consecutive days, or (ii) there has been no customer-initiated

activity on or customer contact regarding your Account for at

least 365 consecutive days.

Debit card Cashback Bonus rewards do not expire, but if your

Cashback Debit Account is closed for any reason, unredeemed

debit card Cashback Bonus rewards may be forfeited. If your

debit card or Account number is lost or stolen, or we issue you

a new Account number for any other reason, we will transfer

your debit card Cashback Bonus balance to your new Cashback

Debit Account.

(d) Rewards Adjustments and Termination:

We may make adjustments to your debit card Cashback Bonus

based on your debit card activity. For example, we will decrease

the balance in your debit card Cashback Bonus Account to

correspond with the return of a debit card purchase or the

amount of a reward disbursed by us in error. Any qualifying

debit card purchases in excess of $3,000 each month will

be used to offset the amount of debit card returns, prior to

the corresponding debit card returns reward amount being

deducted from your current month’s Cashback Bonus rewards

earned or your current Cashback Bonus balance.

Adjustments to your debit card Cashback Bonus from debit

card transactions that are not rewards eligible but for which

you received rewards or debit card purchase returns will be

applied to your Cashback Bonus balance in a subsequent

month and will be reflected in your debit card Cashback Bonus

ending balance. In certain circumstances, it is possible to have

a negative debit card Cashback Bonus balance.

Cashback Debit Accounts deemed to have an excessive or

unusual number of debit card return transactions may be: (i)

frozen, (ii) no longer eligible to participate in the debit card

Cashback Bonus rewards program, or (iii) closed in accordance

with Section 24(a) of this Agreement.

(e) Proof of Purchase:

We reserve the right to request receipts of your debit card

purchases within sixty (60) days of the purchase date and you

agree to provide such receipts upon request. Failure to provide

requested receipts will result in those debit card purchases not

being eligible for Cashback Bonus rewards.

13 DEBIT CARDS

(a) Debit Card Transactions

You may use your Debit Card in North America and the Caribbean

where the PULSE

, Discover

, Diners Club International

, MoneyPass

or Allpoint

symbol is displayed.

Subject to limitations set forth in Section 11 (applicable to Money

Market Accounts only) and Section 13(d) and to limitations set by

the ATM owner or merchant, you may use your Debit Card in the

following ways:

(i) At an ATM, withdraw cash from your Cashback Debit

Account, Personal Checking Account, or Money Market

Account.

(ii) Pay for purchases in person, online, or by phone.

(iii) Obtain cash-over from participating merchants.

(iv) Add cash to your Cashback Debit Account, Personal Checking

Account, or Money Market Account with your contactless Debit

Card at participating retail merchant locations using the Add Cash

service. There is no fee for this service. Transaction limits may

apply.

Note: At our Branch, you may use your Debit Card at the teller line to

obtain your Account number to help facilitate transactions.

(b) Foreign Transactions

If you make a purchase or withdraw cash using your Debit Card in a

foreign currency, we will convert it to U.S. dollars using conversion

rates sourced from one of the following methods: a government-

mandated rate, a government-published rate, or an interbank or

wholesale exchange rate, depending on the country and currency

in which the transaction is made. We use the rate in effect on the

conversion date for the transaction. This rate may be different than

the rate in effect on the transaction date. “Interbank or wholesale

exchange rate” means the foreign exchange rate that banks

charge each other when buying and selling currencies.

We will not charge a fee for using an out-of-network ATM. However,

when you initiate a transaction with your Debit Card at an ATM that

is outside of our No Fee network, you may be charged a fee by the

ATM operator or any network used for your transaction, including,

but not limited to, balance inquiries.

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(d) Debit Card Limits

• For the first 30 days from when you open your first deposit Account

with us, the daily combined point-of-sale (“POS”) purchase limit per

active Debit Card is the lesser of $2,500 or your available balance.

• After the first 30 days from when you open your first deposit

Account with us, the daily combined POS purchase limit per active

Debit Card is the lesser of $5,000 or your available balance.

• The daily ATM withdrawal limit for each Account is the lesser of

$2,000 or your available balance. When you use an ATM not owned by

us, you may be subject to other daily limits set by the ATM operator.

• These Debit Card transaction limits are in addition to the limits set

forth in Section 11 of this Agreement. For security reasons, there may be

limits on the number of ATM withdrawals using your Debit Card.

• In addition, we reserve the right to decline any Debit Card

transaction if we suspect fraud, Account takeover, possible illegal

activity, or any other unusual activity affecting your Account.

• If you utilize the Add Cash Service to add cash to your Cashback

Debit Account or Money Market Account, each addition of cash

must be at least $20. The maximum amount of cash that can be

added per transaction through the service at participating retail

locations is $1,000 in all states except Arizona and New Mexico.

In Arizona and New Mexico, the per transaction limit is $999.99.

Within a 24-hour window, customers can add up to $1,000 in all

states except Arizona and New Mexico. In Arizona and New Mexico,

the limit per 24-hour window is $999.99. Additional limits include

7 transactions or $7,000 in cash added per rolling 7 days and 20

transactions or $20,000 in cash added per calendar month.

(e) Personal Identification Number (PIN)

You may activate your Debit Card and create or change your PIN

via the Discover App, Account Center online, or by calling our

automated system. You should protect your PIN as you would your

Debit Card.

(f) Debit Card Freeze

You may request that Discover freeze your Debit Card, which

means that new purchases (in-store, online, mobile, or phone) and

ATM transactions will not be authorized, allowed, or processed with

the Debit Card you have frozen. If more than one Debit Card has

been issued to access your Account, such as a joint Accountholder

Debit Card, only the Debit Card you have identified will be frozen.

All other Debit Cards issued to access your Account will continue

to be available for transactions. Freezing your Debit Card will not

stop bill payments, transactions that merchants have marked

as recurring, returns, deposits, dispute adjustments, internal or

external transfers, reward redemptions, or checks. You may freeze

your Debit Card via the Discover App, online by visiting the Account

Center, calling customer service, or by visiting the Branch.

(g) Debit Card for Discover Cashback Debit Account

By opening a Discover Cashback Debit Account, you are also

requesting a Debit Card.

14 FUND TRANSFERS

(a) Internal Transfers Between Discover Accounts

Accountholders can transfer funds between their deposit Accounts,

or transfer funds from such Accounts to fund a new Account. We may

require a written request for an internal transfer to close one Account

and open another with new Accountholders or if at any time the

validity of a transaction is in question. Internal transfers scheduled for

the same day are processed immediately. For transfers to interest-

bearing Accounts, interest will begin to accrue the next Business

Day if the internal transfer is completed on or after 10 p.m. Eastern

Time. Internal transfers scheduled for the next Business Day or later

are processed at the beginning of the scheduled transfer date. For

transfers to or from an IRA Savings Account that will be a contribution

or distribution from the IRA Plan, we require receipt of a correctly

completed and signed Contribution or Distribution Form.

(b) Wire Transfers

(i) Incoming Wire Transfers

Please contact us at 1-800-347-7000 (1-888-204-8990 for

AAA customers or 1-800-529-6987 for AAII customers) for

wire transfer instructions as certain incoming wire transfers

are processed through an intermediary bank. Wire transfers

received before 4 p.m. Eastern Time are posted to your

Account on the Business Day we receive them. Wire transfers

received after 4 p.m. Eastern Time are posted to your Account

on the next Business Day, with an effective date of the Business

Day the funds were received. In some circumstances, a wire

transfer may require additional processing time and will be

posted to your Account upon completion of processing,

with an effective date (regarding when interest starts) of the

Business Day the funds were received. A wire transfer that

does not comply with applicable law will not be processed

and will be returned. Funds from incoming wire transfers are

made available as set forth in Section 15(b)(i). For international

wire transfers received in a foreign currency, the funds will

be converted to U.S. dollars at a currency exchange rate

determined by intermediary banks and that exchange rate will

determine the amount received by us.

(ii) Outgoing Wire Transfers

Outgoing wire transfers from your Account to another financial

institution may be made upon request by completing the

Discover Wire Transfer Form or by submitting the request

online. Outgoing international wire transfer requests from

your Account to another financial institution may be made

in the Discover App. Please note that Discover Bank only

sends international wires funded in U.S. dollars. All requests

must include the receiving Accountholder and receiving

bank information, as required by us. You may be assessed an

Outgoing Wire Transfer Service Charge for each outgoing wire

transfer you initiate (not applicable to IRAs). For wire transfers

from an IRA, we require receipt of a correctly completed,

signed Distribution Form.

2827

(a) We reserve the right to verify or authenticate any request

for a wire transfer or any information you provided to

us on the Discover Wire Transfer Form and to refuse

to honor any request if we, in good faith, are unable to

verify that the individual requesting such transfer has the

authority to do so or we detect any other unusual activity

of the Account or person. There may be more than one

level of verification required.

(b) Requests received and fully verified at or before 3 p.m.

Eastern Time on a Business Day will be processed as of

that Business Day. Wire transfer requests received and

fully verified after 3 p.m. Eastern Time on a Business Day,

or at any time on a day that is not a Business Day, will be

processed no later than the next Business Day.

Non-Discover Accounts

• You can transfer funds via Automated Clearing House (“ACH”)

between any of your eligible Discover Bank Accounts and eligible

Accounts you own at other U.S. financial institutions, subject to the

restrictions identified in Section 11.

• In order to initiate an ACH transfer, you must be an owner of, or

signer on, the bank Account from which funds are being debited

or to which the funds are being credited. You are required to

provide the routing number, Account number, and bank name for

the Account from which the funds will be debited or to which the

funds are being credited.

• ACH requests made by phone or in the Account Center before

5 p.m. Eastern Time on a Business Day will be initiated by us on the

same day.

• ACH requests made by phone or in the Account Center after 5 p.m.

Eastern Time on a Business Day or at any time on a non-Business

Day will be initiated by us on the next Business Day.

• Funds deposited via ACH will be available as set forth in Section 15

(Funds Availability).

• ACH transfers initiated by phone are permitted for initial Account

funding only. Some product types might not be eligible.

• For security reasons, there may be limits on the dollar amount and

the number of external transfers from your Account. We reserve

the right to terminate, change, discontinue, or add funds transfer

functionality at any time, within our sole discretion.

• For transfers to or from an IRA that will be a contribution to or

distribution from the IRA Plan, we require receipt of a correctly

completed, signed Contribution or Distribution Form.

ACH transfers initiated via the Account Center are subject to the

Account Center (Banking) Agreement.

(d) Zelle

Person-to-Person Transfers

You may be eligible to enroll in our optional Zelle

P2P Transfer

Service. The Zelle

P2P Transfer Service allows you to send, receive,

and request transfers from third parties who are also enrolled in the

service at Discover or another participating financial institution. To

enroll, visit the Account Center.

15 FUNDS AVAILABILITY HOLDS

Our policy is to make funds from your cash, check, and other deposits

to your Account available to you as set forth in this Section 15. Once

funds are available, the funds can be used to cover debit transactions

on the Account (e.g., cash withdrawals at the Branch or ATM, ACH or

wire transfers, internal transfers, Zelle

transfers, and checks written).

(a) Check Deposits

Section 15(a)(i) sets forth our general funds availability schedule for

checks for Existing and New Customers. Please note Section 15(a)

(ii), which sets forth our availability schedule for check deposits

under other special circumstances.

Funds availability is determined by a variety of factors, including,

but not limited to, check type, whether a customer is an Existing

Customer or New Customer, and whether the check is deposited in

person at the Branch, by mail, or using Mobile Check Deposit.

Checks Deposited Using Mobile Check Deposit: Please note that

checks transmitted using Mobile Check Deposit are not subject to

the Funds Availability time frames in the Table below. Please refer

to the Table in the Discover Bank

Mobile Check Deposit Service

User Agreement Addendum for general funds availability for

checks deposited through Mobile Check Deposit. The remainder

of the provisions in Section 15(a) also applies to checks deposited

through Mobile Check Deposit (unless otherwise stated).

(i) General Availability

Funds from checks, drafts, and money orders drawn on any

financial institution located in the United States (including a

financial institution located in a U.S. territory or a U.S. branch

or agency of a foreign bank) will be available for withdrawal

as follows:

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The Funds Availability tables are indicative of general funds

availability. Discover reserves the right to expedite funds availability. In

some cases, we make funds from your deposited checks available to

you sooner than we are able to collect the checks. Please remember

that even after we have made funds available to you, and you have

withdrawn the funds, you are still responsible for checks you deposit

that are returned to us as unpaid and for any other problems involving

your deposit.

(ii) Delayed Availability

The availability of funds from checks deposited may be

delayed for a longer period of time under circumstances

including, but not limited to, the following:

• We have reason to believe a check you deposit will not be

paid.

• If you deposit checks totaling more than $5,550 on any one

Business Day (“Large Deposit”).

• A check you redeposited was previously returned unpaid.

• You have overdrawn your Discover Account repeatedly in

the last six (6) months.

• You have multiple deposits returned in your Account over

the immediately preceding 90-day period.

• We have been notified that the deposited check has been

lost or damaged in collection.

• We suspect fraudulent or other unusual activity on your

Account.

• The deposited check is post-dated, expired, or more than

six (6) months old.

• The routing number on the deposited check is not a current

routing number.

• There are erasures or other apparent alterations on the

deposited check.

• An emergency, such as failure of computer or

communication equipment, has occurred.

We will notify you if we delay your ability to withdraw funds

for any of the reasons set forth in this Section 15(a)(ii), and

we will tell you when the funds will be available. The funds

will generally be available no later than the seventh (7th)

Business Day after the date of your deposit.

(b) Electronic Deposits

(i) Funds from ACH credit transfers and wire transfers

initiated at an external bank to your Discover Bank

Account (i.e., funds being sent to Discover) will be

available for withdrawal no later than the Business Day we

receive the funds.

Type of Deposit

How

Deposit is

Made*

Business

Day of

Deposit

Business

Day 1 after

Deposit Date

Business

Day 2 after

Deposit Date

Business

Day 5 after

Deposit Date

Checks drawn on

Discover Bank

Made in

person

Full amount of

the deposit

Not made in

person

Full amount of

the deposit

U.S. Treasury

Checks

Made in

person

Full amount of

the deposit

Not made in

person

Up to $15,000

of the deposit

Remainder

Special Check Types**

Made in

person

Full amount of

the deposit

Not made in

person

First $250 of

the deposit

Next $5,300 of

deposit

Remainder

Other Checks

Made in

person

First $250 of

the deposit

Remainder

Not made in

person

First $250 of

the deposit

Next $5,300 of

deposit

Remainder

Type of Deposit

How

Deposit is Made*

Business

Day 1 after

Deposit Date

Business

Day 2 after

Deposit Date

Business

Day 5 after

Deposit Date

Checks drawn on

Discover Bank

Made in

person

Full amount of the

deposit

Not made in

person

Full amount of the

deposit

U.S. Treasury

Checks

Made in

person

Full amount of the

deposit

Not made in

person

Up to $5,550

of the deposit

Remainder

Special Check Types**

Made in

person

Full amount of the

deposit

Not made in

person

First $250 of

the deposit

Next $5,300 of

deposit

Remainder

Other Checks

Made in

person

Full amount of the

deposit

Not made in

person

Full amount of the

deposit

*A check deposit “made in person” means the deposit was made to one of our employees at the Branch.

**Special Check Types Include: U.S. postal money orders and Federal Reserve Bank, cashier’s, official,

certified, teller, state and local government, and travelers checks.

New Customer Funds Availability Chart

Existing Customer Funds Availability Chart

(ii) Funds from ACH transfers initiated at Discover Bank to be

withdrawn from your external bank Account, and sent and

deposited to your Discover Bank Account are generally

available within four (4) Business Days after the date your

request is initiated.

The availability of funds from ACH transfers initiated at

Discover Bank from your external bank Account and sent

and deposited to your Account at Discover Bank may be

delayed for a longer period of time (up to ten (10) Business

Days) to ensure that the funds have cleared the external

bank from which the funds were obtained and under

circumstances including, but not limited to,

the following:

• You are a New Customer.

• We suspect fraudulent, illegal, or other unusual activity on

your Account.

• You have overdrawn your Account repeatedly in the last six

(6) months.

• You have multiple deposits returned in your Account over

the immediately preceding 90-day period.

(iii) Funds from Zelle

transfers to your Account. Please refer

to Section 8 of Zelle

Person to Person Transfer Service

User Agreement Addendum for availability of funds from

Zelle

transfers to your Account.

Do not deposit cash through the mail. For cash deposits that are

not made in person to one of our employees at the Branch, your

funds will be available no later than the first Business Day after the

date of your deposit. If you make a cash deposit in person to one of

our employees at our Branch, your funds will be available no later

than the day we receive the deposit.

(d) Electronic and Cash Deposits by New Customers:

The availability of funds from cash and electronic deposits does not

change for New Customers, except as provided in Section 15(b)(ii)

above, and is set forth in Sections 15(b) and 15(c).

(e) Determining When Your Deposit is Received

(i) Checks and Cash

The following chart describes when items are determined to have

been received by Discover:

Times for when Check & Cash

Deposits will be Considered Received

Mailed to our deposit

processing center

(checks only)

By 12 p.m. Eastern Time

on a Business Day

After 12 p.m. Eastern Time on a Business

Day or any time on a Non-Business Day

Day of Receipt Next Business Day

In person made to one

of our employees at

the Branch

Business Day of Receipt

Via Mail to the Branch

(checks only)

Business Day of Receipt

Note: Cash added through the Add Cash service at participating

retail merchant locations is considered received day of receipt.

(ii) Wire Transfers

Wire transfers received before 4 p.m. Eastern Time on a

Business Day are considered received on the Business Day

we receive them. Wire transfers received after 4 p.m. Eastern

Time on a Business Day are considered received on the next

Business Day. See Section 14(b)(i) for additional information.

16 STOP PAYMENT ON CHECKS

You may stop payment on a check drawn on your Cashback Debit

Account, Personal Checking Account, or Money Market Account in

person at our Branch, by calling us, or by sending a written request

to us. A stop payment order may apply to either a continuous range

of checks or a single check. A stop payment order will be effective if

we receive the stop payment order at such time and in such manner

that we have a reasonable opportunity to act upon the request. The

stop payment order is effective for six (6) months from the date you

ordered the stop payment. To make a stop payment order, you must

provide us with your Discover Account number, the check amount

and/or the number and, if available, the payee name. Our acceptance

of a stop payment order will not constitute a representation that

the check has not already been paid or that we have a reasonable

opportunity to act upon the order. Further, you may not stop payment

on a check after we have paid the check.

If we fail to stop payment on a check for which a timely request is

made, our liability is limited to the face amount of the check. If you

would like to renew the stop payment after the effective period of

six (6) months, you must call us, come into the Branch, or send us a

written request.

See Section 27(a) for information on stop payment orders for

preauthorized transfers.

17 ACCOUNT TRANSFER OR ASSIGNMENT

Except as set forth in Section 20, you may not transfer, assign, or

grant a security interest in your Account or any portion of the funds

in your Account without our prior written consent. No such transfer,

assignment, or security interest grant will be binding on us unless

and until we consent in writing to it. We reserve the right to refuse to

allow you to change, add, or delete your name or the names of other

Accountholders.

18 STATEMENTS AND ERROR RESOLUTION

(a) Statement Frequency

For an account to or from which EFTs can be made, we will send

a periodic statement for each monthly cycle in which an EFT has

occurred. If no EFT has occurred, we will send a periodic statement

at least quarterly (except IRA CDs). IRA (Plan) statements will be

available annually.

For Cashback Debit, Personal Checking, and Money Market

Accounts, Checks will not be returned to you in your statement.

However, you may view check images in the Account Center. Check

copies are available upon request.

(b) Statement Error Resolution

You must review and call us or write us promptly after we mail or

otherwise make a statement available if:

• An item (other than an EFT from a Cashback Debit, Personal

Checking, Online Savings, Statement Savings, Money Market, or

Non-IRA CD Account) that you did not authorize or that contains

an unauthorized alteration is listed on the statement;

• Your statement contains any errors (other than EFT-related

errors from a Cashback Debit, Personal Checking, Online Savings,

Statement Savings, Money Market, or Non-IRA CD Account); or

• You did not receive your scheduled statement.

If you do not notify us of unauthorized or altered items, or other

errors (other than EFTs from a Cashback Debit, Personal Checking,

Statement Savings, Online Savings, Money Market, or Non-IRA

CD Account), or of a missing statement within 60 days after a

statement is mailed or otherwise made available, then you waive all

claims you may have against us regarding these items.

If you do not call or write us regarding an item that you did not

authorize or that contains an unauthorized alteration within 30

days after a statement is mailed or otherwise made available, we

are not liable to you for subsequent unauthorized transactions on

your Account that we could have prevented if you had timely told

us of the unauthorized alteration.

You must call us or write us within six (6) months after a statement

is mailed or made available to you to report an unauthorized or

missing endorsement on an item you issued.

You must provide us with all information we need to investigate

the alleged error or item and file any police reports, and provide

supporting affidavits and testimony we reasonably request. If

you do not comply with the requirements, we are not required to

reimburse you for any claimed loss, and you cannot bring any legal

claim against us in any way related to the item or errors.

You are responsible for maintaining a current address with us. Your

statements will be considered available as of the date that the

statement is mailed to you or otherwise made available to you. Your

Checking, Savings, Money Market, Non-IRA CD Account, IRA Savings,

and IRA CD statements are also available through Account Center.

(d) EFT Error Resolution

Section 18(b) on statement error resolution does not apply to errors

regarding EFTs from a Cashback Debit, Personal Checking, Online

Savings, Statement Savings, Money Market, or Non-IRA CD Account.

For resolution of errors regarding EFTs from a Cashback Debit,

Personal Checking, Online Savings, Statement Savings, Money

Market, or Non-IRA CD Account, see Section 28.

19 CD RENEWAL OPTIONS

• We will send you a notification 30 days before your CD matures.

• When your CD matures, you may make a deposit or withdrawal (in

whole or in part), or change the length of the term of the renewed

CD once during the Grace Period. The “Grace Period” consists of the

nine (9) days immediately following the maturity date.

• Any term change, or deposit or withdrawal (including interest

disbursement), during the Grace Period, will end the Grace Period.

• Your CD will automatically renew if no action is taken during the

Grace Period.

• If you elect not to renew your CD, you will not be paid interest after

the maturity date. Interest will be paid on partial withdrawals during

the Grace Period as specified in Section 5(a).

• For IRA CD Accounts:

– If you are withdrawing funds, we must receive a correctly

completed IRA Distribution or Transfer Form before the end of

your Grace Period in order for us to process any distribution(s)

from your IRA CD Account before the end of the Grace Period.

– If you would like to make a contribution to your IRA CD Account at

maturity or during your Grace Period, we must receive a correctly

completed Contribution Form and the additional funds prior to

the end of the Grace Period. If we do not receive the Contribution

Form and funds prior to the end of the Grace Period, we will either

return the funds to you in the same way we received the funds

or you may apply for and establish a new IRA CD Account or IRA

Savings Account.

20 RIGHT OF SETOFF

(a) Set-Off

If you owe us or our affiliate(s) money under any agreement,

now or in the future (“Debt”), you grant us (and our affiliate(s),

as applicable) a security interest in all of your Accounts (except

for IRAs) in which you have an interest, to secure the Debt, plus

reasonable attorney fees and costs incurred by us (and our

affiliate(s), as applicable) in connection with collecting on the Debt.

We also have a right to set off the balance in any of your Accounts

(except for IRAs) against any Debt that is due and payable. If the

Debt is due and payable, we may exercise our right of set-off

and our rights under the security interest to satisfy or reduce the

Debt, without giving you notice, before or after the set-off (unless

required by applicable law) by withdrawing funds from such

Account(s) and applying them to the Debt, and to any associated

fees, charges, and costs. We may exercise these rights even if the

withdrawal leaves insufficient funds in your Account(s) to pay

outstanding checks or other items, or results in an Early Withdrawal

Penalty being assessed against your Account(s). We may withdraw

funds from a joint Account to pay a Debt of any joint Accountholder,

regardless of the contributions of each Accountholder. We will not

exercise these rights to pay a credit card Debt, or where otherwise

prohibited by law. Some government payments may be protected

from attachment, levy, or other legal process under federal or state

law. If such protections may apply, to the extent that you may do so

by contract, you waive these protections and agree that we may

take or set-off funds, including federal and state benefit payments,

from your Accounts to pay Debts.

(b) Overdrafts

Any overdraft in your Account, regardless of the reason for the

overdraft, is immediately due and payable by you without notice of

demand from us.

21 OVERDRAFT PROTECTION SERVICE

We offer an optional overdraft protection transfer service. You may

only enroll in the Overdraft Protection Service for your Checking

Account, Savings Account, or Money Market Account through the

Account Center. The Overdraft Protection Service allows you to link an

eligible Account to another eligible Account to help avoid overdrawing

your Account. Until you have enrolled your eligible Accounts in the

Overdraft Protection Service you will not have the benefit of the

Overdraft Protection.

22 POWER OF ATTORNEY

If you wish to designate another person (your “Attorney-in-Fact”), other

than another owner of your Account, to transact on your Account on

your behalf, you must deliver to us a Power of Attorney (“POA”) form

that complies with applicable law. Subject to applicable law, we may

decline to honor a POA for any reason, at any time, and we may refuse to

recognize a successor Attorney-in-Fact, even if we recognized the first

Attorney-in-Fact named in your POA. If your POA names more than one

Attorney-in-Fact, you agree that we may rely on the instructions of one

Attorney-in-Fact as representing joint action by every Attorney-in-Fact

you named in the POA. You agree we do not have the responsibility to

monitor for, or enforce, any joint Attorney-in-Fact requirement. We may

require the Attorney-in-Fact to execute an affidavit form, which we

will provide. The Attorney-in-Fact must notify us immediately upon

learning of the principal’s death. We may rely on your POA until we

have received notice (i) from you that it has been revoked, or (ii) that

it has otherwise been terminated. An Attorney-in-Fact is not an owner

of the Account and does not have an FDIC-insurable interest in the

Account.

23 PRIVACY AND DISCLOSURE OF ACCOUNT INFORMATION

We will disclose information to third parties about your Account or the

transfers you make: (i) where it is necessary for completing transfers,

or (ii) in order to verify the existence and condition of your Account

for a third party, such as a credit bureau or other consumer reporting

agency or merchant, or (iii) in order to comply with government

agency or court orders, or (iv) if you give us written permission, or (v)

as explained in our Privacy Statement.

You authorize your wireless carrier to use or disclose information

about your Account and your wireless device, if available, to Discover

Bank or its service providers for the duration of your business

relationship, solely to help them identify you or your wireless device

and to prevent fraud. See our Privacy Policy at https://www.discover.

com/privacy-statement/ for how to see how we treat your data.

24 ACCOUNT CLOSURE

(a) Closure by Us

We reserve the right to close your Account at any time for any

reason, including if the balance in your Account is zero. If we

close your Account, funds on deposit will be disbursed to the

Accountholder(s).

You will have 45 days, starting with the Account open date, to fund

your Cashback Debit Account, Personal Checking Account, Online

Savings Account, Statement Savings Account, or Money Market

Account. If we do not receive funding within 45 days, starting with

the Account open date, your Account will be closed. For Non-IRA

CD Accounts, you will have 45 days from the application date to

fund the Account, otherwise, your Non-IRA CD Account application

will be deemed abandoned.

(b) Closure by You

Subject to Section 11(a), you can close your Account at any time by

notifying us in person, in writing, or calling us. For phone requests, we

may require you to submit an Account closure request in writing.

(i) Cashback Debit, Personal Checking, Money Market, Statement

Savings, and Online Savings Accounts: If any transactions are

received after your Account is closed, the transactions will

generally be rejected, and debit transactions will be returned

unpaid. For interest-bearing Accounts, no interest will be paid

on deposits received after your Account has been closed.

(ii) Non-IRA CD Accounts: Closure of your Non-IRA CD Account is

subject to the restrictions stated in Section 11(a)(i) and Section

36 of this Agreement. If your Non-IRA CD Account is closed

prior to maturity, we will assess an Early Withdrawal Penalty.

However, we do not assess an Early Withdrawal Penalty for

withdrawals following the death of an owner or when an

owner is determined to be legally incompetent by a court or

other appropriate administrative body, in each case subject

to the provision of supporting documentation satisfactory

to us.

3837

25 TRANSACTION CORRECTIONS, REVERSALS, AND DELAYS

(a) Transaction Corrections and Merchant Chargebacks

We may review transactions after they are posted to your Account.

If we determine that we credited or debited your Account in

error, we may reverse the transaction at any time without notice

to you and even if a reversal overdraws your Account. You will

be responsible for settling any remaining amount owed to the

merchant directly with the merchant.

At our discretion and in accordance with applicable network rules,

we may seek a merchant chargeback on transactions after they are

posted to your Account. Regarding such debit card transactions

that we charge back to a merchant, you may be responsible for

settling any remaining amount owed to the merchant directly with

the merchant.

(b) Return of Benefit Payments

If we are required to return any federal benefits or other payments

that were deposited to your Account after you became ineligible

to receive them, we may debit your Account balance, or debit any

other Account you own, and return them to the sender. If any of the

funds were withdrawn, you agree to repay them upon our request.

If we are unable to automatically post a transaction to your Account

for any reason, including, but not limited to, your failure to provide

a deposit slip, or there is a freeze on your Account, or the deposit

is to a CD that has not yet matured, we are entitled to a reasonable

amount of time to review the transaction and post it to your

Account, or in our discretion, return it.

26 AMENDMENTS, ACCOUNT CHANGES, AND NOTICES

We may change the terms of this Agreement at any time. Unless

the law requires us to send you a specific notice, we will decide

what kind of notice we will give you, the timing of the notice, and

the method of providing the notice. If you are unwilling to agree

to such amendments, you have the right to close your Account

prior to the changes taking effect, subject to any Early Withdrawal

Penalties. Your continued use of the Account after the effective date

of the change constitutes your agreement to the Deposit Account

Agreement as amended. Notices will be sent to the most recent

address shown on our records for your Account. Any notice to one

Accountholder constitutes notice to all Accountholders. It is your

responsibility to notify us of any changes in your address or name, or

if an Accountholder dies. If we are notified by the U.S. Postal Service

that your address has changed, we may change your address in our

records and send notice to you of the change.

27 ELECTRONIC FUND TRANSFER EFT

“EFT” or “transfer,” as used in Sections 27 and 28, means any electronic

fund transfer transaction that is initiated through an electronic

terminal, telephone, facsimile machine, computer, or magnetic tape

for the purpose of ordering, instructing, or authorizing us to debit

(iii)(a) IRA CD Accounts: Closure of your IRA CD Account is

subject to the restrictions stated in Section 11(a)(i) and

Section 36 of this Agreement and the provisions set forth

in Section 3(iii) governing revocation of an IRA Plan. If

your IRA CD Account is closed prior to maturity, we will

assess an Early Withdrawal Penalty. However, we do

not assess an Early Withdrawal Penalty for withdrawals

following the death of an owner or when an owner is

determined to be legally incompetent by a court or other

appropriate administrative body, or for withdrawals that

constitute required minimum distributions from your

IRA CD Account, in each case, subject to the provision of

supporting documentation satisfactory to us. Upon the

death of an IRA CD Account Accountholder, if a surviving

spouse is the sole beneficiary, then the surviving spouse

must close the IRA CD Account and either (a) open a

new IRA CD Account in the surviving spouse’s name

with the IRA CD Account term ending on the same date

and with the same interest rate and APY as the original

IRA CD Account, or (b) receive the funds as a transfer,

distribution, or a rollover.

(b) IRA Savings Accounts: Closure of your IRA Savings

Account is subject to the restrictions stated in Section

11(a)(i) and the provisions set forth in Section 3(iii)

governing revocation of an IRA Plan. Upon the death

of an IRA Savings Account Accountholder, if a surviving

spouse is the sole beneficiary, then the surviving spouse

must close the IRA Savings Account and either (a) open a

new IRA Savings Account in the surviving spouse’s name,

or (b) receive the funds as a transfer, distribution, or a

rollover.

(iv) IRAs generally: Closure of an IRA may result in tax

consequences, depending on the circumstances, including

tax penalties and assessment of income tax on funds

distributed from the closed Account. We may be required

to withhold certain amounts for federal income tax. We

might also be required to withhold certain amounts of state

withholding tax. See your applicable IRA Plan Agreement

and disclosures for more information.

(v) General Account Closure: If an Account is closed before

interest is credited, you will receive the accrued interest.

Closed Accounts remain subject to the other provisions of

this Agreement. We may advise consumer reporting

agencies and other third parties of an Account that is closed

for misuse, as permitted by law.

4039

• Preauthorized Credits: If you have arranged to have direct

deposits made to your Cashback Debit Account, Personal

Checking Account, Statement Savings Account, Online Savings

Account, or Money Market Account at least once every 60 days

from the same person or company, you can call us at 1-800-347-

7000 (1-888-204-8990 for AAA customers or 1-800-529-6987 for

AAII customers) or visit DiscoverBank.com to verify whether or not

the deposit has been made. You will not receive a separate receipt

for these transactions.

• ACH Transactions Initiated Through the Account Center or By

Phone: You will receive a written notice confirming the verbal

authorization to process an ACH by phone. You will be presented

with a confirmation screen, confirming the authorization to

process an ACH through the Account Center.

• Statements: All transfers will be included on your statements.

(e) Your Liability for Unauthorized Transfers

Tell us AT ONCE if you believe your Debit Card or PIN has been lost

or stolen, or if you believe that an electronic fund transfer has been

made without your permission using information from your check, by

calling us at 1-800-347-7000 (1-888-204-8990 for AAA customers or

1-800-529-6987 for AAII customers) or by writing us at Discover Bank,

P.O. Box 30411, Salt Lake City, UT 84130-0411. Telephoning is the best way

of keeping your possible losses down. You could lose all the money in

your Account. If you tell us within two (2) Business Days after you learn

of the loss or theft of your Debit Card or PIN, you can lose no more than

$50 if someone used your Debit Card or PIN without your permission.

If you do NOT tell us within two (2) Business Days after you learn of the

loss or theft of your Debit Card or PIN, and we can prove we could have

stopped someone from using your Debit Card or PIN without your

permission if you had told us, you could lose as much as $500 (if you

reside in California or New York, this amount is as much as $50). Also, if

your statement shows transfers that you did not make, including those

made by card, code, or other means, tell us AT ONCE. If you do not tell

us within 60 days after the statement was made available to you, you

may not get back any money you lost after the 60 days if we can prove

that we could have stopped someone from taking the money if you

had told us in time. If a good reason (such as a long trip or a hospital

stay) kept you from telling us, we will extend the time periods.

(f) Our Liability for Failure to Make Electronic Transfers

If we do not complete a transfer to or from your Account on time

or in the correct amount according to your instructions and this

Agreement, we will be liable for losses or damages. However, there

are some exceptions. We will not be liable, for instance:

• If, through no fault of ours, there is insufficient money in your

Account to make the transfer.

• If the terminal or system was not working properly and you knew

about the breakdown when you started the transfer.

•

If circumstances beyond our control (such as fire or flood) prevent

the transaction, despite reasonable precautions that we have taken.

or credit your Cashback Debit, Personal Checking, Online Savings,

Statement Savings, Money Market, and Non-IRA CD Account. The

following details your rights in regards to EFTs. You may call us if you

have any questions about your rights. Refer to Section 28 for written

notification requirements.

(a) Stop Payment of Preauthorized Transfers

If you have arranged to make preauthorized recurring electronic

payments out of your Account, you can stop any of these

payments. Here’s how: Call us at 1-800-347-7000 (1-888-204-8990

for AAA customers or 1-800-529-6987 for AAII customers), come

into the Branch, or write us at Discover Bank, P.O. Box 30416, Salt

Lake City, UT 84130. You may also use this contact information

to revoke your stop payment order. For payments you have

authorized us or a third party to make from your Account via EFT,

we must receive your order in such time and in such manner as to

allow us a reasonable opportunity to act upon it, which will be no

less than three (3) Business Days. If you call, we may also require

you to put your request in writing and get it to us within 14 days

after you call. You must provide us with your Discover Account

number, the name of the payee, the date, and the payment

amount. The stop payment order is effective indefinitely. Once

your stop payment order is effective, the stop payment order will

continue in effect until the ACH transfer is stopped (for a one-time

stop payment order) or for recurring ACH the stop payment order

is effective until you revoke the stop payment order with us. For

payments initiated by a third party, you should notify the third party

that you have withdrawn your authorization for the payment.

(b) Notice of Varying Amounts

If these regular payments vary in amount, the person you are going

to pay will tell you ten (10) days before each payment when it will be

made and how much it will be. You may choose instead to get this

notice only when the payment would differ by more than a certain

amount from the previous payment, or when the amount would fall

outside certain limits that you set.

If you order us to stop one of these payments within the time

frames set forth in Section 27(a), and we do not do so, we will be

liable for your losses or damages.

(d) Documentation of Transfers

Your EFTs will be documented as follows:

• Terminal Transfers (i.e., ATMs): You can get a receipt at the time

you make any transfer/withdrawal from your Cashback Debit,

Personal Checking, or Money Market Account using an ATM or POS

terminal. Save this receipt in order to reconcile your Account and/

or to report any discrepancies or malfunctions.

4241

proceedings. We shall be entitled to rely upon the representations,

warranties, and statements made in such legal processes. You agree

to hold harmless and indemnify us for any losses, expenses, and

costs, including reasonable attorneys’ fees incurred by us as a result

of complying with such legal proceedings. In the event of your death,

we will not release funds on deposit until all legal documents we

require are delivered to us. We may pay all or any part of the funds in

a joint Account to a court or governmental agency upon receipt of a

garnishment, order, tax levy, or similar legal process identifying any

one or all of the owners of the joint Account.

31 ABANDONED ACCOUNTS

State laws governing abandoned Accounts may vary from state to

state. If we have not had contact from you, there is no activity on your

Account, and you have not otherwise indicated an interest in the

Account for a period of time specified by state law, the laws in most

states require us to treat the funds in such Account as abandoned

property and deliver the abandoned funds to the applicable state.

Once the property is turned over to the applicable state, you would

have to follow the state’s requirements and process to obtain return

of the funds we turned over to the state.

32 SEVERABILITY

Any term contained in this Agreement which is determined by a

court of competent jurisdiction to be invalid or unenforceable

under applicable law or regulation shall not affect the validity or

enforceability of the remaining terms.

33 TELEPHONE COMMUNICATIONS

(a) Authorization to Record Calls

You agree that Discover and its affiliates, agents, contractors, and

marketing partners may listen to or record telephone calls between

you and our representatives without additional notice to you.

(b) Authorization to Contact You by Phone

You agree that we (and our affiliates, agents, and contractors)

may monitor or record any calls between you and us. If we need

to contact you to service your Account, or to collect amounts

you owe to us, you authorize us (and our affiliates, agents, and

contractors) to contact you at any number (i) you have provided

to us, (ii) from which you called us, or (iii) which we obtained

and believe we can reach you at. We may contact you in any

way, such as calling, texting, or email. We may contact you using

an automated dialer or using pre-recorded messages. We may

contact you on a mobile, wireless, or similar device, even if you are

charged for it by your provider.

You also agree that Discover and its affiliates, agents, and

contractors may use other medium, as permitted by law and

including, but not limited to, mail and email, to contact you about

your Account or to offer products or services that may be of value

to you.

• If the transaction would have violated the terms of any of our

agreements with you or with governmental regulations.

• If the ATM where you are making the transfer does not have

enough cash.

There may be other exceptions not stated in this Agreement.

28 ERROR RESOLUTIONELECTRONIC FUND TRANSFERS

In case of errors or questions about EFTs, call us or write us as soon as you

can if you think your statement or receipt is wrong or if you need more

information about a transfer listed on the statement or receipt. We must

hear from you no later than 60 days after we made the FIRST statement

available on which the problem or error appeared. Call 1-800-347-7000

(1-888-204-8990 for AAA customers or 1-800-529-6987 for AAII customers)

or send your inquiry to us at Discover Bank, P.O. Box 30411, Salt Lake City, UT

84130-0411.

In order to more effectively serve you:

• Tell us your name and Account number.

• Describe the error or the transfer you are unsure about and explain

as clearly as you can why you believe it is an error or why you need

more information.

• Tell us the dollar amount of the suspected error.

If you tell us orally, we may require that you send us your complaint or

question in writing within ten (10) Business Days. We will determine

whether an error occurred within ten (10) Business Days after we hear

from you and will correct any error promptly. If we need more time,

however, we may take up to 45 days to investigate your complaint or

question. If we decide to do this, we will credit your Account within

ten (10) Business Days for the amount you think is in error, so that you

will have use of the money during the time it takes us to complete

our investigation. If we ask you to put your complaint or question in

writing and we do not receive it within ten (10) Business Days, we

may not credit your Account. For errors involving new Accounts,

POS, or foreign-initiated transactions, we may take up to 90 days to

investigate your complaint or question. For new Accounts, we may

take up to 20 Business Days to credit your Account for the amount you

think is in error. We will tell you the results within three (3) Business

Days after completing our investigation. If we decide that there was

no error, we will send you a written explanation. You may ask for

copies of the documents that we used in our investigation.

29 WAIVERS

No delay in our exercise of our rights, powers, or remedies will

affect your obligations under this Agreement. If we waive any of the

provisions of this Agreement, such waiver will only apply on that

occasion.

30 LEGAL PROCEEDINGS

We may comply with any writ of attachment, adverse claim,

garnishment, tax levy, restraining order, subpoena, warrant, or other

legal process which we believe (correctly or otherwise) to be valid

and we may restrict use of your Account if it is subject to any legal

4443

You and we will not choose to arbitrate any individual Claim you

or we bring in small claims court (or an equivalent court). This

means you or we may bring an action in small claims court (or an

equivalent court) without being subject to arbitration. However,

if a Claim is transferred, removed, or appealed from small claims

court (or an equivalent court) to a different court, or if any Claim

brought in small claims court exceeds the small claims court limit,

you or we may then choose to arbitrate.

(d) Governing Law and Rules

This arbitration agreement is governed by the Federal Arbitration Act

(“FAA”). Arbitration must proceed only with the American Arbitration

Association (“AAA”). The rules for the arbitration will be those in this

arbitration agreement and the procedures of the AAA, but the rules

in this arbitration agreement will be followed if there is disagreement

between the agreement and the AAA’s procedures. If the AAA’s

procedures change after the Claim is filed, the procedures in effect

when the Claim was filed will apply.

For a copy of the AAA’s procedures, to file a Claim, or for other

information, please contact the AAA at 1101 Laurel Oak Rd., Voorhees, NJ

08043, www.adr.org.

If the AAA is completely unavailable, and if you and we cannot agree

on a substitute, then either you or we may request that a court with

jurisdiction appoint a substitute.

(e) Fees and Costs

The parties shall pay filing, administrative, and arbitrator fees in

accordance with the Administrator’s rules and applicable law. If

you cannot afford to pay arbitration filing fees and you are not able

to obtain a waiver of fees from the Administrator, we will advance

them for you. You may obtain a waiver of these fees by sending

us a written request, personally signed by you, stating that you

cannot afford to pay your portion of said fees. Any request for us to

pay these fees should be sent to Discover, P.O. Box 30421, Salt Lake

City, UT 84130-0421. If you lose the arbitration, the arbitrator will

decide whether you must reimburse us for money we advanced

for you for the arbitration. If you win the arbitration, we will not ask

for reimbursement of money we advanced. Additionally, if you win

the arbitration, the arbitrator may decide that you are entitled to be

reimbursed your reasonable attorneys’ fees and costs (if actually

paid by you). Provided such an award is permitted by applicable

law, the arbitrator may also require a party to pay compensation,

expenses, and administrative fees (which include filing and hearing

fees) to the Administrator and/or to another party upon the

arbitrator’s determination that the party’s claim or counterclaim was

filed for purposes of harassment or is patently frivolous.

34 LIMITATION OF LIABILITY

YOU AGREE THAT WE SHALL NOT BE LIABLE FOR INDIRECT, SPECIAL,

OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION, LOST

PROFITS OR ATTORNEYS’ FEES, REGARDLESS OF THE FORM OF ACTION

AND EVEN IF WE HAD ADVANCE WARNING OF THE POSSIBILITY OF

SUCH DAMAGES.

35 ARBITRATION OF DISPUTES

(a) Agreement to Arbitrate

In the event of a dispute between you and us arising out of or

relating to this Account or the relationships resulting from this

Account, or any other dispute between you and us, including, for

example, a dispute based on a federal or state statute or local

ordinance (“Claim”), either you or we may choose to resolve the

Claim by binding arbitration, as described below, instead of in

court. Any Claim (except for a Claim challenging the validity or

enforceability of this arbitration

agreement, including the Class

Action Waiver) may be resolved by binding arbitration if either party

requests it. THIS MEANS IF EITHER YOU OR WE CHOOSE ARBITRATION,

NEITHER PARTY SHALL HAVE THE RIGHT TO LITIGATE SUCH CLAIM

IN COURT OR TO HAVE A JURY TRIAL. ALSO, DISCOVERY AND APPEAL

RIGHTS ARE LIMITED IN ARBITRATION. Even if all parties have opted

to litigate a Claim in court, you or we may elect arbitration with

respect to any Claim made by a new party or any new Claims later

asserted in that lawsuit. This arbitration agreement does not apply

if, on the date you submit your Application or on the date we seek to

invoke this arbitration agreement, you are a member of the Armed

Forces or a dependent of such a member covered by the federal

Military Lending Act. If you would like more information about

whether you are covered by the Military Lending Act, please contact

us at 1-844-DFS-4MIL (1-844-337-4645) or if you are calling from

outside the U.S. at +1-801-451-3730.

(b) Class Action Waiver

ARBITRATION MUST BE ON AN INDIVIDUAL BASIS. THIS MEANS

NEITHER YOU NOR WE MAY JOIN OR CONSOLIDATE CLAIMS

IN ARBITRATION BY OR AGAINST OTHER ACCOUNTHOLDERS,

OR LITIGATE IN COURT OR ARBITRATE ANY CLAIMS AS A

REPRESENTATIVE OR MEMBER OF A CLASS OR IN A PRIVATE

ATTORNEY GENERAL CAPACITY. The arbitrator may award

injunctive relief only in favor of the individual party seeking relief

and only to the extent necessary to provide relief warranted by

that party’s individual Claim. The arbitrator may not award class,

representative, or public injunctive relief. If a court decides that

applicable law precludes enforcement of any of this paragraph’s

limitations as to a particular Claim for relief, then after all appeals

from that decision have been exhausted, that Claim (and only that

Claim) must be severed from the arbitration and may be brought

in court. Only a court, and not an arbitrator, shall determine the

validity, scope, and effect of the Class Action Waiver.

4645

(i) Survival of this Agreement

This arbitration agreement shall survive:

• Closing of your Account;

• Any legal proceedings to collect money you owe;

• Any bankruptcy by you; and

• Any sale, assignment, or transfer by us or your Account.

(j) You Have the Right to Reject Arbitration for this Account. You

may reject the arbitration agreement, but only if we receive from

you a written notice of rejection within 30 days of your receipt of

this Agreement. You must send the notice of rejection to:

Discover Bank, P.O. Box 30411, Salt Lake City, UT 84130-0411.

Your rejection notice must include your name, address, phone

number, Account number, and personal signature. No one else

may sign the rejection notice for you. Your rejection notice

must not be sent with any other correspondence. Rejection of

arbitration will not affect your other rights or responsibilities under

this Agreement. If you reject arbitration, neither you nor we will be

subject to the arbitration agreement for this Account. Rejection of

arbitration for this Account will not constitute rejection of any prior

or future arbitration agreement between you and us.

36 EARLY WITHDRAWAL PENALTIES; ACCOUNT OPENING

REQUIREMENTS; SERVICE CHARGES

Early Withdrawal Penalties

For New CDs: Beginning on the 8th day after your CD is opened and

funded and for the next 22 calendar days, we will deduct each day’s

simple interest on the Issue Amount withdrawn from the funding

date to the date of withdrawal. Thereafter, the Early Withdrawal

Penalty will be calculated as described in the chart below.

For Renewing CDs: Beginning on the day your CD’s Grace Period

ends and for the next 20 calendar days, we will deduct each day’s

simple interest on the Issue Amount withdrawn from the maturity

date to the date of withdrawal. Thereafter, the Early Withdrawal

Penalty will be calculated as described in the chart below.

(f) Hearings and Decisions

Arbitration hearings will take place in the federal judicial district

where you live. A single arbitrator will be appointed.

The arbitrator must:

• Follow all applicable substantive law, except when contradicted by

the FAA;

• Follow applicable statutes of limitations;

• Honor valid claims of privilege; and

• Issue a written decision including the reasons for the award.

The arbitrator’s decision will be final and binding except for any

review allowed by the FAA. However, if more than $100,000 was

genuinely in dispute, then either you or we may choose to appeal to

a new panel of three arbitrators. The appellate panel is completely

free to accept or reject the entire original award or any part of it. The

appeal must be filed with the AAA not later than 30 days after the

original award issues. Appeal costs will be allocated consistent with

the AAA’s Consumer Arbitration Rules and Due Process Protocol.

Any arbitration award may be enforced (such as through a judgment)

in any court with jurisdiction. Any finding, award, or judgment from an

arbitration of any Claim shall apply only to that arbitration. No finding,

award, or judgment from any other arbitration shall impact the

arbitration of any Claim

(g) Claim Notice and Special Payment

If you have a Claim, before initiating an arbitration proceeding, you

may give us written notice of the Claim (“Claim Notice”) at least 30

days before initiating the arbitration proceeding. The Claim Notice

must include your name, address, and Account number and explain

in reasonable detail the nature of the Claim and any supporting facts.

Any Claim Notice shall be sent to us at Discover, P.O. Box 794, Deerfield,

IL 60015 (or such other address as we shall subsequently provide to

you). If, and only if, (1) you submit a Claim Notice in accordance with this

Agreement on your own behalf (and not on behalf of any other party);

and (2) an arbitrator, after finding in your favor in any respect on the

merits of your Claim, issues you an award that (excluding any arbitration

fees or attorneys’ fees and costs awarded by the arbitrator) is greater

than the value of Discover’s last written settlement offer made before

an arbitrator was selected, then you will be entitled to the amount of the

award or $7,500, whichever is greater. If you are entitled to the $7,500,

you will receive in addition any arbitration fees or attorneys’ fees and

costs awarded by the arbitrator.

(h) Other Beneficiaries of this Agreement to Arbitrate

In addition to you and us, the rights and duties described in

this arbitration agreement apply to: our Affiliates’ successors,

subsidiaries, and our and their officers, directors, and employees;

any third party co-defendant of a Claim subject to this arbitration

agreement; and all joint Accountholders of your Account(s).

47 48

Affinity Online

Savings

Account

$0 Certain withdrawals and transfers limited to 6 items per

month (See Section 11)

Money Market $2,500 Certain withdrawals and transfers limited to 6 items per

month (See Section 11)

CDs/IRA CDs $2,500

Account Service Charges (Not Applicable to IRAs)

Outgoing Wire Transfer $30

We do not charge Account fees for Account activities including,

but not limited to: having insufficient funds in or overdrawing your

Account, excessive withdrawals on Money Market and Savings

Accounts, going below a minimum balance, placing stop payment

orders, replacing Debit Cards, or ordering checks.

MoneyPass

is a registered trademark of Fiserv Solutions, LLC or its

affiliates.

Allpoint

is a registered trademark of ATM National, LLC.

Zelle

and the Zelle

related marks are wholly owned by Early

Warning Services, LLC and are used herein under license.

Venmo

and PayPal

are registered trademarks of PayPal, Inc.

AAA

is a trademark of the American Automobile Association, Inc.

AAII

is a trademark of the American Association of Individual

Investors, Inc.

Early Withdrawal Penalty is calculated

based on the Issue Amount Withdrawn

CDs opened or renewed through 3/14/2013

Term

Penalty

Less than 1

Year

1—5 Years Greater

than 5 Years

3 months

simple

interest

6 months

simple

interest

9 months

simple interest

CDs opened or renewed 3/15/2013 through 2/16/2014

Term

Penalty

Less than 1

Year

1 Year to

< 4 Years

4 Years to

< 7 Years

7 Years

or Greater

3 months

simple

interest

6 months

simple

interest

9 months simple

interest

15 months

simple

interest

CDs opened or renewed on or after 2/17/2014

Term

Penalty

Less than 1

Year

1 Year to

< 4 Years

4 Years to

< 5 Years

5 Years to

< 7 Years

7 Years

or Greater

3 months

simple

interest

6 months

simple

interest

9 months simple

interest

18 months

simple

interest

24 months

simple

interest

In some cases, the Early Withdrawal Penalty may reduce the principal in the

CD.

One month equals 30 days for simple interest calculation.

All Early Withdrawal Penalties will be automatically deducted from

your Account except for those instances described in Section

24. Each IRA Plan (Traditional or Roth) you open is subject to

revocation as defined in Section 3(iii)(a)(2). An Early Withdrawal

Penalty will not apply if you revoke your IRA Plan under Section 3

(iii)(a)(2).

Account Opening Requirements & Service Charges:

Account Opening Requirements

Product Minimum Opening

Balance

Other Product-Specific Requirements

Cashback

Debit

$0 Online Account only

Personal

Checking

$0 Must be opened in person at the Retail Branch

Savings/IRA

Savings

$0 Certain withdrawals and transfers limited to 6 items per

month (See Section 11)

Statement

Savings

$0 Must be opened in person at the Retail Branch

Affinity

Money Market

Account

$0 Certain withdrawals and transfers limited to 6 items per

month (See Section 11)

Affinity CDs/

IRA CDs

$0 See Section 36 for Early Withdrawal Penalties that

may apply