A financial institution offers an "add-on CD." This certificate appears to be a standard CD certificate with a typewritten notation at the bottom -- "Description - 15 MO Add on CD." There is no specific mention of this product in the "Account Restrictions & Features" section in the "Important Terms and Conditions" outlined on the reverse side of the certificate.

The certificate is issued at a 7% rate. Can the institution now discontinue the add-on feature on those existing CDs because of the "unprecedented drop in interest rates over the past year," under the terms & conditions of a generic membership application and agreement which references savings accounts in general, makes no reference to certificates of deposits, and, states, "This account is also subject to such other forms and conditions as the [institution] may establish from time to time. The [institution] may change the terms and conditions of this account upon giving 30 calendar days advance written notice?"

If the CD was established as a fixed-rate instrument, the rate is good for the 15-month period. I know of no way to get out of that contractual agreement with the customer. We offer a similar product; however, it is a variable-rate instrument which floats with the 60-day T-Bill rate.