The only domains I haven't wanted I just left to expire. I actually went back and picked one up again before it became available for other users, and if there is a risk you might want to change your mind then the grace period becomes useful.
1and1 charges you even if they weren't successful in the renewal.
What grace period are you talking about? I though that when domain expires you have no right over it any more.
That's awful! Why do they do that?
Make sure they're not set to auto renew, and simply let them expire.
@cableguy .. please explain the catch in their TOS
Ideally owner would login to their control panel, and 'cancel' the renewal of the domain. This then notifies registrar and they wouldn't send you notifications.