DEFINITION of 'All Savers Certificate'

A type of nontaxable certificate of deposit account with a duration of one year that was used primarily by thrift institutions to build funds for mortgage lending. All Savers Certificates were authorized by the Economic Recovery Tax Act of 1981.

BREAKING DOWN 'All Savers Certificate'

The Economic Recovery Tax Act of 1981 (ERTA, or the Kemp-Roth Tax Cut) reduced individual income tax rates, accelerated expensing of depreciable property and created incentives for small businesses and savings. Under terms of the Act, All Savers Certificates were issued only between October 1, 1981, and December 31, 1982. The minimum deposit was $500 and provided a fixed rate tied to Treasury bills. Holders received a one-time exemption from federal income tax of up to $1,000 on earned interest ($2,000 on a joint return).

RELATED TERMS
  1. Mutual Investment Certificate

    A certificate issued by a local or municipal authority for the ...
  2. One-Day Certificate

    A type of temporary financing used by the U.S. Treasury. One-day ...
  3. Yankee Certificate Of Deposit

    A certificate of deposit issued by a foreign bank in the United ...
  4. Periodic Payment Plan Certificate

    A certificate representing ownership interest in a periodic payment ...
  5. Indexed Certificate Of Deposit ...

    A savings certificate entitling the bearer to receive an interest ...
  6. Certificate Of Indebtedness

    A short-term fixed income security once issued by the United ...
Related Articles
  1. Insights

    What Is a Silver Certificate Dollar Bill Worth Today?

    Although a silver-certificate dollar bill no longer can be exchanged for silver, the date, grade and unique features make certain certificates very valuable.
  2. Investing

    4 Reasons Why Savers Fare Better Than Spenders

    A recent HSBC study suggests that savers had an easier time weathering the recent financial storm.
  3. Investing

    What is a Demand Deposit?

    A demand deposit is any type of account where the money in the account may be withdrawn at any time without prior notice to the financial institution.
  4. Investing

    Old Stock Certificates: Lost Treasure Or Wallpaper?

    What if you've discovered some old shares in bearer form? Follow our tips and find out what they're worth.
  5. Personal Finance

    Where To Put Your Cash: Call Deposit Vs Time Deposit Accounts

    Time deposit accounts and call deposit accounts allow customers to earn higher interest in exchange for less access to their cash.
  6. Investing

    7 Facts You Didn't Know About The Greenback

    There's more to that $10 bill in your pocket than you think - read on for some interesting facts about U.S. currency.
  7. Investing

    What's a Commercial Bank?

    A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal and mortgage loans; and offers basic financial products ...
  8. Investing

    Explaining Term Deposits

    A term deposit (more often called a certificate of deposit or CD) is a deposit account that is made for a specific period of time.
  9. Personal Finance

    Becoming Part Of The Thrift Market: How To Make And Save Money

    With another recession looming large in the United States, here's how the thrift industry offers hope for the future.
  10. Investing

    How Time Deposits Work

    A time deposit is an interest-bearing bank deposit that has a specific maturity date.
RELATED FAQS
  1. What are the typical durations for a certificate of deposit?

    Investing in a certificate of deposit offers individuals the ability to earn interest on idle funds with less risk than stock ... Read Answer >>
  2. I hold stock certificates in a company that just had a stock split. What happens ...

    The short answer is that a stock split will have little effect on the holder of stock certificates. In most cases when an ... Read Answer >>
  3. I lost my share certificate. Do I still own the stock?

    Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. However, in order ... Read Answer >>
  4. Do financial advisors prepare tax returns for clients?

    Find out how financial advisors are often involved in tax planning and tax return preparation for their clients as well as ... Read Answer >>
Hot Definitions
  1. Straddle

    An options strategy in which the investor holds a position in both a call and put with the same strike price and expiration ...
  2. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  3. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that eventually eliminated tariffs to encourage economic activity between the United ...
  4. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  5. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  6. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
Trading Center