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. Yankee Certificate Of Deposit

    A certificate of deposit issued by a foreign bank in the United ...
  2. Currency Certificate

    A note that grants the holder the right to convert a specific ...
  3. Periodic Payment Plan Certificate

    A certificate representing ownership interest in a periodic payment ...
  4. Certificate Of Indebtedness

    A short-term fixed income security once issued by the United ...
  5. Trust Certificate

    A bond or debt investment, usually in a public corporation, that ...
  6. Mortgage Credit Certificates

    A certificate provided by the originating mortgage lender to ...
Related Articles
  1. Managing Wealth

    Index-Linked Certificates Of Deposit: Upside Potential, Low Risk

    Index-linked CDs generate returns similar to indexes, without the potential for loss.
  2. Insights

    How the Eurozone's Fight Against Deflation Is Hurting Savers

    The European Central Bank is fighting a desperate battle against deflation. Find out what it is doing and how it is going to affect savers.
  3. 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.
  4. 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.
  5. 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 ...
  6. 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.
  7. Insights

    Finding The Right Accounting Certification

    The right accounting certification can open the doors of opportunity.
  8. Investing

    How Time Deposits Work

    A time deposit is an interest-bearing bank deposit that has a specific maturity date.
  9. Financial Advisor

    Beat Retirement Planning Anxiety with These Tips

    It’s never too early to start thinking about saving for a secure retirement. The key is to start early and not leave things to chance. Here's how.
  10. Taxes

    Do Tax Cuts Stimulate The Economy?

    Learn the logic behind the belief that reducing government income benefits everyone.
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 >>
Hot Definitions
  1. Price Elasticity Of Demand

    A measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. Price ...
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  3. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center