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. One-Day Certificate

    A type of temporary financing used by the U.S. Treasury. One-day ...
  2. Push Out

    One of two ways to effect a stock split. In a push out, new share ...
  3. Periodic Payment Plan Certificate

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

    A certificate of deposit issued by a foreign bank in the United ...
  5. Trust Certificate

    A bond or debt investment, usually in a public corporation, that ...
  6. Currency Certificate

    A note that grants the holder the right to convert a specific ...
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. Taxes

    Saver's Tax Credit: A Retirement Savings Incentive

    Here's another reason to put money toward your retirement nest egg.
  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    A demand deposit is any type of account where the money in the account may be withdrawn at any time without prior notice to the financial institution.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. 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.
  5. 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.
  6. Investing

    What's an Incumbency Certificate?

    An incumbency certificate lists an organization’s incumbent directors and officers.
  7. Insights

    Finding the Right Accounting Certification

    An accounting certification may be the boost your career needs. Find out how to get the most bang for your buck.
  8. Retirement

    How to Become a Retirement Super Saver

    Accelerating your retirement savings may mean trimming other areas of your financial life.
  9. 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.
  10. Insights

    Finding The Right Accounting Certification

    The right accounting certification can open the doors of opportunity.
RELATED FAQS
  1. How do you get a hard copy of a stock certificate?

    Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was ... Read Answer >>
  2. 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 >>
Hot Definitions
  1. Risk-Return Tradeoff

    The principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with ...
  2. Racketeering

    A fraudulent service built to serve a problem that wouldn't otherwise exist without the influence of the enterprise offering ...
  3. Aggregate Demand

    The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.
  4. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  5. Blue Chip

    A blue chip is a nationally recognized, well-established, and financially sound company.
  6. Payback Period

    The length of time required to recover the cost of an investment. The payback period of a given investment or project is ...
Trading Center