Small Saver Certificate - SSC

AAA

DEFINITION of 'Small Saver Certificate - SSC'

A deposit savings account that has no minimum balance requirement. SSCs were created in 1980 to provide banks and thrifts with a deposit vehicle having an 18-month maturity, in order to compete with money market funds. However, the interest rate ceiling on timed deposit accounts having maturity dates of more than 31 days was eliminated in 1983.

INVESTOPEDIA EXPLAINS 'Small Saver Certificate - SSC'

Today, lenders issue SSCs in small denominations like $500. They can have maturities of as few as 12 months. Interest on SSCs typically compounds monthly. The annual percentage yield (APY) depends on the maturity term of the small saver certitficate.

RELATED TERMS
  1. Deposit Interest Rate

    The interest rate paid by financial institutions to deposit account ...
  2. Bank

    A financial institution licensed as a receiver of deposits. There ...
  3. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  4. Maturity

    The period of time for which a financial instrument remains outstanding. ...
  5. Thrift Bank

    A financial institution focusing on taking deposits and originating ...
  6. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all ...
Related Articles
  1. Are CDs Good Protection For The Bear ...
    Insurance

    Are CDs Good Protection For The Bear ...

  2. How To Compare Yields On Different Bonds
    Forex Education

    How To Compare Yields On Different Bonds

  3. APR and APY: Why Your Bank Hopes You ...
    Investing Basics

    APR and APY: Why Your Bank Hopes You ...

  4. 529 Risks to Take (Or Not)
    Savings

    529 Risks to Take (Or Not)

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. 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 ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center