Small Saver Certificate - SSC

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.

BREAKING DOWN '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.