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.

  1. Maturity

    The period of time for which a financial instrument remains outstanding. ...
  2. Deposit Interest Rate

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

    A financial institution licensed as a receiver of deposits. There ...
  4. Thrift Bank

    A financial institution focusing on taking deposits and originating ...
  5. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  6. Credit Union

    Member-owned financial co-operative. These institutions are created ...
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