Guaranteed Income Bond (GIB)

DEFINITION of 'Guaranteed Income Bond (GIB)'

A guaranteed income bond (GIB) is an investment tool that provides income in the form of interest over a specified time period, usually between 6 months and 10 years. These bonds are issued by life insurance companies in the United Kingdom and are generally considered a low-risk investment. You can typically choose how frequently you want the payments, such as monthly, quarterly or yearly.

BREAKING DOWN 'Guaranteed Income Bond (GIB)'

Guaranteed income bonds provide investors with fixed periodic interest payments so the investor knows what to expect in terms of return on their investment. The initial capital investment is guaranteed to be safe under most circumstances and is returned at the end of the investment period.

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