Guaranteed Income Bond (GIB)

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Maintenance Bond

    A type of surety bond purchased by a contractor that protects ...
  2. Capital Gains Treatment

    The specific taxes assessed on investment capital gains as determined ...
  3. Investment

    An asset or item that is purchased with the hope that it will ...
  4. Bond

    A debt investment in which an investor loans money to an entity ...
  5. Stock

    A type of security that signifies ownership in a corporation ...
  6. Equity Derivative

    A derivative instrument with underlying assets based on equity ...
Related Articles
  1. Bond Call Features: Don't Get Caught ...
    Bonds & Fixed Income

    Bond Call Features: Don't Get Caught ...

  2. Basics Of Federal Bond Issues
    Bonds & Fixed Income

    Basics Of Federal Bond Issues

  3. The Advantages Of Bonds
    Investing

    The Advantages Of Bonds

  4. Savings Bonds For Income And Safety
    Bonds & Fixed Income

    Savings Bonds For Income And Safety

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center