Guaranteed Investment Contract - GIC


DEFINITION of 'Guaranteed Investment Contract - GIC'

Insurance contracts that guarantee the owner principal repayment and a fixed or floating interest rate for a predetermined period of time.

BREAKING DOWN 'Guaranteed Investment Contract - GIC'

Guaranteed investment contracts are typically issued by insurance companies and marketed to institutions that qualify for favorable tax status under federal laws. These products provide institutions with guaranteed returns.

  1. Interest

    The charge for the privilege of borrowing money, typically expressed ...
  2. Stable Value Fund

    An investment vehicle found in company retirement plans. Stable ...
  3. Principal

    1. The amount borrowed or the amount still owed on a loan, separate ...
  4. Life Insurance

    A protection against the loss of income that would result if ...
  5. Institutional Investor

    A non-bank person or organization that trades securities in large ...
  6. Funding Agreement

    A low-risk, fixed-income investment. A funding agreement offers ...
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