Guaranteed Investment Contract - GIC

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Stable Value Fund

    An investment vehicle found in both company retirement plans ...
  2. Institutional Investor

    A non-bank person or organization that trades securities in large ...
  3. Interest

    1. The charge for the privilege of borrowing money, typically ...
  4. Funding Agreement

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

    A protection against the loss of income that would result if ...
  6. Principal

    1. The amount borrowed or the amount still owed on a loan, separate ...
Related Articles
  1. How An Insurance Company Determines ...
    Home & Auto

    How An Insurance Company Determines ...

  2. Life Insurance: Putting A Price On Peace ...
    Insurance

    Life Insurance: Putting A Price On Peace ...

  3. I know there is a form of deposit insurance ...
    Home & Auto

    I know there is a form of deposit insurance ...

  4. How the Affordable Care Act Changed ...
    Insurance

    How the Affordable Care Act Changed ...

comments powered by Disqus
Hot Definitions
  1. 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 ...
  2. 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 ...
  3. Ratio Analysis

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

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

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center