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.

RELATED TERMS
  1. Window Guaranteed Investment Contract ...

    A type of investment plan where a series of payments are made ...
  2. Bullet GIC

    A type of guaranteed investment contract where a single payment ...
  3. Financial Guarantee

    An non-cancellable indemnity bond that is backed by an insurer ...
  4. Guarantee Company

    A form of corporation designed to protect members from liability, ...
  5. Bank Investment Contract - BIC

    A security or portfolio of securities that offers a guaranteed ...
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific ...
Related Articles
  1. Retirement

    The Cost Of Variable Annuity Guarantees

    These products tempt investors with some impressive benefits - but they come at a price.
  2. Financial Advisor

    How Fixed Index Annuities Yield Retirement Income

    For investors worried about outliving their income in retirement, fixed indexed annuities can help fill the gap. Here's how.
  3. Financial Advisor

    Build Your Own Annuity

    Here are some tips on the different types of annuities to have in your portfolio.
  4. Insurance

    Are You Protected If Your Insurance Company Goes Belly-Up?

    Consumer protection against insurance company failures actually falls into the hands of state governments. How much protection do you have?
  5. Insurance

    Understanding Your Insurance Contract

    Learn how to read one of the most important documents you own.
  6. Retirement

    Vary Your Options With Variable Annuities And Insurance

    Find out how to get the customized insurance coverage you need and want.
  7. Investing

    What Is An Annuity?

    These contracts provide a guaranteed income stream. Learn how annuities work and their benefits.
  8. Investing

    Calculating Floating Stock

    Floating stock is the number of shares a company has available for trade in the open market.
  9. Investing

    Floating Stock

    Floating stock is the number of a company’s shares that are available for the public to buy and sell.
  10. Financial Advisor

    Advising FAs: Explaining Life Insurance to a Client

    Life insurance was initially designed to protect the income of families, particularly young families in the wealth accumulation phase, in the event of the head of household's death.
RELATED FAQS
  1. How does a company obtain a bank guarantee?

    Find out how bank guarantees work, why they are issued and the process that a business normally goes through to acquire one ... Read Answer >>
  2. What is the difference between a bank guarantee and a bond?

    Understand what a bank guarantee is and what a bond is, and which one is a debt instrument. Learn the differences between ... Read Answer >>
  3. What does floating stock tell traders about a particular stock?

    Learn about what floating stock tells a trader about a particular stock. One commonality of the biggest winners in stock ... Read Answer >>
  4. How does the insurance sector work?

    Learn more about the insurance sector, a historically safe place for equity investors and the home of some of the largest ... Read Answer >>
  5. Are variable annuities guaranteed?

    Learn why variable annuities do not come with guarantees, but understand how investors may protect their principal by purchasing ... Read Answer >>
Hot Definitions
  1. Blue Chip

    A blue chip is a nationally recognized, well-established, and financially sound company.
  2. Payback Period

    The length of time required to recover the cost of an investment. The payback period of a given investment or project is ...
  3. Collateral Value

    The estimated fair market value of an asset that is being used as loan collateral. Collateral value is determined by appraisal ...
  4. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  5. Current Account

    The difference between a nation’s savings and its investment. The current account is defined as the sum of goods and services ...
  6. Liability

    Liabilities are defined as a company's legal debts or obligations that arise during the course of business operations.
Trading Center