guaranteed investment contract Finance Definition
A debt instrument such as a note that is
issued by an insurance company, usually in a large denomination, which is often
bought for retirement plans. The investor pays money upfront and then the
principal and interest rate payments are guaranteed.
guaranteed investment contract (GIC) Finance Definition
An investment product issued by an
insurance company. The investor pays the issuer and in turn receives regular
interest payments. The terms of a GIC vary significantly. Some offer a high
initial return guarantee, which imposes some restrictions on the investors
ability to withdraw funds. Similar contracts offered by banks are called bank
investment contracts or bank deposit agreements.
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