Guaranteed-investment-contract meaning

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.
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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 investor’s ability to withdraw funds. Similar contracts offered by banks are called bank investment contracts or bank deposit agreements.
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