guaranteed investment contract. A retirement plan funding vehicle under which an insurer accepts a single deposit from the group plan sponsor for a specified period. The insurer invests the funds, and guarantees the plan sponsor at least a specified investment return. Also known as guaranteed interest contract and guaranteed income contract.
Guaranteed Income Certificate. a sum of money that an investor (like you) lends to a bank, trust company, or credit union for a fixed number of months or years. Interest is paid at a guaranteed rate at specified times. All GICs have a maturity date, and only some may be cashed before that time. Insurance companies sometimes use the name GIAs.
(Guaranteed Investment Certificate) A savings instrument that pays a fixed rate of interest over a specified term.
guaranteed investment contract. Investment instruments issued by insurance companies to large investors such as pension funds with guaranteed principal and interest from one to five years.
Guaranteed Investment Certificate. Investments offered by banks, trust companies and other financial institutions, which pay a predetermined rate of interest for a specified term and are usually not redeemable prior to the maturity date.
See Guaranteed Investment Certificate.
Guaranteed Investment Certificate. A deposit instrument requiring a minimum investment at a pre-determined rate of interest for a stated term; most commonly available from banks and trust companies.
guaranteed investment contract. A pension plan funding vehicle in which an insurer accepts a single deposit from a plan sponsor for a specified period of time, such as five years, and holds the deposit at a specified rate of interest. At the end of the period, the deposited funds, including accumulated interest, are returned to the plan sponsor, who can reinvest the plan assets with the insurer or with another party. Also called a guaranteed income contract or a guaranteed interest contract.
Guaranteed Investment Contract. An agreement under which an investor, usually a pension fund, places assets with an insurance company, which guarantees the return of principal plus payment of interest at a stipulated rate. While many variables can enter into the agreement, such as the amounts to be deposited and the duration of the contract, all GICs require that the principal be repaid along with the guaranteed interest credited on the deposits. GICs come in many forms. The simplest GICs are "bullet" contracts under which the funds are returned in a lump sum. Other contracts allow for payouts over time. GICs also may differ according to deposit methods (lump sum or "window" periods) and maturity (ranging from one to ten years). Additionally, in recent years, companies have offered indexed or floating rate GICs in addition to the fixed-rate instruments. The primary noninsurance competition for GICs is the Bank Investment Contract (BIC), which is particularly popular for maturities of less than three years.
Guaranteed investment contract. A contract under which the Plan invests money (principal) with an insurance company or other financial institution. The financial institution promises to repay principal in full plus accrued interest on a specific date in the future, typically after a period of one to five years. The term "guaranteed" refers only to the issuerâ€(tm)s promise to repay, and not to any type of government or any other guarantee.
Guaranteed Investment Certificate. An interest-bearing deposit with a term usually from one to five years. Interest on a GIC may be paid periodically (monthly, quarterly, semi-annually, annually), or may compound and become payable on maturity, but it is taxable every year regardless of whether it is actually received.
Guaranteed investment certificate. An investment that offers a guaranteed rate of return over a fixed period of time, usually between 30 days and 5 years.
Guaranteed investment contract. A GIC (pronounced gick) is an insurance company product designed to preserve your principal and to provide a fixed rate of return. You may invest in a GIC through an employer sponsored salary reduction plan, such as a 401(k) or 403(b), if it is one of the investment options offered.
Guaranteed investment certificate. A deposit instrument most commonly available from trust companies or banks requiring a minimum investment at a predetermined rate of interest for a stated term, such as one or five years. GICs are generally non-redeemable and non-transferable before maturity.
Guaranteed Investment Certificate. An investment where you deposit money over a fixed period of time (usually one to five years) and are paid a set rate of interest. Your GIC interest income may be paid out periodically or may compound and be payable upon maturity. Either way, interest income is taxable every year regardless of whether it is actually received.
Guaranteed Investment Contract. A book value investment vehicle issued by an insurance company, backed by the issuer's general account.
A GIC is a security issued by most financial institutions. It shows that an amount has been invested at a fixed rate of interest for a given period.
Guaranteed investment certificate, a deposit certificate usually issued by a trust company or other financial institution and covering a specific period. An interest-paying investment in which the investor commits for a specified term for a specified rate of interest, usually anywhere from 30 days to 5 years.
Guaranteed Investment Contract. A contract issued and backed by the assets of the issuing corporation, such as an insurance company or other financial institution that offers a predetermined or set return.
See: Guaranteed Investment Contract
Guaranteed investment contract. A pure investment product in which a life company agrees, for a single premium, to pay at a maturity date the principal amount of a predetermined annual crediting (interest) rate over the life of the investment.
Guaranteed interest contract. Contracts offered by insurance companies that guarantee a rate of return on assets for a fixed period, and payment of principal and accumulated interest at the end of the period. GICs sometimes are used to fund the fixed-income option in defined contribution plans, such as 401(k) plans.
Guaranteed Investment Certificate. A debt security issued by a financial institution for a certain term and interest rate, providing a guaranteed return to the investor but usually with limited flexibility to access funds before maturity.
Guaranteed Investment Certificate. A debt security issued by a bank or trust company for a fixed sum of money, maturing after a fixed length of time and paying a fixed rate of interest, usually higher than that paid on a premium savings account. GICs are redeemable only at maturity.
Guaranteed Investment Contract issued by an insurance company. A typical choice in a 401(k) plan, it offers some security of a dependable return.
Guaranteed investment certificate. A GIC gives you a guaranteed rate of return over a specified period of time, usually between 30 days and 5 years. GICs are available from banks and financial institutions.
Guaranteed Investment Contract. An agreement between an insurance company and a corporate profit-sharing or pension plan that guarantees a specific rate of return over the time span of the agreement.
Guaranteed Investment Contract. A group annuity contract or funding agreement issued by an insurer that promises to pay a fixed rate of interest and to return the investor's principal after a specified term, usually one to five years. Note: "Guaranteed" does not mean return of principal is guaranteed. A GIC is guaranteed only by the issuing insurer, not by the government or the retirement plan.
Guaranteed Investment Contract. a contract between an insurance company and an individual investor. The amount a client invests in a GIC is guaranteed by the insurance company, as well as the rate of return, which is fixed (and this return is about 0.5 to 1.5 percent higher than a comparable certificate of deposit).
guaranteed investment certificate. an investment in which you deposit money with a financial institution for a fixed period of time and receive a specified rate of interest
Guaranteed investment contract. A pure investment product in which a life company agrees, for a single premium, to pay the principal amount of a predetermined annual crediting (interest) rate over the life of the investment, all of which is paid at the maturity date.
See guranteed investment contract (GIC).
guaranteed investment contract. A retirement plan funding vehicle under which the insurer accepts a single deposit from the plan sponsor and guarantees to pay a specified interest rate on the funds deposited during a specified time period. Also called a guaranteed income contract or a guaranteed interest contract.
Guaranteed Investment Certificate. A deposit instrument most commonly available from trust companies, requiring a minimum investment at a predetermined rate of interest for a stated term. Generally non-redeemable prior to maturity, but there can be exceptions.
Guaranteed Investment Contract. A contract whereby the insurance company accepts a specified amount of money from a qualified retirement plan and agrees to refund the principal and interest at a fixed date, 1 to 15 years in the future. Interest is guaranteed for the life of the contract.
Guaranteed Investment Contract hybrid annuity
