Guaranteed Investment Contract | GIC | Definition | What is the Guaranteed Investment Contract?

Guaranteed Investment Contract

Guaranteed Investment Contract | Definition

Guaranteed Investment Contract. An investment contract that has either interest or principal or both guaranteed. Major types of GICs include:

Bullet Contract
A guaranteed investment contract purchased with a single (one-shot) premium.

Floating Rate Contract
A guaranteed investment contract in which the credit rate is tied to some variable or "floating" ("floating") interest rate benchmark, such as a specific-maturity Treasury yield.

Participating GIC
A guaranteed investment contract (GIC) in which the policyholder is not guaranteed a crediting rate, but instead receives a return based on the actual experience of the portfolio managed by the life company.

Window Contract
A guaranteed investment contract purchased with deposits over some future designated time period (the "window"), usually between 3 and 12 months. All deposits made are guaranteed the same credit rating.

For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

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