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Guaranteed Investment Contract

A pension plan purchased through a bank or an insurance company for a lump sum in which the principal is guaranteed by the issuer. One may receive payments from a GIC either in installments or as a lump sum after retirement. A GIC provides the pensioner with a small interest rate that is not guaranteed, but the fact that the principal is guaranteed makes it a relatively low-risk investment.


Guaranteed investment contract (GIC).

A guaranteed investment contract, or GIC (pronounced gick), promises to preserve your principal and to provide a fixed rate of return when you begin to withdraw from the contract, typically after you retire.

You can invest in a GIC through a salary reduction plan, such as a 401(k) or 403(b) sponsored by your employer, provided that investment option is offered.

Because of their fixed rates, GICs are vulnerable to inflation. And you may have to pay a penalty if you decide to change from a GIC to a different investment.

Insurance companies that offer GICs assume the risk that the rate they earn on their investments will outperform the rates they've guaranteed on the GICs.

References in periodicals archive ?
Loh Wai Keong, managing director and co- head ( Asia), GIC Real Estate, said, "GIC is confident in India's long- term growth potential and we look forward to partnering DLF to tap into the attractive opportunities of India's real estate.
In addition, GIC benefits from healthy liquidity conditions derived from a well-managed issuance program and demonstrated access to a diversified investor base.
Despite the worsened underwriting performance for fiscal year 2011-12, GIC Re continues to show improvement in its expense ratio, mainly attributed to the decreasing trend in the net commission ratio as a result of continuous reductions in flat commission and the introduction into profit commission.
As a disciplined, long-term value investor, GIC believes in the strong growth potential of China's aesthetic medical sector.
Fitch's rating actions align the rating assigned to Pallas and its GIC obligations with the credit risk of The Bank of New York Mellon Corporation, given that this is where all of the transaction's assets are expected to be invested over the short to intermediate-term.
KUWAIT, Sept 3 (KUNA) -- Gulf Investment Corporation (GIC) contributed to around 60 investment projects in the six GCC countries, over the past seven years, with a value amounting to USD 30 billion, GIC CEO said in remarks public Monday.
Canadians rank safety of their investments as more important than the highest interest rates when considering Guaranteed Investment Certificates (GICs), according to The Guarantees in Life: RBC 2012 GIC Poll.
GIC was established in Kuwait in 1983 to promote private enterprise and economic growth in the GCC region.
The General Assembly reviewed and approved the financial statements during their meeting which was held in GIC headquarters in Kuwait on April 6, 2014.
The better synthetic arrangements not only capture most, if not all, of the attractive characteristics that participants have enjoyed in GIC funds in the past, but they also have the advantages of industry diversification, enhanced protection against credit risk, and, in some cases, surprisingly competitive or even superior total returns.
They should know that, long term, a GIC option will probably underperform a bond fund option by I to 2 percent a year and a stock or equity option by 3 to 4 percent.