Guaranteed Investment Certificate
- An investment in which you deposit money, over a fixed period of time, and are paid a set rate of interest.
Related Terms and Acronyms
- Bond — Definition,
- A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
- Fixed-Return Investments — Definition,
- Investments that provide a stable return.
- Interest (int, IN) — Acronym & Abbreviation,
➥ Bank account transaction code.
- Money paid for the use of borrowed funds, usually expressed as an annual percentage.
- Investment — Definition,
- Something you put your money into in order to make money.
- Money Market Account (MMA) — Acronym,
- A bank account that restricts the type and number of withdrawals. The account also earns interest similar to money market funds.
- Return — Definition,
- Any increase in value or in income you earn on purchase or investment.
- Term — Definition,
- The length of time you commit to repay a lender or bank at an agreed upon interest rate and payment schedule. The interest rate usually remains constant during this term unless the commitment states otherwise. For example, a five year fixed rate mortgage has a term of five years.
- Term Deposit (TD) — Acronym,
- An investment product in which you deposit a fixed sum of money for a set period of time and are paid interest.
- Variable Interest Mortgage — Definition, Important,
- A loan where the interest rate may vary during the term of the mortgage. The variance is usually tied to some specific factor such as prime bank rate or the guaranteed investment certificate rate for a designated lender.