Definition of Bank Investment Contract (BIC)

contract issued by a bank to a corporate investor, usually a company-sponsored profit sharing plan or 401(k) plan, guaranteeing a fixed rate of return on invested capital over the life of the contract. A bank investment contract is similar to a guaranteed investment contract (GIC) sold by insurance companies, has a maturity of one to ten years, and the added protection of federal deposit insurance up to the $100,000 limit per insured account.

bank-guaranteed interest in a portfolio providing a specified yield over a specified period. For insurance company equivalent, see guaranteed investment contract (GIC).