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Guaranteed Income/Growth Bond

A Guaranteed Income Bond (GIB)/ Guaranteed Growth Bond (GGB)
A Guaranteed Income Bond (GIB) is a short-term life assurance contract guaranteeing a fixed income over a fixed term.

The original investment is guaranteed to be repaid in full at the end of the term. The term is usually between one and five years, and the investment consists of fixed interest stocks.

A Guaranteed Growth Bond (GGB) is a short term contract, giving a guaranteed return at the maturity date. UK based GIBs and GGBs are paid net of basic tax, which cannot be reclaimed even by non-taxpayers.

Offshore GIBs and GGBs are paid gross, and deferment of tax is permitted.