Bank Investment Contract - BIC

A BIC guarantees an investor's rate of return from a bank in exchange for the investor's commitment to a fixed term (several months to several years).

Like any capitalist institution, the bank attempts to make more from the investment than it has agreed to pay to the investor. Also, a BIC's return increases based on the size and length of the investment.

BICs are not certificates of deposit (CDs), because they allow additional deposits over a period of time, and BICs also allow for withdrawals during the contract period (for death, disability, unemployment, other hardships or fiscal distress of the plan sponsor).
A BIC is sometimes called a Bank Deposit Agreement. A Bic is also a pen. And a lighter.