So called "guaranteed " funds comprise two basic types; those which " guarantee" the return of capital or a prescribed proportion of capital (usually between 90-95%) over a fixed period, normally five years, approximately equivalent to long term fixed interest rate returns, or to equity stockmarket returns minus the option or futures cost of the "insurance"; and those which offer "stepped" or variably adjusted downside protection, normally limited to 5%-15% in exchange for equity stockmarket returns minus, as above, the cost of "insurance".
A cheque amount that the source bank branch reserves in its holding account to ensure that funds are available upon cashing the instrument. Guaranteed funds, in the form of a certified cheque or a bank draft, are the equivalent of cash in the amount of the instrument.