A New Feature on GetEquity: Flexible Interest Payouts
We’ve introduced Flexible Interest Payouts, a new feature that gives you more control over when you receive your investment interest on eligible investments.
Some investors prefer to receive their interest regularly, giving them access to cash along the way. Others would rather leave their investment untouched and receive their interest when the investment matures.
With Flexible Payouts, eligible investments now give you more control over when you receive your interest. Instead of waiting until your investment matures, you can choose to receive your interest monthly.
What Is a Monthly Interest Payout?
A monthly interest payout means you receive the interest from your investment on a monthly basis, rather than waiting until maturity.
This can be useful if you value regular access to your investment interest or want your investment to provide a periodic cash flow.
With Flexible Payouts, eligible GetEquity investments can give you the option to receive your interest monthly, depending on the terms of the specific investment.
It is important to note that choosing a monthly payout may come with a different interest rate. Always review the terms of the specific investment before making your choice.
What Does Interest at Maturity Mean?
Interest at maturity means you receive your investment interest when the investment reaches its maturity date.
Instead of receiving interest throughout the investment period, you leave your investment untouched until maturity and receive the interest according to the investment terms.
This option may be suitable for investors who do not need regular access to their interest and prefer to wait until maturity.
The key thing to understand is that monthly interest and interest at maturity can have different interest rates, so your choice affects more than just when you receive your money.
Monthly Interest vs Interest at Maturity: What’s the Difference?
The simplest way to understand the difference is to look at when you receive your interest and the interest rate attached to each option.
| Monthly Interest | Interest at Maturity | |
| When is interest received? | Monthly | At maturity |
| Cash flow | Regular access to interest | Lump sum at maturity |
| Interest rate | May be lower because interest is paid out regularly | May be higher because the investment remains invested until maturity |
| Suitable for investors who | Want regular access to interest | Are comfortable waiting until maturity |
For example, an eligible investment may offer:
25% p.a. when your interest is paid at maturity
or
20.64% p.a. when you choose to receive your interest monthly.
On a NGN200,000 investment, choosing the monthly payout option would give you an estimated NGN3,095.85 every month after withholding tax, based on the example above.
The difference in interest rates reflects the different payout structures. With monthly payouts, you receive your interest along the way, while with a maturity payout, your investment remains in place until the end of the investment period.
Your interest rate and payout will depend on the investment and payout option you select.
How Do You Choose the Right Interest Payout Option?
Before choosing a payout option, consider what you want your investment to do for you.
Choose monthly interest if you value regular access to your interest.
If having access to your interest during the investment period is important to you, a monthly payout may better align with your cash flow needs.
Choose interest at maturity if you are comfortable waiting.
If you do not need regular access to the interest and are comfortable leaving your investment untouched until maturity, the maturity option may be more suitable.
Most importantly, look beyond the payout frequency. Compare the interest rate, investment tenure, expected returns and other terms before making your decision.
How to Access Flexible Interest Payouts on GetEquity
Getting started is simple.
- Choose an eligible investment
Browse available investment opportunities on GetEquity. - Enter your investment amount
Enter how much you would like to invest, subject to the investment’s minimum amount. - Turn on “Get paid monthly”
You will see this option on the investment screen before completing your investment. - Review your payout
The app will show you the interest rate and estimated monthly payout after withholding tax. - Invest!
Once your investment is confirmed, your interest will be paid according to your selected payout schedule.
The available payout options and interest rates will depend on the specific investment.
Conclusion
Investing is not one size fits all. With Flexible Payouts, GetEquity gives eligible investors more choice in how they receive their interest.
Whether you prefer regular access to your interest or are comfortable waiting until maturity, the important thing is to understand the terms and choose the option that aligns with your investment needs.
There are also a few things to keep in mind. Flexible Payouts are currently available only on eligible investments. Once you select your payout option and complete your investment, you cannot change your payout option later.
Your monthly payout applies to your interest, not your principal. Your principal remains subject to the investment’s stated maturity terms. The monthly payout displayed in the app is an estimate after withholding tax, and any later top ups into the investment will follow the applicable payout schedule and terms.
Always review the investment details and terms before investing.
Frequently Asked Questions
- What is Flexible Interest Payouts?
Flexible Payouts gives eligible investors a choice between receiving their investment interest monthly or at maturity.
- Can the interest rate differ between the two options?
Yes. The interest rate may differ depending on the payout option and investment terms.
- Can I change my payout option after investing?
No. Once you complete your investment, your selected payout option cannot be changed.
- Where can I access Flexible Payouts?
Log in to GetEquity and look out for the “Get paid monthly” option on eligible investments.
