Education Investment Plan
EIP is an educational product designed to help parents save toward the secondary and university education of their children. The schools under this investment plan are private secondary schools and universities in Nigeria. EIP is denominated in Naira, and investments are received and made in Naira.
The product shows how much an investor needs to save over a particular time period to achieve an estimated amount for tuition fees.
- Return on investment is benchmarked to the average yield on 91-day, T-bill minus 200 basis points.
- Annuity calculations will be done to determine the amount parents will need to save periodically for school fees. Parents can also decide to save a minimum amount of N100,000.00.
- This product is targeted at children between the ages of 12–21 years old.
- Interest is earned daily with accrued interest paid at the anniversary of each investment into the client’s designated account. There is an option to reinvest interest payable at the discretion of the investor.
- All investors are entitled to quarterly statements and are given online access to view their investments at their own convenience. Investors are also entitled to quarterly newsletters with information on wealth management.
- Withdrawals in the product are restricted to four times a year. Penalty for withdrawals that exceed four times shall attract a charge of an amount not exceeding 50% of the total interest earned on such investment.
Benefits of EIP
- The product is insurance-tied: GTL trustees would pay the insurance premiums subject to an investor having a minimum of N2m in the scheme and will not redeem in whole or part for the period of the insurance cover.