Variable Rate Subordinated Debentures
Investments that earn a specific rate of interest over time
Our Variable Rate Subordinated Debentures pay a specified rate of interest over a specific time period and repay the principal investment upon maturity. Variable Rate Subordinated Debentures mature four (4) years from the date of issue, and the interest rate adjusts periodically. The interest rate offered on subordinated debentures depends on the interest adjustment period you select from our range of offered periods. Interest rates adjust at each interest adjustment period. You can redeem a Variable Rate Subordinated Debenture at any interest adjustment period without penalty.
Subordinated Debentures are popular with individuals seeking investments with competitive interest rates over a set period of time. Key features include:
- $500 minimum investment
- Mature four (4) years from date of issue
- Automatically renew upon original maturity
- Interest adjustment periods from 1 month to 4 years
- Redemption right in connection with interest adjustment dates (redemption with penalty at other times)
- Interest compounded daily
Our Variable Rate Subordinated Debentures are unsecured subordinated obligations and offers are made only by prospectus. Read the complete Variable Rate Subordinated Debenture Prospectus details below (GA & SC Residents Only) now or contact us with any questions.
Variable Rate Subordinated Debenture*
Our Variable Rate Subordinated Debentures offerings are available at a minimum investment of $500.
Current rates for the week of February 16, 2017 through February 22, 2017
|Interest Adjustment Period (a)||Effective Yield (b)||Interest Rate (c)||Minimum Investment Amount|
(a) At the end of this period, the interest rate will be adjusted. Debentures mature four years from their date of issue, subject to earlier redemption as provided for therein. Redemption at any other time other than during the grace period is at the discretion of the Company and is subject to an interest penalty. Absent redemption by the holder at maturity, the term of the Debenture will be extended for one four-year period, subject to the same redemption rights.
(b) Compounded daily based on a 365/366 day year.
(c) Interest is earned daily and will be paid promptly upon a holder’s request. Otherwise, principal and interest are payable at maturity.
This is not an offer to sell, or the solicitation of an offer to purchase these securities. Any offer or sales of Senior Demand Notes and Variable Rate Subordinated Debentures will be made only by a Prospecus. We are not a bank. Investments offered by 1st Franklin Financial Corporation are not bank deposits or obligations and are not insured by the FDIC, SIPC or any other federal or state agency. Investors must rely solely on the Company’s ability to pay principal and interest on its invesment securities.