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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 may 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 may be made at each interest adjustment date and during a 14-day grace period, without penalty; penalty may apply if redeemed before the interest adjustment date
  • Interest is available as requested or monthly, quarterly, bi-annually, annually
  • 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 Prospectus

VRSD Supplement (Updated Weekly)

DEB Prospectus Supplement (Dated May 14, 2018)

Variable Rate Subordinated Debenture

Our Variable Rate Subordinated Debentures offerings are available at a minimum investment of $500.

Current rates for the week of July 12, 2018 through July 18, 2018

Interest Adjustment Period (a)Effective Yield (b)Interest Rate (c)Minimum Investment Amount
1 month1.511.50$500
3 Months1.511.50$500
6 Months2.022.00$500
1 Year2.282.25$500
2 Years2.792.75$500
4 Years3.053.00$500

(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.

1st Franklin Financial Investment Center

P: (706) 886-7571 or (800)-282-0709
Hours of Operation:
Monday-Friday: 8:30am-5:00pm
Saturday: 8:30am-12:00pm (Drive-thru Only)

Approval and actual loan terms depend on your ability to meet our credit criteria (including annual income, debt ratios, and credit report and history) and the availability of collateral. Annual percentage rates vary depending on your credit profile and state restrictions. For example, a customer with a good credit history and minimum gross income requirements may qualify for a loan with an APR of 21.99%. Maximum APR’s vary by state. 1st Franklin Financial Corporation, NMLS #141654, Georgia Residential Mortgage Licensee #5656. Active duty military, their spouse or dependents covered by the Military Lending Act (“MLA”) may not pledge a vehicle as collateral.