16526 W 78th St, Suite 169
Eden Prairie, MN 55346


What You Need to Know About SaverNotes

We do our best to take the guesswork out of investing, with an easy, no-hassle strategy to earn money based on your individual risk tolerance. Check out our most common FAQs to decide whether SaverNotes is right for you.  

Who can invest in SaverNotes?

Any Minnesota resident over the age of 18.

What is a renewable unsecured subordinated note?

A renewable unsecured subordinated note is a promise to pay the principal and interest on the note to the holder by SaverNotes. By purchasing a note, you are lending money to SaverNotes. The note represents SaverNotes’ obligation to repay your loan with interest. When the loan matures, you can elect repayment of the note and your investment will be returned to you along with any accrued but unpaid interest. However, if neither you nor SaverNotes elect repayment at maturity, the note automatically renews for another term and continues to earn interest at the current applicable rate. SaverNotes is issuing the notes as a new financing.

What are the available terms and interest rates?

We offer 2, 3, and 5-year notes yielding 3, 4, and 6 percent interest. The minimum investment is $2,000 or $25,000 for a self-directed IRA. Depending on SaverNotes' capital needs, certain note terms may not always be available. Interest rates are determined at the time a note is purchased or renewed by its term to maturity and the total principal amount of all SaverNotes notes then owned by you. The notes earn incrementally higher interest rates when the total principal amount of notes you own reaches $100,000 and $250,000+. The Interest Rate page on this web site lists the current interest rates and the effective net annual yields for the available note terms at different portfolio principal amounts. The company files a prospectus supplement with the State of Minnesota each time its interest rates change.

How is the interest calculated and paid?

Interest is compounded daily at an annual rate based on a 365 or 366-day year. Interest payments are made via direct deposit into the account you specify on the Direct Deposit form. Interest is paid quarterly. For the months of January, February and March of each year the interest is paid on or before April 30. For the months of April, May and June of each year the interest is paid on or before July 31. For the months of July, August and September of each year the interest is paid on or before October 31. For the months of October, November and December of each year the interest is paid on January 31 of the following year. The additional interest rate “kicker” which represents 10% of the annual profits of SaverNotes is paid within 30 days of our tax filing. The “kicker” is calculated as 10% of the net profits of SaverNotes and allocated pro rata to each account.

Will my interest rate change during the note term?

No. The interest rate is fixed on the note issue date and remains unchanged until the note matures. If you choose to renew your note at maturity, the interest rate for the new term will be the rate then being offered to holders with similar portfolio amounts for notes with the same term; or the rate specified by SaverNotes if the company is not then issuing new notes with the same term.

How do I purchase a note?

Carefully read the prospectus. If you conclude that a renewable note is an appropriate investment for you, complete a Subscription Agreement and apply on-line is the best and most cost-effective method of investment or write a check payable to SaverNotes for the full amount of your investment. Mail your check, subscription agreement to:


16526 W. 78th St. #169
Eden Prairie, MN 55346

You can purchase multiple notes with different terms for the same investor by filling in investment amounts for more than one term. However, if you want to purchase multiple notes for several investors (for example, as custodian for your children), you need to complete separate subscription agreements and direct deposit forms for each investor.

What is the minimum amount that I can invest?

$2,000 or $25,000 for a self-directed IRA. There is no maximum amount and odd amounts, such as $107,592.68, are acceptable. If you purchase multiple notes with different terms or multiple notes for different investors, the principal amount of each note must be at least $10,000. You may not aggregate several smaller notes to meet the $10,000 minimum. Please see the next section for qualified money such as IRA, SEP, 401(k), 403(b) or Keogh.

Can I purchase a note in my IRA, SEP, 401(k), 403(b) or Keogh?

Yes, if your custodian allows investments in securities that are not DTC eligible. Your investment custodian should complete the Subscription Agreement and the entity that will own the note should be identified next to the Form of Ownership box entitled ‘Other Investor’. The address of the custodian should be listed as the primary address. Your address should be listed as the secondary address so you can receive copies of the correspondence sent to the custodian. The custodian should issue the check for your investment. The minimum amount for these funds is $25,000.

What happens after I invest?

After your Subscription Agreement is accepted, you will receive a written confirmation of your investment that includes pertinent information about the notes you purchase such as the note number, the issue date, interest payment schedule and the interest rate. The notes are issued in book entry form, which means that no physical note is created. Evidence of your ownership is provided by the confirmation.

You will also receive quarterly statements that summarize the activity in your account and a Form 1099 INT each January that lists the interest income that was reported to the Internal Revenue Service for the previous year. Cornerstone Private Asset Trust Company will be handling all the paperwork and we expect during 2013 to go to paperless statements with on-line access for all investors.

Are only cash interest payments reported to the Internal Revenue Service?

No, all accrued interest is reported annually to the Internal Revenue Service. Depending on your interest payment schedule, your reported interest income could exceed the sum of your cash interest payments in some years. In this event, you would be liable for income taxes on the accrued interest before you were paid the same amount in cash.

Do I pay a commission to purchase a note?

No. You never pay a commission to purchase, renew or redeem a note.

What happens when my note matures?

You will receive written confirmation via email prior to the maturity date that your note is coming due. An interest rate supplement will be if lists the current interest rates and effective net annual yields for the available note terms and portfolio principal amounts. If the notes are still available and SaverNotes has not elected to repay your note, you will have the opportunity to choose one of the following options:

You can do nothing, and your note will automatically renew for a term equal to the original term at the interest rate then being offered to other holders with similar note portfolios for notes with the same term. If notes of the same term are not then being offered, the interest rate upon renewal will be the rate specified by SaverNotes on or before the maturity date or the rate of the existing note if no such rate is specified.

You can elect repayment of your note and the principal amount plus any accrued but unpaid interest will be returned to you. If you choose this option, your note will not earn any interest on or after the maturity date.

You can elect repayment of your note and use the proceeds to purchase a new note with a different term or principal amount. The issue date of the new note will be the maturity date of the old note. You will need to complete a new Subscription Agreement to buy the new note.

If your note pays interest only at maturity, you can receive the accrued interest that your note has earned during the term just ended and allow only the principal amount of your note to renew for the same term at the interest rate in effect at the time of renewal. If notes with the same term are not then being offered, the interest rate upon renewal will be the rate specified by SaverNotes on or before the maturity date or the rate of the existing note if no such rate is specified.

Can I sell my note prior to maturity?

No. There is no active secondary market for the notes. The notes are not negotiable instruments and cannot be transferred without the prior written consent of SaverNotes. If you decide to liquidate your investment prior to maturity, you would have to request that SaverNotes either consent to a transfer or repurchase your note early, which would subject you to the penalty and limitation described earlier.

What are the risks related to the notes?

You could lose the entire principal amount of your note plus all accrued but unpaid interest if SaverNotes encounters serious financial difficulties. Please read the section of Prospectus entitled ‘Risk Factors’ for a discussion of the material risks related to the notes. Whether the notes are appropriate for you depends on your risk profile, return objectives, investment experience, the diversity of your investment portfolio and your ability to withstand a loss of interest or principal. The notes may not be suitable for all investors.

Are the notes insured?

No. The notes are not insured by the Federal Deposit Insurance Corporation, the Securities Investor Protection Corporation or any other agency or company. They are obligations of SaverNotes only.

Are the notes rated?

SaverNotes has not requested a rating for the notes. However, third parties may independently rate them.

Are the notes secured by any collateral?

No. The notes are unsecured. Note holders do not have a lien on any SaverNotes assets.

What is the priority of the notes?

The notes are subordinate to all other existing and future secured, unsecured, senior and subordinate debt obligations of SaverNotes. If the company encounters serious financial difficulties, principal and interest payments to higher priority creditors would take precedence over payments to the note holders. The company currently has substantial debt and is likely to incur or issue additional debt that would rank senior in priority of repayment to the notes. See the Prospectus for more details.

Can SaverNotes prepay my note prior to maturity?

Yes. After giving you thirty days written notice via email, SaverNotes can repay your note at par prior to maturity without your consent. At that time, you would receive your original principal amount and all accrued but unpaid interest earned through the repayment date.

How long has SaverNotes been issuing renewable notes?

We began offering renewable notes in January of 2013.

What if I have more questions?

Questions about the notes should be directed to 612-868-9187.

Learn how we can help you maximize your investment while minimizing risk.

What Our Clients Have to Say

Dave with SaverNotes has been a wealth of knowledge. We wanted to find a new way to invest with a high return and we found it. We were provided with all the information we needed right away and he made the whole process so smooth.

– Brian W.