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Current Rates

The current investment rates for Series 3 and Series 4 Corporate Notes issued by KH Funding Company, effective as of March 18, 2008. Rates are subject to change without prior notice.

Series 3-Senior Secured Notes	APR	APY
Daily liquidity- Free Checking	4.50%	4.60%
30-Day liquidity upon request	4.75%	4.86%
1 Year Fixed	5.75%	5.92%
3 Year Fixed	6.10%	6.29%
5 Year Fixed	6.35%	6.56%

Series 4-Subordinated Notes	APR	APY
1 Year Fixed	6.50%	6.72%
3 Year Fixed	6.75%	6.98%
5 Year Fixed	7.25%	7.52%

Jumbo Account Bonus Interest:

Accounts over $ 250,000 - Add .15% to APR
Accounts over $ 500,000 - Add .25% to APR
(Fixed term accounts only)
Accounts over $1,000,000 - Add .40% to APR
(Fixed term accounts only)

Interest is Compounded Daily, can be Accrued, Paid Monthly or Quarterly. Free Checking at Bank of America for Daily Liquidity Accounts. Some restrictions may apply.

THIS SALES AND ADVERTISING LITERATURE MUST BE READ IN CONJUNCTION WITH THE PROSPECTUS IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. A COPY OF THE PROSPECTUS MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH THIS OFFERING.

Click here to print the current rate sheet