Maturity Date

Maturity date

Usually used for bonds. Date that the bond finishes and is paid off. Date on which the principal amount of a note, draft, acceptance, bond, or other debt instrument becomes due and payable.

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Maturity Date

The date on which the issuer of a debt instrument must repay the principal in total. For example, a bond with a period of 10 years has a maturity date 10 years after its issue. The maturity date also indicates the period of time during which the lender or bondholer will receive interest payments. It is important to note that, despite the existence of a maturity date, many debt securities are callable and the issuer may redeem them before the maturity date under some circumstances.

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Maturity date. A bond or other loan that must be repaid comes due on its maturity date. On that date, the full face value of the bond (and sometimes the final interest payment) must be paid in full to the bondholder.

Certificates of deposit (CDs) also have maturity dates on which you may withdraw the principal and interest without penalty or roll over the money into a new CD.

Other debt instruments, such as mortgage-backed securities, pay back their principal over the life of the debt, similar to the way a mortgage is amortized, or paid down. While these instruments also have a maturity date, that date is when the last installment payment of the loan as well as the last interest payment is due.