Maturity is the agreed-upon date on which the investment ends, often triggering the repayment of a loan or bond, the payment of a commodity or cash payment, or some other payment or settlement term. For example, if you buy a bond with a ten-year maturity date, that means the issuer agrees to pay back your principal plus interest in ten years. If you're holding that bond when it matures, you'll get your money back plus any interest that's accrued.There are all sorts of different types of maturity dates out there - from overnight to 30 years - so investors can choose investments with maturities that fit their needs and timelines. And while some investors may shy away from longer-term investments because they don't want to tie up their money for too long, others may see them as an opportunity to lock in low rates for an extended period of time.No matter what your investment goals are, understanding maturity dates is important so you know when your money will be coming back - and what kind of return you can expect.
