Bond maturity dates are set when the bond is issued, and you get your principal back on that exact date

A bond's maturity date is fixed from the moment it is created. When you buy a bond, you are buying a contract that promises to return your principal on a specific date — whether that is 3 months, 10 years, or 30 years from now. The length of time between purchase and maturity is called the term of the bond. You know this date before you buy, and it does not change based on market conditions or interest rates.

The maturity date is printed on the bond's prospectus or fact sheet. For example, a Treasury bond issued in 2024 with a 10-year term matures in 2034. A municipal bond issued in 2020 with a 20-year term matures in 2040. You can sell the bond before maturity if you need the money, but the issuer will not pay you back your principal until the maturity date arrives.

Key Takeaways

  • Bond maturity dates are set when issued and do not change; you receive your principal back on that exact date regardless of market movements.
  • Short-term bonds typically mature in 1 to 5 years, intermediate bonds in 5 to 10 years, and long-term bonds in 10 to 30 years or more.
  • You can sell a bond before maturity, but you will receive whatever the market price is at that moment, not the face value.
  • Interest payments (coupons) are usually made twice a year while you hold the bond, and your final coupon payment arrives on or near the maturity date.

Common maturity lengths for different bond types

The maturity you choose depends on your savings goal and how long you can lock up your money. Treasury bonds come in several standard terms: 4-week, 13-week, and 26-week Treasury bills; 1-year, 2-year, 3-year, 5-year, 7-year, 10-year, and 20-year Treasury notes; and 30-year Treasury bonds. Each has its own interest rate, and longer terms usually pay more interest.

Corporate bonds vary widely by company and debt offering, but commonly mature in 5, 10, or 20 years. Municipal bonds often have terms of 10 to 30 years. Savings bonds (Series I and Series EE) have different rules: they earn interest for 30 years, but you can cash them in after 1 year (with a penalty if you cash before 5 years).

Certificates of deposit (CDs), which are similar to bonds in structure, typically mature in 3 months, 6 months, 1 year, 2 years, 3 years, or 5 years. Some banks offer longer or shorter terms. If you withdraw before the maturity date, you usually pay an early withdrawal penalty.

What happens on the maturity date

On the maturity date, the bond issuer sends you your principal in full. If you hold the bond to maturity, you receive exactly the face value you paid (or the price you paid if you bought it on the secondary market). This payment typically arrives within a few business days of the maturity date.

Your final interest payment is usually included with the principal. For example, if you own a bond that pays interest twice a year and matures on June 15, you will receive your last coupon payment plus your full principal on or shortly after June 15. After that date, the bond no longer exists and earns no more interest.

Selling before maturity changes what you receive

If you need money before the maturity date, you can sell your bond on the secondary market. However, the price you receive depends on current interest rates and market demand, not on the maturity date. If interest rates have risen since you bought the bond, you will likely receive less than face value. If rates have fallen, you may receive more.

This is why holding to maturity matters: it guarantees you get your full principal back on the stated date. Selling early means accepting whatever the market will pay at that moment. The longer the bond's remaining time to maturity, the more its price will swing with interest rate changes.

How interest payments work while you wait

Most bonds pay interest twice a year (called a coupon payment) until maturity. The amount is fixed when the bond is issued. For example, a $10,000 bond with a 4% annual coupon pays $200 per year, usually split into two $100 payments six months apart.

These payments arrive on schedule regardless of whether you plan to hold the bond to maturity or sell it early. If you sell the bond between coupon dates, you typically receive accrued interest from the last payment date up to the sale date, in addition to the sale price. This protects you from losing interest you have earned.

Maturity dates and your savings strategy

Choosing a maturity date is part of matching the bond to your goal. If you need the money in 3 years, a 3-year bond or shorter makes sense because you know exactly when you will receive your principal back. If you are saving for retirement 20 years away, a longer-term bond may offer higher interest to compensate for the longer wait.

Some savers use a bond ladder — buying bonds with different maturity dates so that some mature each year. This spreads out when you receive your principal and lets you reinvest at whatever rates are available at each maturity date. A ladder also reduces the risk of being forced to sell at a bad time if you need cash.

Early redemption and callable bonds

Most bonds mature on their stated date and cannot be called in early. However, some bonds — particularly corporate and municipal bonds — are callable, meaning the issuer can pay you back before the maturity date if interest rates fall. The prospectus will state whether a bond is callable and when the issuer can call it.

If a bond is called, you receive your principal plus any accrued interest, but you lose the higher interest rate you were counting on. Callable bonds usually pay slightly higher interest to compensate for this risk. Always check the prospectus to see if a bond is callable before you buy.

Frequently Asked Questions

Can a bond mature early?

Most bonds cannot mature early unless they are callable bonds, which allow the issuer to pay you back before the stated maturity date. Savings bonds are an exception — you can cash them in after 1 year, though you will pay a penalty if you cash before 5 years. Check your bond's prospectus to see if early redemption is an option.

What if I need money before my bond matures?

You can sell the bond on the secondary market, but you will receive the current market price, not the face value. If interest rates have risen, the price will be lower. If you can wait until maturity, you will receive your full principal back regardless of rate changes.

Do I have to hold a bond until maturity?

No. You can sell a bond at any time before maturity. However, selling early means accepting the market price at that moment. Holding to maturity guarantees you receive the full face value on the stated date.

How do I know when my bond matures?

The maturity date is listed on your bond's prospectus, confirmation statement, or account statement. You can also contact your broker or the issuer directly. Most bonds show the maturity date in the format "matures [month/day/year]."

What happens if I forget to cash in my bond on the maturity date?

If you hold the bond through a broker or bank, they typically deposit your principal and final interest payment automatically. If you hold a physical bond, contact the issuer or your bank to collect your payment. There is usually no deadline, but you should not delay — the issuer stops paying interest after maturity.