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Finance & Banking vocabulary · Interest & Exchange Rates

Maturity

Meaning in finance & banking, with examples

/məˈtʃʊrəti/nounCommon term

In finance & banking, maturity means: The date when a loan, deposit or bond ends and the principal must be repaid, or the length of time until that date.

In Turkish: vade, vade sonu, vade tarihi

How it is used

Used across lending, deposits and treasury. A deposit or bond reaches maturity or is held to maturity, and the maturity date is set in the contract. Banks manage the maturity mismatch between short-term deposits and long-term loans.

Example sentences

  1. Your time deposit reaches maturity on 15 June and will renew automatically.

  2. The average maturity of our loan book is about three years.

Common collocations

  • maturity date
  • reach maturity
  • hold to maturity
  • maturity mismatch
  • at maturity
  • time depositMoney placed in a bank for a fixed period, such as 32 days or one year, at an agreed interest rate. Taking it out early usually means losing some or all of the interest.
  • bondA debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.
  • principalThe original amount of money borrowed or invested, not including interest. Each loan payment usually covers some interest and some principal.
  • liquidityHow easily an asset can be turned into cash without losing value, or how much cash and easily sold assets a bank or company has to meet its payments.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Interest & Exchange Rates

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This page explains English vocabulary for learners. It is not financial advice.