Deposit Maturity

Deposit Maturity Meaning:
In deposit terminology, the term Deposit Maturity usually refers to the date at which a certificate of deposit or CD reaches the last date of its term. The Deposit Maturity also marks the date when the CD is either redeemed for face value or has its maturity rolled over to a later date. Certificates of Deposit consist of short term debt instruments issued by banks and financial institutions.

Deposit Maturity Example:
For example, the Deposit Maturity date can be on any business day, and it occurs on the last day of the term or the maturity date of a Certificate of Deposit. On this predetermined day, the holder of the Certificate of Deposit gets their principal back after usually having received interest payments during the life of the Certificate of Deposit. Many institutions and individual investors roll over their Certificates of Deposit on the Deposit Maturity date in order to keep drawing interest on their principal investment. Such deposits can range anywhere between $1,000 for a small CD to $100,000 for a jumbo certificate of deposit.