How do you calculate the maturity value of a certificate of deposit?

For some certificates of deposit (CD) and other investments, all of the interest is paid at maturity. If all of the interest is paid at maturity, each of the interest payments may be compounded. To calculate the maturity value for these investments, the investor adds all of the compounding interest to the principal amount (original investment).

What is interest at maturity?

ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability. Interest at maturity is offered with many bonds or investments, and it means that the entire accrued amount of interest will be paid at the maturity date of the investment.

What is the maturity date of a bond?

The maturity date of a bond is the date that the issuer must repay the face amount. In some cases, the face amount and all of the interest earned is repaid on the maturity date. All of the details of the bond are listed on a bond certificate. Today, bond certificates are issued in electronic form.