Fixed Income FAQs:
Bond and CD Maturities

In general, bonds and CDs have a specific maturity date, and sometimes call features, when the bond's or CD's original principal will be returned to you, along with any interest earned.

  • What is the maturity date of my bond or CD?

    The maturity date of your bond or CD is the day where the principal, or face value, of your bond or CD will be returned to you, along with any final interest payments that you are scheduled to receive.

  • Where can I find the maturity date of my fixed income security?

    Typically, you can find this information at the end of the description of the CD or bond when viewing your Positions page. For example, “ABC Bank 4% 07/01/2033.” You can also click on the bond or CD and choose “Research”, where the maturity date is listed under the “Details” section.

  • What action do I need to take when my bond or CD matures?

    You are not required to take any action before or after your bond or CD matures. When a bond or CD matures, the principal, or face value amount, will be deposited into the cash core position in your account, along with any final coupon, or interest, payments that you are due to receive. Once available, you may reinvest the cash, withdraw it, or leave it in the account.

  • What happens to my money when my bond or CD matures? Where does it go?

    When a bond or CD matures, the principal value of the security will be returned to you and will be added to your “core” position, where your cash is kept. If the position is signed up for Fidelity’s Auto Roll Service, the money will be used to automatically purchase a new CD or Treasury with a similar strategy or attributes, including period, coupon, coupon frequency, call protection, etc.

  • Is the cash available to me on the same day my bond or CD matures?

    The principal amount of your matured bond or CD is paid to your account once Fidelity receives the funds from the issuer. Typically, this happens on the bond or CD’s maturity date, and the cash is available for you to reinvest or withdraw that same day. On occasion, however, Fidelity may not receive the funds on that date. If that happens, you will continue to see the bond or CD listed in your account positions until Fidelity receives the funds to pay out for the maturity.

  • I didn’t get my interest payment yet. When will I see my money?

    In general, Fidelity pays bond and CD interest to your accounts as soon as we receive the funds from the issuer. Typically, this happens on the specified coupon payment date. At maturity, when a bond or CD that has a coupon rate greater than zero matures, you will receive the maturing principal and final interest payment as two separate payments into your account. If you have not yet received a payment that you expect, rest assured that Fidelity will allocate the payment to your account as soon as we receive it.

  • My bond or CD is maturing soon and I want to buy another one. How do I do that?

    Once your bond or CD matures and your cash is available in your account, you can use that cash to buy another bond or CD. If you want to place a buy order for a new bond or CD with intent to use the principal from a bond or CD that is maturing soon, you may be able to do so, as long as you have enough cash or margin buying power available to cover the purchase until your current bond matures. To research a replacement bond or CD click here.

  • Fidelity sent me a message saying I have a bond or CD redemption coming soon. What does this mean?

    To keep you informed about upcoming bond and CD maturities, Fidelity sends notifications to you via e-mail to remind you when you have a bond or CD that is going to mature soon. You can manage your alert preferences here.

  • I received a notice that my bond or CD is going to be called. What does that mean?

    Unless your bond or CD is call protected, there is always the possibility that the issuer could “call” it back before maturity date, in accordance with the stated call schedule. This means that the principal could be returned to you earlier than the maturity date, along with any final coupon interest that you have accrued but not yet been paid. When this happens, the principal and any interest would be paid into the cash core of your account.

    You can view call details by clicking on the description of a bond or CD to view additional details. In many cases, a specific call schedule of possible dates it could be redeemed early will be displayed, along with the corresponding call price as a percentage of the principal value.