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What Happens When Bonds Mature

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Friday, August 3, 2018 11:28:02 PM
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Japanese will get angry but the video was funny.. In these days of low returns, fixed rate bonds have for many become the savings vehicle of choice but what happens when the term comes to an end? Confusingly, there are three correct answers to this question. Without one clearly defined system it is essential that you not only remember when the bond ends but also what you have agreed will happen next. Muscle worship Sylvia Waycot, financial expert at Moneyfacts. If the original bond was for five years, so the new one could also be for five years, but the rate may be quite different from five years ago. Until that happens we are left to the mercy of a varied and confusing journey that could end in a loss of money. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street. Terms of Use Privacy Policy.

What Happens When Bonds Mature

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There are many kinds of bonds, but they all have a few things in common. Bonds earn interest that is either paid to you periodically or that accrues, meaning the interest is added to the bond, increasing its value.

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