Maturity is the date on which the principal balance of a financial instrument is due. This term can apply to loans, deposits, bonds, interest rates and commodity swaps, or other financial instruments. After this date, the life of the financial instrument or transaction comes to an end, and it either ceases, or the borrower must seek to extend it.
- Minimum Balance
A minimum balance refers to the minimum dollar amount that must be on deposit in a consumer's bank account to qualify them for a type of service benefit. These service benefits can include keeping the bank account open, receiving interest, or the waiving of service charges.
- Minimum Payment
The minimum payment refers to the minimum dollar amount that a customer must pay each month on their revolving credit account. Lenders calculate this payment amount as a small percentage of the total credit balance on a loan, line of credit, or other debt types. Failure to meet the minimum payment can result in late fees and a poor repayment history on the customer's credit report.
- Mutual Fund
A mutual fund is an open-ended investment trust or company made up of a pool of funds from many investors. A professional money manager operates the mutual fund. They allocate the shareholders' funds to invest in stocks, bonds, or other securities to produce capital gains or income for the investors. In return for their contribution of fees and expenses, the investors get a stake in all investments, allowing them to obtain a professionally-managed, diversified portfolio. Each shareholder participates proportionally in the losses or gains of these funds.