A debt security that an entity purchases and holds until maturity (as opposed to available for sale securities or trading securities). Held-to-maturity debt securities are considered monetary assets. By nature, such securities are either fixed or determinable payments and a fixed maturity, and an entity has the ability and the intention to hold until it reaches maturity date. The held to maturity classification excludes financial assets/ securities that are designated as being measured at fair value through profit or loss (FVTPL), as available for sale, or as loans or receivables. Held-to-maturity securities are typically accounted for using the amortized cost method.

The held-to-maturity debt securities usually include debt instruments, such as notes, bonds, etc. These securities are typically used as a safeguard against interest rate fluctuations, and for diversification purposes (investments, investment portfolios, etc). An entity holding such securities usually realizes limited, low-risk capital gains over a longer holding period.