sinking fund

American  

noun

1. a fund to extinguish an indebtedness, usually a bond issue.

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sinking fund British  

noun

1. a fund accumulated out of a business enterprise's earnings or a government's revenue and invested to repay a long-term debt or meet a depreciation charge

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sinking fund Cultural  

1. A fund into which companies or governments place money to redeem their bonds and other forms of indebtedness.

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Etymology

Origin of sinking fund

First recorded in 1715–25

Example Sentences

To grow your money before the holiday rush, consider parking your sinking fund in high-yield savings accounts that often let you earn up to 5% APY.

From Salon • Nov. 26, 2024

A sinking fund is essentially a savings account you put aside for specific future expenses — holiday spending, in this case.

From Salon • Nov. 26, 2024

A sinking fund is a savings account dedicated to a particular expense that you fund gradually through regular payments.

From Seattle Times • Mar. 10, 2022

It used £10m of the surplus to add to its general budget, on top of the £14m it gets from tax, rates and grants, and put the remainder into a rainy-day sinking fund.

From Reuters • Jun. 24, 2020

The extinction of a debt, usually by means of a sinking fund; also, the money thus paid.

From Webster's Unabridged Dictionary by Webster, Noah

Related Words

• cache
• reserve fund
• savings
• savings account
• stash
• stockpile