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

See Examples For:

sinking fund

She does this by contributing a little bit of money every month into a "sinking fund" - a pot of money set aside for a specific purpose.

From BBC ● Jul. 24, 2026

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

Let’s take the HOA example: If annual dues are $500 and you have six months to save, you need to put about $83 a month in your sinking fund.

From Seattle Times ● Mar. 10, 2022

The company will set up a sinking fund governed by an advisory committee for the remediation effort, which will be reviewed when depleted.

From Reuters ● Feb. 8, 2022

The interest was paid on both funds in almost the whole amount, but the sinking fund was not kept up.

From The United States and Latin America by Latane, John Holladay

Related Words

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