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

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Example Sentences

See Examples For:

sinking fund

He says his sinking fund contributions dropped to £124 per year when Curo took over his building, but then increased dramatically to £1,767 when a new roof was needed.

From BBC ● Oct. 22, 2026

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

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 holds money that’s earmarked for a specific goal or expense.

From Seattle Times ● Mar. 1, 2022

The Irish Parliament will have power to raise loans on the security of the “transferred” revenue, sufficient provision being made for interest and sinking fund.

From The New Irish Constitution by J. H. Morgan

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Related Words

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

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