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

And if you haven’t already, start saving for the holidays by setting up a sinking fund.

From Salon • Nov. 26, 2024

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

If you have leftover money in a sinking fund, either keep it there so you’re ahead of the game for next year, reallocate it to the next priority or pad your emergency fund, if needed.

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