sinking fund

American  

noun

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

---

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

---

sinking fund Cultural  

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

---

Etymology

Origin of sinking fund

First recorded in 1715–25

---

Example Sentences

See Examples For:

sinking fund

Rice said that while there is "some need" for a sinking fund, it was "devastating" for residents.

From BBC ● Oct. 8, 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 is different from other kinds of savings accounts — like an emergency fund or a traditional savings account — in a few ways.

From Seattle Times ● Mar. 10, 2022

It is to be regretted, that the sinking fund in this country is only such in name; for there is no excess of revenue above expenditure.

From On The Principles of Political Economy, and Taxation by David Ricardo

Random Word

Spin the wheel and learn a new word!

---

Related Words

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

---