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

While the bulk of the savings should still go toward retirement, a share can also go to other so-called sinking funds for intermediate-term goals, such as a car or a down payment for a home.

From MarketWatch

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

From Salon

Some donors are funding candidates and state parties directly, while others are sinking funds into state-level groups that are pushing out direct mail and digital ads.

From Washington Post

Just keep in mind: Put money into sinking funds based on priority and necessity.

From Seattle Times

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

From Seattle Times

Related Words

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