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

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 a savings account dedicated to a particular expense that you fund gradually through regular payments.

From Seattle Times • Mar. 10, 2022

“As part of our financial modelling for each property, we have put in significant provisions for a sinking fund to cover void periods,” Harvey told IFR last month.

From Reuters • Jun. 24, 2020

Originally I was in debt only £10,000; now I find myself indebted altogether £12,000; so that instead of possessing a sinking fund, as I had hoped, I am positively so much more in debt.'

From Letters of David Ricardo to Thomas Robert Malthus, 1810-1823 by Ricardo, David

Related Words

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