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

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

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

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

As the pandemic has strained Spelthorne’s finances and led to a rise in rent arrears, the council has moved to tap the sinking fund.

From Reuters ● Jun. 24, 2020

The establishment of a sinking fund for payment of interest and amortization of these bonds frequently constitutes a very heavy drain upon the residents of the district.

From A Living from the Land by Duryee, William B.

Related Words

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