sinking fund

noun

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

sinking fund

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

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

Word History and Origins

Origin of sinking fund¹

First recorded in 1715–25

Example Sentences

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

The company will set up a sinking fund governed by an advisory committee for the remediation effort, which will be reviewed when depleted.

From Reuters

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

Related Words

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