sinking fund

Popular Terms
Reserved created by periodically setting aside certain sums in a custodial account (as cash or investment in marketable securities) for future replacement of an asset or repayment of a liability.

Use 'sinking fund' in a Sentence

My dad told me that he was setting aside funds for a sinking fund that we would need at some point.
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The sinking fund was increasing at an unexpectedly high rate which concerned the management about determining the optimal use of our funds.
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You may want to set up a sinking fund to save you just incase everything goes bad at the same time.
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