What is another word for "sinking fund"? (2024)

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What is another word for "sinking fund"? ›

sinking fund (noun as in nest egg) Strongest matches. cache reserve fund savings savings account stash stockpile.

(a) the sinking fund (sometimes called a capital works fund) and, (b) the administrative fund. So what is the difference between these two funds? The sinking fund accumulates the monetary contributions from the property owners to be set aside for the purpose of meeting long-term maintenance costs.

A sinking fund is typically listed as a noncurrent asset—or long-term asset—on a company's balance sheet and is often included in the listing for long-term investments or other investments. Companies that are capital-intensive usually issue long-term bonds to fund purchases of new plant and equipment.

emergency funds. While they may seem similar, there are differences between sinking funds and emergency funds. An emergency fund is for unexpected expenses, like job loss and medical emergencies.

Often used interchangeably with the term reserve fund, the term sinking fund was originally used specifically to refer to money collected to cover the cost of future large individual items of expenditure such as a new roof, or replacement lift.

A sinking fund is a type of fund that is created and set up purposely for repaying debt. The owner of the account sets aside a certain amount of money regularly and uses it only for a specific purpose.

recession (noun as in reversal of action; reduction of business activity) Strongest matches. bankruptcy collapse decline deflation downturn hard times inflation shakeout slide slump stagnation unemployment.

Amount of depreciation is calculated with the help of sinking fund tables and hence depreciation fund method is also known as sinking fund method.

What is a sinking fund call? ›

A sinking fund call is a provision that allows a bond issuer to buy back its outstanding bonds before their maturity date at a pre-set price. The money that is used for the buyback comes from a sinking fund, an amount that is set aside from the issuer's earnings specifically for use in security buybacks.

A sinking fund can also be set up by private landlords; simply by putting aside a certain amount of the rent received each month. When calculating the amount to be contributed, it is common for landlords to put aside anywhere in the region of five to ten percent of the rental income to allow to be used.

Banks that let you designate “envelopes” for different goals within one savings account are also especially useful for sinking funds. Or, if you're a spreadsheet kind of person, you could just put all the money into one account and keep track of how much you have saved toward each expense manually.

Sinking funds are savings you set aside for specific planned expenses, like a vacation or home renovation. Emergency funds are savings for unplanned expenses, like a job loss or unforeseen medical procedure.

A sinking fund is for those expenses you know are coming and can plan ahead for—like your kid's soccer season or the bridesmaid dress you need for your friend's wedding. An emergency fund, on the other hand, is for unexpected expenses.

A sinking fund is a way of saving money by putting away a set amount each month for the purpose of being used at a later date. It means you are saving small amounts over a set period of time instead of needing to find money all in one go.