Sinking Fund

A fund in which equal monthly or annual deposits, with compound interestInterest that is calculated on the original principal plus all interest accrued to that point in time., accumulate to a predetermined amount at a calculated time, for the purposes of paying a debtThat which is due from one person or another; obligation, liability. or replacing improvementsAn addition to land which costs labor or capital (buildings, pavements, etc.), more or less permanently.

Sinking Fund

Fund set asideSee Withdrawal Arrangements from the incomeMoney you make from a job or from business or property. from propertyThe rights or interests a person has in the thing he owns; not, in the technical sense, the thing itself. which, with accrued interestThe interest on a student loan that begins to accrue (accumulate) after a student completes school., will eventually pay for replacementThe substitution of Health Insurance coverage from one policy contract to another. of the improvementsAn addition to land which costs labor or capital (buildings, pavements, etc.), more or less permanently.