What is another name for a sinking fund?
Leverage our comprehensive guide to understand what a sinking fund is, how it works, and the different names for a sinking fund that organizations use.
sinking fund
What are the two ways a sinking fund can be handled?
A sinking fund is when a company sets aside money to pay towards a large expense. Find out the different approaches for handling a sinking fund as well as the advantages and disadvantages it presents.
Can sinking fund be refunded?
Find out if a sinking fund can be refunded, and how to properly manage your sinking funds to ensure maximum returns.
Are sinking funds a good idea?
Learn more about sinking funds, their purpose, the different types available, their advantages and disadvantages, as well as tips on setting up a successful sinking fund and suitable investments.
What is the formula for sinking fund?
A sinking fund is a financial strategy used by companies and individuals to set aside money over time for a specific future financial obligation. It’s akin to a piggy bank, where you save small amounts regularly to cater to a large expense in the future. The term ‘sinking fund’ is derived from the concept of gradually ‘sinking’ or reducing the debt or future obligation.