Treasury Inflation Protected Securities - TIPS

Filed Under » , , ,
Dictionary Says

Definition of 'Treasury Inflation Protected Securities - TIPS'

A treasury security that is indexed to inflation in order to protect investors from the negative effects of inflation. TIPS are considered an extremely low-risk investment since they are backed by the U.S. government and since their par value rises with inflation, as measured by the Consumer Price Index, while their interest rate remains fixed. Interest on TIPS is paid semiannually. TIPS can be purchased directly from the government through the TreasuryDirect system in $100 increments with a minimum investment of $100 and are available with 5-, 10-, and 20-year maturities.
Investopedia Says

Investopedia explains 'Treasury Inflation Protected Securities - TIPS'

Because a TIPS bond's semiannual inflation adjustments are considered taxable income by the IRS even though investors don’t see that money until they sell the bond or it reaches maturity, some investors prefer to get TIPS through a TIPS mutual fund or only hold them in tax-deferred retirement accounts to avoid tax complications.

Purchasing TIPS directly, however, allows investors to avoid the management fees associated with mutual funds. TIPS are also valuable because they are exempt from state and local income taxes.
Search results for

'Treasury Inflation Protected Securities (TIPS)'

  • Treasury Inflation Protected Securities

    http://www.investopedia.com/articles/bonds/07/TIPS.asp
    ... June 07 2007 | Filed Under ยป Bonds. United States Treasury inflation-protected
    securities (TIPS) are a simple and effective way to eliminate one of the most ...

  • Why TIPS Still Make Sense

    http://stocks.investopedia.com/stock-analysis/2012/Why-TIPS-Still-Make-Sense-TIP-IPE-STPZ-WIP-GTIP0119.aspx
    ... extremely low levels. In the case of treasury inflation protected securities
    or TIPS, that yield is now negative. Despite the current ...

  • Curbing The Effects Of Inflation

    http://www.investopedia.com/articles/05/061605.asp
    ... Treasury Inflation-Protected Securities Treasury inflation-protected securities
    (TIPS) offer the safety of the US government, ensuring you'll get your money ...

  • Shield Your Portfolio From Inflation For Real Returns

    http://www.investopedia.com/articles/bonds/08/tips.asp
    ... US, unexpected inflation helped spawn the creation of government issued inflation
    protected securities, called Treasury inflation protected securities (TIPS). ...

  • Hedge Your Bets With Inflation-Linked Bonds

    http://www.investopedia.com/articles/bonds/09/inflation-linked-bonds.asp
    ... Sweden, Canada and Australia, and the United States did not fully re-enter the ILB
    market until Treasury inflation-protected securities (TIPS) were issued in ...

  • Tactical Tips For Bond Investors

    http://www.investopedia.com/articles/bonds/08/credit-invest.asp
    ... for US TIPS, which are inflation protected. Therefore, their yields are based on
    real returns. (For related reading, see Treasury Inflation Protected Securities ...

  • 8 Ways To Lose Money On Bonds Slideshow | Investopedia

    http://www.investopedia.com/slide-show/lose-money-bonds/treasury-protected-securities-deflation.aspx
    ... Treasury inflation protected securities (TIPS) may solve the inflation issue, but
    you can still lose money: - Deflation: With the way values on TIPS are ...

  • Looking Beyond TIPS For Inflation Protection

    http://stocks.investopedia.com/stock-analysis/2010/Looking-Beyond-TIPS-For-Inflation-Protection-TIP-IGE-UDN-DVY1101.aspx
    ... A Negative Yield These inflation worries have come to a head with the recent
    auction of Treasury Inflation Protected Securities (TIPS). ...

  • Introduction To Inflation-Protected Securities

    http://www.investopedia.com/articles/04/091504.asp
    ... type of bonds in Treasury Inflation-Protected Securities.). ... Therefore, both principal
    and interest are inflation-protected. ... Your Bets With Inflation-Linked Bonds ...

  • What is inflation and how should it affect my investing?

    http://www.investopedia.com/ask/answers/156.asp
    ... the long run) by investing in a number of inflation-protected securities such as
    inflation-indexed bonds or Treasury inflation-protected securities (TIPS). ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.51% 0.51%
MMA 0.46% 0.46%
6 Month CD 0.47% 0.47%
1 Year CD 0.75% 0.75%
5 Year CD 1.46% 1.47%
1 Year Jumbo CD 0.67% 0.69%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.60% 4.59%
$30K Home Equity Loan 5.77% 5.76%
$50K Home Equity Loan 5.50% 5.47%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.46% 5.43%
$100K HELOC 4.13% 4.14%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.76%
15 Year Fixed 3.11% 3.02%
1 Year ARM 3.53% 2.78%
30 Year Fixed Jumbo 4.38% 4.39%
5/1 ARM 2.69% 2.68%
3/1 ARM 2.69% 2.63%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.36%
48 Month New Car Loan 3.24% 3.25%
36 Month Used Car Loan 4.36% 4.36%
36 Month New Car Loan 3.13% 3.13%
60 Month New Car Loan 3.34% 3.35%
Rate data provided by Bankrate
Partner Links