Treasury Inflation-Protected Securities (TIPS)

Treasury Inflation-Protected Securities, or TIPS, provide protection against inflation. The principal of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. When a TIPS matures, you are paid the adjusted principal or original principal, whichever is greater.

TIPS pay interest twice a year, at a fixed rate. The rate is applied to the adjusted principal; so, like the principal, interest payments rise with inflation and fall with deflation.

You can buy TIPS from us in TreasuryDirect. You also can buy TIPS through a bank or broker.  (We no longer sell TIPS in Legacy Treasury Direct, which we are phasing out.)

You can hold a TIPS until it matures or sell it before it matures.

Use TIPS to:

  • Diversify your investment portfolio
  • Supplement retirement income
at a glance
Original Issue Rate: The yield determined at auction.
See rates in recent auctions
Minimum purchase: $100
Maximum Purchase
(in a single auction):
Non-competitive: $10 million
Competitive: 35% of offering amount
(See types of bidding in "Auctions in Depth")
Investment Increment: Multiples of $100
Issue Method: Electronic

Rates & Terms

  • TIPS are issued in terms of 5, 10, and 30 years.
  • TIPS Inflation Index Ratios can be used to calculate the inflation adjustment to principal on previously issued TIPS.
  • TIPS can be held until maturity or sold before maturity.

Redemption Information

  • Minimum Term of Ownership: In TreasuryDirect, 45 days.
  • Interest Earning Period: To maturity

Tax Considerations

  • Interest income and growth in principal are exempt from state and local income taxes.
  • Interest income and growth in principal are subject to federal income tax.

TIPS-Related FAQs

  • What happens to TIPS if deflation occurs?
  • What are the maturity terms for TIPS?
  • How do I know when TIPS will be auctioned?

Want e-mail notification of auction results and upcoming auctions? Sign up for our mailing list.