Treasury Inflation Protected Securities (TIPS)

U.S. Treasury Inflation Protection Securities, or TIPS, provides 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, investors 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.

 

Rates & Terms

  • Increments of $100
  • TIPS are issued in terms of 5, 10, and 30 years
  • TIPS can be held until maturity or sold before maturity

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    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

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    ACAP Trading offers secondary liquidity on TIPS and offerings can be found on B.O.L.T.S.™. To view our Bonds On-Line Trading System™, please click here.

     

    Contact Us:

     

    To find out more, either call our office at (855) 846-ACAP, fill out our brief contact form or email us at [email protected].