Inflation-protected bonds, also known as TIPS (Treasury Inflation-Protected Securities), are a type of bond issued by the U.S. government that provides investors with protection against inflation. They are designed to maintain their purchasing power over time by adjusting the principal value of the bond based on changes in the Consumer Price Index (CPI).
TIPS can be an important part of a diversified investment portfolio, as they can help to reduce the impact of inflation on your savings. They are also a relatively safe investment, as they are backed by the full faith and credit of the U.S. government.