Treasury Inflation-Protected Securities (TIPS) are a type of U.S. Treasury bond that is designed to protect investors from inflation. TIPS are issued with a real rate of return, which is the rate of return above inflation. This means that if inflation is higher than expected, the value of TIPS will increase to offset the loss of purchasing power. TIPS are a popular investment for investors who are looking for a safe and stable way to grow their money over time.
There are a few different ways to buy TIPS. You can buy TIPS through a broker, a bank, or directly from the U.S. Treasury. If you buy TIPS through a broker, you will need to pay a commission. If you buy TIPS through a bank, you may be able to get a lower interest rate. If you buy TIPS directly from the U.S. Treasury, you will not have to pay a commission, but you will need to have a TreasuryDirect account.