What is the meaning of TIPS?

Treasury Inflation-Protected Securities are inflation-adjusted bonds issued by the U. S. Treasury. The principal is periodically adjusted for inflation, and the semi-annual fixed interest is paid on the adjusted principal. You pay tax annually on the interest payment. A drawback is that you also pay tax annually on the adjustment to the principal even though you don't receive the adjustment until you cash the bond.

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APABarry Goldsmith. (2010). tips. Retrieved September 20, 2026, from http://smartdefine.org/tips/definitions/1165259
ChicagoBarry Goldsmith. 2010. "tips" http://smartdefine.org/tips/definitions/1165259 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, tips, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/tips/definitions/1165259>.
MLABarry Goldsmith. "tips" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/tips/definitions/1165259>
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