I-Bonds and TIPS: Protecting Your Cash from Inflation

Series I Savings Bonds (I-Bonds) and Treasury Inflation-Protected Securities (TIPS) are designed to preserve purchasing power.

The I-Bond Variable Rate

The interest rate on I-Bonds is reset twice a year based on the Consumer Price Index (CPI).

TIPS Principal Adjustments

The principal of a TIPS bond increases with inflation and decreases with deflation, ensuring you get the same 'real' value back.

Purchase Limits

I-Bonds have an annual purchase limit (typically $10,000 per person), making them better suited for individuals than institutions.