Who owns treasury inflation protected securities

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. You also can buy TIPS through a bank or broker. Want e-mail notification of auction results and upcoming auctions? Sign up for our mailing list. Department of the Treasury, Bureau of the Fiscal Service. For, say, 10 years or 15 years out, other investments — including dividend-yielding stocks — are generally better tools for beating inflation, Kendall said.

TIPS also aren't necessarily great investments if you're in search of income, because their yields are below non-inflation protected bonds, Boneparth said.

Skip Navigation. Key Points. Your principal gets adjusted to reflect inflation, which can help you keep up with rising prices.

That benefit may be best used in meeting short-term goals vs. Treasury inflation-protected securities, or TIPS, could be an appropriate option. VIDEO After original issue, the securities can be bought or sold in what is known as the secondary market at prevailing market prices through financial institutions and government securities brokers and dealers.

See discussion of liquidity risks. The inflation-adjusted principal amount or the original par amount, whichever is greater, will be paid on the maturity date as specified in the offering announcement. Interest is payable on a semiannual basis on the interest payment dates specified in the offering announcement through the date the principal becomes payable. In the event any principal or interest payment date is a Saturday, Sunday or other day on which the Federal Reserve Banks are not open for business, the amount is payable without additional interest on the next business day.