Treasury inflation protected securities (TIPS)

A US Department of Treasury product which increases with inflation and decreases with deflation, as measured by the Consumer Price Index When a TIPS matures, you are paid the adjusted principal or original principal, whichever is greater 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 TIPS are the same as CIBs.