TREASURY INFLATION PROTECTED SECURITIES - TIPS

Treasury security indexed to inflation which aims to protect investors from the negative effects of inflation by removing the impact of inflation on interest and principal payments, as gauged by the Consumer Price Index. Backed by the US government, such securities are considered an extremely low-risk investment and its par value increases with inflation while the interest rate remains fixed. Interest is paid semi-annually and can be obtain directly from the government via TreasuryDirect. It has $100 increments with a $100 minimum investment, which is available in 5-year, 10-year, and 30-year maturities.