Protecting Your Purchasing Power: A 2026 Guide to TIPS Versus I-Bonds

Inflation still threatens fixed incomes in 2026; this guide explains how TIPS and I-Bonds can help protect your purchasing power.
Protecting Your Purchasing Power: A 2026 Guide to TIPS Versus I-Bonds
TIPS offer tradable income, while I-Bonds provide tax-deferred growth and principal stability. Pla2na/Shutterstock
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A Treasury inflation-protected security (TIPS) and a Series I Savings Bond (I-bond) are two government-backed investments designed to protect your purchasing power when inflation rises. They both adjust with inflation, but work differently.

A TIPS is a marketable Treasury bond whose principal value rises with inflation, and it pays interest twice per year. An I-bond combines a fixed interest rate with an inflation rate, compounding tax-deferred until redemption.

Adam H. Douglas
Adam H. Douglas
Author
Adam H. Douglas is a journalist and writer specializing in personal finance and literature. His recent work explores money management, book reviews, veterinary medicine, and long-term financial planning. He currently resides in Prince Edward Island, Canada, with his wife of 30 years and his dogs and kitties.