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RESEARCH CENTER

TIPS: How To Buy

You can buy Treasury Inflation-Protected Securities (TIPS) directly from the U.S. Treasury or through a bank, broker, or dealer.

Buying Directly From the U.S. Treasury

To buy TIPS directly from us, you must have an account in TreasuryDirect. "Open An Account."

By bidding for a TIPS in TreasuryDirect, you:

  • Agree to accept whatever yield is determined at auction
  • Are guaranteed to receive the TIPS you want, in the amount you want

(This is called noncompetitive bidding.)

Submit a Bid in TreasuryDirect

The bid submission process in TreasuryDirect is completely online. Login to your account and click the BuyDirect® tab.  Follow the prompts to specify the security you want, the purchase amount, and other requested information.

NOTE: The current auction schedule doesn't allow for the reinvestment of TIPS.

Payments and Receipts in TreasuryDirect

The price that you pay for a TIPS can include either a premium or a discount, and accrued interest. For a full discussion of the price of a security, see TIPS: Rates and Terms.

When you buy a TIPS in TreasuryDirect, we withdraw the purchase price from the source of funds that you specify, which could be one of your bank accounts or your Certificate of Indebtedness (C of I). When the TIPS matures, we deposit payments into your bank account or your C of I, whichever ever you specify.

Buying Through a Bank, Broker, or Dealer

Banks, brokers, and dealers offer two types of bidding for TIPS:

  • Competitive

You specify the yield you will accept.

Depending on what yield is determined at the auction, you may or may not receive the TIPS you want, and if you receive it, you may receive it in less than the amount you want.

  • Noncompetitive

You agree to accept whatever yield is determined at auction.

You are guaranteed to receive the TIPS you want, in the amount you want.


For more information, consult a bank, broker, or dealer.