Define: TIPS

UK Accounting Glossary

Definition: TIPS



Advertisement



Full Definition of TIPS


TIPS are Treasury Inflation-Protected Securities. As with other notes and bonds, holders of TIPS receive periodic interest payments and the return of their principal at the end of the term. What makes TIPS different from normal notes and bonds is that the return is automatically adjusted for inflation. Using the Consumer Price Index (CPI) as a benchmark, each TIPS interest payment is adjusted to reflect changes in the CPI. At the end of the term, there is a final adjustment to the principal returned to the TIPS holder.

TIPS are issued by the US Treasury and backed by the full faith and credit of the US government. Because TIPS are regarded as an extremely secure investment, they are popular with investors nearing retirement.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/tips/
Modern Language Association (MLA):
TIPS. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 28, 2020 https://payrollheaven.com/define/tips/.
Chicago Manual of Style (CMS):
TIPS. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/tips/ (accessed: March 28, 2020).
American Psychological Association (APA):
TIPS. PayrollHeaven.com. Retrieved March 28, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/tips/

Definition Sources


Definitions for TIPS are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th February 2020.