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TIPS: How To Buy

how to buy tips

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. (We no longer sell TIPS in Legacy Treasury Direct, which we are phasing out .)

To open an account in TreasuryDirect, go to "Open An Account " and supply the requested information.

Decide How To Bid

You can enter either a noncompetitive bid or a competitive bid.

With a noncompetitive bid, you agree to accept whatever yield is determined at auction. If you bid this way, you are guaranteed to receive the security you want, in the amount you want.

With a competitive bid, you specify the yield you will accept. If you bid this way, you may or may not receive the security you want, and, if you receive it, you may receive it in less than the amount you want. To bid competitively, you must use a bank, broker, or dealer.

Submit a Bid in TreasuryDirect

The bid submission process in TreasuryDirect is completely online. Login to your account and from the "My Accounts" page, click on the BuyDirect® tab, select TIPS, click on the security you wish to purchase, and specify the

amount of your purchase. Follow the prompts to complete your transaction.

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

Also, from the "My Accounts" page, you can quickly purchase a security using Purchase Express. With this functionality, you select the type of security and the purchase amount. The system uses your preferred registration and the primary bank account you identified in your account, and then schedules your purchase for the next available auction date.

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

To place a competitive bid, you must use a bank, broker, or dealer. You also can bid noncompetitively using a bank, broker, or dealer. For more information, consult a bank, broker, or dealer.

Category: Taxes

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