I Bonds vs TIPS 2027 Comparison Calculator

Compare I Bonds vs TIPS 2027 — both inflation-protected. I Bonds: $10k/yr cap, simple, tax-deferred. TIPS: no cap, complex, yields vary.

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I Bonds Mechanics

Savings bonds. Rate = fixed rate + 6-month inflation rate. $10k limit per SSN per year. Tax-deferred until redemption. Up to 30 years.

TIPS Mechanics

Treasury Inflation-Protected Securities. Principal adjusts with CPI. Pays interest semi-annually on adjusted principal. No annual cap.

Tax Treatment Difference

I Bonds: federal tax deferred until cash out, state tax-free. TIPS: federal annual tax on both interest AND inflation adjustment (phantom income).

Liquidity

I Bonds: 1-year lockup, 3-month interest penalty if cashed before 5 years. TIPS: trade on secondary market anytime but face mark-to-market risk.

Source: treasurydirect.gov I Bonds, treasury.gov TIPS. Last updated: May 2026.