TIPS now offer investors the opportunity to lock-in a 2.9% real return plus the realized headline CPI rate for three decades.

Per TreasuryDirect:

Principal Adjustments: The face value (principal) of a TIPS goes up with inflation and down with deflation, as measured by the CPI.

Fixed Interest Rate: TIPS pay a fixed interest rate twice a year. Because the interest is calculated as a percentage of the adjusted principal, your actual payout increases when inflation rises.

Maturity Payout: When the bond matures, the U.S. Treasury pays you the inflation-adjusted principal or the original face value, whichever is higher. This guarantees you will never receive less than your initial investment.