TIPS Versus I-Bonds

There are technical differences that affect how rates of inflation are built into the yield of the securities.

Also, there is a difference in the frequency with which interest accrues (monthly for I-Bonds and semi-annual for TIPS).

There is a secondary market for TIPS but not for I-Bonds.

Both securities are exempt from state and local taxes but not federal taxes. I-Bond earnings may be exempt from federal taxes if proceeds are used for educational purposes.