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The Short Answer

When I Bonds Beat TIPS

Tax advantages and interest-rate protection can tip the scales.


Note: This article has been corrected to reflect the way that inflation adjustments work for TIPS.

Question: I keep hearing about I Bonds as an inflation hedge, but I don't know much about them. How can I tell if they're right for me?

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Adam Zoll does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.