Investing - Theory, News & General • tips vs cds, a current comparison

Hi Folks,

I recently had a $100k cd mature off my ira five year cd/treasuries ladder and given current rates, I'm deciding between a five year cd or tips. I asked ai to create this table and haven't vetted the numbers but the breakeven looks correct. Is there an online calculator that creates a similar comparison? if not, I'll create one or perhaps a BH with online content around tips might like to add this type of calculator to their content.

In any case, I thought others might find this comparison useful. To my eye, tips seems to be the winner, thoughts?

best,

Code:

5-yr brokered CD (5.10% YTM) vs 5-yr TIPS (2.71% real), $100K, pretax accountEnding values in today's dollars after 5 yearsInflation    CD nom  CD real  TIPS nom  TIPS real      CD $    TIPS $  Winner-3.00%        5.10%    8.35%     2.34%      5.51%   149,333   130,757  CD +18,576-2.00%        5.10%    7.24%     2.46%      4.55%   141,868   124,934  CD +16,934-1.00%        5.10%    6.16%     2.58%      3.62%   134,846   119,459  CD +15,3870.00%         5.10%    5.10%     2.71%      2.71%   128,237   114,305  CD +13,9321.00%         5.10%    4.06%     3.74%      2.71%   122,013   114,305  CD +7,7082.00%         5.10%    3.04%     4.76%      2.71%   116,148   114,305  CD +1,8432.33% (BE)    5.10%    2.71%     5.10%      2.71%   114,305   114,305  Tie2.51% (avg)   5.10%    2.53%     5.29%      2.71%   113,288   114,305  TIPS +1,0173.00%         5.10%    2.04%     5.79%      2.71%   110,619   114,305  TIPS +3,6864.00%         5.10%    1.06%     6.82%      2.71%   105,402   114,305  TIPS +8,9035.00%         5.10%    0.10%     7.85%      2.71%   100,477   114,305  TIPS +13,8286.00%         5.10%   -0.85%     8.87%      2.71%    95,826   114,305  TIPS +18,4797.00%         5.10%   -1.78%     9.90%      2.71%    91,431   114,305  TIPS +22,8748.00%         5.10%   -2.69%    10.93%      2.71%    87,275   114,305  TIPS +27,0309.00%         5.10%   -3.58%    11.95%      2.71%    83,345   114,305  TIPS +30,96010.00%        5.10%   -4.45%    12.98%      2.71%    79,625   114,305  TIPS +34,680BE = breakeven inflation (1.051/1.0271 - 1). Avg = 20-yr CPI-U, Aug 2006 to Aug 2026.Assumes annual compounding, held to maturity, TIPS bought at issue (index ratio ~1.0),interest reinvested at the same rate. Deflation rows assume par floor at maturity.

Statistics: Posted by gips — Tue Sep 29, 2026 1:38 pm