Interest Adjustment on my TIPs - What is this?

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Always passive
Posts: 398
Joined: Fri Apr 14, 2017 4:25 am
Location: Israel

Interest Adjustment on my TIPs - What is this?

Post by Always passive » Mon Jul 15, 2019 2:58 pm

This 15 of July the following appeared in my Fidelity IRA account for all my individual TIPs (this is just an example on my 2026 TIP)
FEE OR INTEREST ADJ UNITED STATES TREAS NTS 0.62500% 01/15/2026 TIPS -$150

Can someone help me understand this issue?

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Blueskies123
Posts: 567
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Location: South Florida

Re: Interest Adjustment on my TIPs - What is this?

Post by Blueskies123 » Mon Jul 15, 2019 3:28 pm

Always passive wrote:
Mon Jul 15, 2019 2:58 pm
This 15 of July the following appeared in my Fidelity IRA account for all my individual TIPs (this is just an example on my 2026 TIP)
FEE OR INTEREST ADJ UNITED STATES TREAS NTS 0.62500% 01/15/2026 TIPS -$150

Can someone help me understand this issue?
The reason I am with Fidelity is their outstanding customer service. I have called them at all hours with complicated questions. They never failed to be very helpful.
To answer your question I am guessing it is the inflation adjustment payment that you get with TIPS.

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FIREchief
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Joined: Fri Aug 19, 2016 6:40 pm

Re: Interest Adjustment on my TIPs - What is this?

Post by FIREchief » Mon Jul 15, 2019 6:05 pm

I assume you are looking at the account history. That ten year TIPS pays coupons on Jan 15 and July 15, so you're just seeing the semiannual coupon payment. If the nominal amount of those TIPS is $48K, then that would lead to the $150 coupon payment.

ETA: it looks like Fido has changed their system. I'm seeing two lines for each interest payment (a debit and a credit) whereas I used to just see a credit. I'm guessing it's just some minor change in how they report the coupon payments. Is that what you're asking about?
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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DanMahowny
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Re: Interest Adjustment on my TIPs - What is this?

Post by DanMahowny » Tue Jul 16, 2019 10:04 am

I have no clue, OP. I own the same TIPS and don't see anything like that in my account history. Just the July15 interest payment.
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