Individual Development Accounts

FAQ

What is an IDA?

IDA stands for Individual Development Account, a “matched” savings account designed to help low-income and low-wealth families accumulate high-return investments in education, home ownership, and small business development. The IDA program offers eligible individuals or households to save for a future asset, obtain general economic literacy training, asset training, and receive assistance from a local community organization, while having their savings dollars matched on a 3:1 ratio (for every $1 saved, the participant will receive an additional $3 up to $2,000 saved).

Who is eligible?

• Individuals or households who are TANF eligible
• Individuals or households that are EITC (Earned Income Tax Credit) eligible
• Individuals or households that are 200% of poverty or below

AND, those eligible must pass a net worth test.

What can I save for?

• Home ownership
• College
• Small business development

What are the minimum and maximum savings amounts that are matched?

• Minimum: $25 per month
• Maximum: $100 per month up to $1,000 per year, and a program maximum of $2,000 of savings through the life of the IDA account
• A maximum of two IDA accounts per household is allowed

What are the classes and trainings participants must attend?

• A minimum of eight hours of general economic literacy training
• A minimum of four hours of asset management training each year by each participant
• A minimum of six of these hours must be completed prior to enrolling in the IDA program

How do I find an organization doing IDAs in my community?

If you are an individual interested in startingt an IDA please contact us at (603) 224-6669 or info@theloanfund.org.