What is an Individual Development Account (IDA)?
An Individual Development Account or “IDA” is a special matched savings account designed to help low-income families accumulate savings for investments in long-term assets such as a house, higher education, small business or a vehicle. The savings accumulated in an IDA are matched on 2:1 basis, $2 for each $1 saved.
Who is eligible to participate?
- Persons who receive Temporary Assistance for Needy Families – FIP in Iowa
- Those who are eligible for the Federal Earned Income Tax Credit (EITC)
- Those whose income is less than two times the Federal poverty limit
- 200% of Federal Poverty Guidelines:
HOUSEHOLD SIZE 200% 1 $21,660 2 $29,140 3 $36,620 4 $44,100 5 $51,580 6 $59,060
What kind of asset choices do I have?
Buying a home; starting or expanding a small business; paying for post secondary education, or purchasing a vehicle, if you do not already have one.
What is the maximum amount an account can be matched?
The maximum amount matched under the Federal IDA program is $2,000 for an individual and $4,000 for a household.
What is the minimum monthly deposit?
$25.00 per month
How long do I have to save money?
At a minimum, a participant must save for six months. The length of time may vary depending on the asset choice or their ability to qualify for a loan.
What are the requirements of the program?
Participants must attend a financial education program must make the minimum savings deposits each month.
Other criteria for eligibility and participation will be discussed with persons referred to the IDA program.