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* that is being presented by Community 1st Credit Union and must make the minimum savings deposits each month.
Other criteria for eligibility and participation will be discussed with persons referred to the IDA program.