- Individual Development Accounts (IDA)
The Individual Developement Account, also known as (IDA), is a savings account that offers low-income workers the opportunity to open a matched savings account that can be used for small business development, higher education, or the purchase of a first home. Some programs may allow for other purchases such as a car or computer. IDA programs can have a match contribution of one to four times the size of each deposit made by a participant. For example, if you receive a 2:1 match, each time you deposit $25, you will get an additional $50 toward your savings goal. Once an individual or family is accepted into the program they are required to enroll in a financial education training that is related to their savings goal. Upon completion of the training, the IDA account is opened and participants begin saving for the asset purchase that they have selected. The duration of most IDA accounts is from one to three years and allows for a 6-month grace period in the event of a job loss or unexpected emergency.