Individual Development Accounts (IDA)
What is an Individual Development Account?
Individual Development Accounts (IDAs) are matched savings accounts that enable low-income and low-wealth individuals to save for a specified goal within a defined time frame. The typical savings goals are homeownership, small business ownership, and post-secondary education. Money saved in an IDA account is matched with State dollars and savings can only be used for specific asset-building purchases or investment; for example, to buy or rehabilitate a home, pay for education, and/or to start a small business. Customers must save at least $400 of earned income per year.
How Does This Individual Development Account Help?
This program is designed to assist individuals in achieving self-sufficiency through financial literacy and asset generation. If criteria are met and individuals are accepted into the program, the State will match funds $3 to every saved $1 for four years. Minimum individual savings will be $1600 in four years and the State match adds $4800 into the account for a total of at least $6400 to be used for qualified asset purchases.
Who Qualifies?
Criteria for this income-based program are as follows:
- The entire household size and combined earned income must be under 175% of the OMB poverty guidelines.
- Individuals must have saved $400.
- A full credit report must be provided or a fee of $20 for single or $30 for a joint report must be paid prior to application submission to the State.
- 8-12 hours of financial literacy classes must be completed during the first year of being accepted.
How Do I Apply?
Contact Jennifer Manthei at 812.882.7927 ext. 1213 to schedule an appointment to learn more about this program and to complete an application. Information to start the financial literacy classes will also be provided.
