Individual Development Accounts, also known as “IDAs,” are savings accounts that can be used to pay for a first home, higher education expenses, and small business development. Each time you make a deposit, the IDA program contributes a “match” to your account. The match may be anywhere from one to four times the size of the deposit you make. So if you’re enrolled in an IDA program with a 2:1 match and you deposit $50 into your account, you will receive an additional $100 deposit towards your savings goal.
There are more than 250 IDA programs nationwide and many have slightly different eligibility requirements. Generally speaking though, your annual income must be within 200% of the Federal Poverty Level to qualify ($20,800) and you must have some form of earned income. You must also take financial education training once you’re enrolled in the program.
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