What is an IDA?

Individual Development Accounts:

An Innovative Approach to Replacing Poverty With Prosperity

Individual Development Accounts (IDAs) were created to encourage savings, investment and asset accumulation among moderate income and working families.  Assets – such as a home, a college education or a business – enable even low-income families to move into the economic mainstream. 

IDAs are a matched savings account.  People who save through an IDA can typically use those savings to:

• Buy a first home
• Pursue a college education
• Start or expand a small business

Turn $1000 into $5000

Every $1 of earned income saved by a person with an IDA account is matched by up to $4 ( “matching funds”) by  the federal government, NM state government, nonprofit organizations and private companies.  The maximum amount of matching funds that can be contributed to an IDA is $4,000.  So, if an IDA account holder saves $1,000, she or he is eligible for an additional $4,000 in matching funds.  These  funds are saved in a bank account.

Financial Education

IDA holders are required to complete a financial education program.  Most IDA programs are offered through local nonprofit organizations, which also provide financial education.  IDA savers learn to develop and manage a household budget, manage debt, set financial goals and achieve them. 

Learn more

To learn more about IDAs, call (505)217-2747 for more information.