What is an IDA?

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 low-income families to move into the economic mainstream.

IDAs are matched savings accounts.  People who save through an IDA can typically use their savings to:

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

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 us at 505.217.2747.