An Individual Development Account (IDA) is a matched savings account designed to enable low-income families with incomes at or below 200% of the federal poverty level to save towards a specific goal. Most IDA’s are used for home ownership, post-secondary education, or small business ownership. In addition to earning matched dollars, IDA participants are required to attend 6-8 hours of financial skill-building classes to receive additional training before opening the account. Classes are offered one-on-one or in a classroom setting.
Community Action also offers IDA participants with financial literacy education, budget counseling, and long-term case management. Community Action’s financial partner for IDA’s is First Merit Bank. Each participant will open up an account with First Merit Bank in Delaware, Ohio, but once the account is open, deposits can be made at any First Merit location. The bank or credit union will handle all transactions to and from the IDA. Each month, IDA participants will receive a report telling them how much money is accumulating in their account.
Community Action is proud to offer traditional IDA’s in Delaware, Madison, and Union counties, as well as offering non-traditional IDA’s in the above three counties along with Champaign, Logan, and Shelby counties as well. Traditional IDA’s can only be used for starting a small business, helping fund post-secondary education, or buying a home. Non-traditional IDA’s can be used for more flexible purposes such as buying a computer, buying a used car, etc.
How the Program Works:
- Complete the initial application and release forms.
- If you are approved for the program, you will complete additional paperwork for processing.
- You will make monthly deposits into your IDA account.
- Community Action will make a $2 match deposit in your IDA account for every $1 you save.
- You must attend financial literacy classes and be involved in planning your specific program.
- The program takes approximately 6-18 months to complete.
- Total savings, plus match, will be approximately $3000 by the end of the program, plus interest.
- Funds are paid directly to the provider of the investment or asset that you have chosen (for example, a home, a vehicle, education, etc.)
- Funds can be withdrawn for emergency purposes only one time prior to completion of the program.
For more information or to schedule an appointment, please contact CAODMU by clicking here.