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Individual Development Accounts
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An Individual Development Account (IDA) is a $2-$1 matched savings account that provides the training and motivation to ``save your way into prosperity.’’

For every dollar a participant saves in the IDA, SNAP adds an additional two dollars. Participants save up to $2,000, which is matched by up to $4,000. The accounts must be used for:

• down payment on a first-time home (anyone who has not owned a home in 3 or more years)
• college or vocational education
• capitalizing a small business

The program involves these steps:

1. Develop a savings plan with the help of the IDA Case Manager
2. Open an IDA at a participating bank and begin saving according to your plan. You must save at least a minimum amount every month for at least six months.
3. Complete the IDA Financial Skills class during your first six months. This 12-hour class is offered on two Saturdays every other month.
4. Complete classes that will give more information and education about the asset you plan to buy. In the case of business capitalization, a business plan must be completed.
5. When your savings goal is reached, prepare for your asset purchase, working with your IDA Case Manager as needed.
6. To make a purchase, get a “qualified withdrawal form” from your IDA Case Manager and withdraw 1/3 of the asset cost from your IDA account. Bring the withdrawal slip to SNAP to receive a check for the remaining 2/3 of the cost.
7. After you complete your purchase(s), you will be asked to complete a program evaluation and to write a brief letter about your experience. Then, one year later, you will be asked a few follow-up questions by phone, in order to help us assess the value of the program.

Details

• Participant determines their monthly deposit amounts.
• Participant savings and interest remain in their ownership and will not be lost if they withdraw from the program. However the match is only available at the time of asset purchase when program requirements are met.
• The program encourages regular savings habits and only allows early withdrawals in specific emergency situations.
• All participants must complete both financial skills training and asset-specific training prior to the purchase of their chosen asset.
• In many cases, participants are eligible for additional matching funds for home ownership or business.