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What is an IDA? IDAs, or Individual Development Accounts, are special matched savings accounts designed to help families and individuals of modest means establish a pattern of regular saving and, ultimately, purchase a “productive asset.” A “productive asset” is something of value that is likely to return substantial long-term benefits to its owner-- benefits like security, stability and opportunities for more income. WV Asset Development Initiative (WVADI) participants may use their savings and match money toward any of three productive assets: a home, a small business or a post-secondary education.
What is a “savings match?” A “savings match” is a promise to supplement an IDA participant’s savings deposits at a specific rate; in other words, a 2:1 savings match means that for every dollar a WVADI participant saves, he or she will have another 2 dollars added to his or her total account balance!
Is there more to an IDA Program than just savings matches? Absolutely. Most people need more than just cash to become successful homeowners, entrepreneurs or college or vocational school students. For this reason participants in the WVADI Program attend both a twelve part personal finance and money management workshop series and a special asset-specific preparation program. These workshops are designed to help participants acquire or polish the personal and financial skills that are essential for long-term success, skills like long-range planning, household budgeting, credit repair and savvy consumer habits.
Who is eligible to participate? The WVADI Program is open to West Virginia individuals or families whose income is within 150% of the Federal Poverty Level (200% for home buyers). What is required of IDA participants? IDA participants are asked to commit to: · make monthly savings deposits of at least $20 · save in the program for at least 12 months · attend a personal finance and money management workshop series · participate in asset-specific ownership preparation training · support one another through on-going peer support meetings
What about making savings withdrawals? Because IDAs are intended to help people purchase productive assets, withdrawals for non-asset uses are strongly discouraged. However, in certain emergency situations, program participants may withdraw some of their savings before they are ready to purchase their chosen asset goal. Such withdrawals would not include savings matches. And, of course, participants are always free to close their accounts, withdraw from the program and receive all of their savings and earned interest.
How do participants receive match funds? Matched funds will be made available to participants when they are ready to purchase an asset. At that time a vendor check will be issued directly to the company, institution or individual furnishing all or a part of a participant’s asset goal (a mortgage company, home inspector, wholesale supplier or community college, for example).
How can I apply to participate? Anyone interested in finding out more about the WVADI Program should contact KISRA at 304.768.1300.
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Send mail to michelle@kisra.org with questions or comments about this web site.
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