What is an Individual Development Account (IDA)?
An Individual Development Account (IDA) is a special type of savings program run by nonprofit organizations. You keep your money in a bank, and the amount of money that you put in your IDA savings account is matched by the nonprofit organization. This savings match is much higher than the interest rate on a regular savings account. For example, some programs will give you $3 for every $1 that you save!
What's the Catch? You can only use the accounts for buying a home, paying for education or job training expenses, or starting a small business or saving for retirement. And, you must go to financial literacy training classes on how to manage your money and credit.
IDA programs are very competitive and are not available in every area.
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