3 Individual Development Account Programs

An individual development account is a type of savings account that is available for underprivileged individuals and families. With this type of savings account, the amount that they put into the account is matched by government or private funds. With this type of account, individuals can save money to buy a house, pay for college tuition, or start a small business. The funds that they contribute to the account will usually be matched on a 1:1 or 1:2 basis. Here are some of the different individual development account programs that are available.

1. Assets for Independence

The Assets for Independence program is administered by the Department of Health and Human Services. With this program, the government provides grants to non-profit entities that want to set up individual development account programs for local individuals. With this program, the nonprofit entity has to come up with funds to match the amount that is given by the Department of Health and Human Services. Individuals who qualify for this program can get as much as $2000 in matching money if they contribute that much to a savings account. In order to qualify for this program, you have to have a very low income. Your income has to be below 200 percent of the poverty level at the time.

2. Beginning Farmer and Rancher Program

This program is designed to help individuals who are interested in getting involved with farming. This program hopes to create more opportunities and economic growth for rural areas. With this program, individuals who have low incomes and small amounts of assets can set up savings accounts and have them matched. With this money, they can use it to start a farming business or to expand an existing business. With this program, they can have up to $3000 of their savings account matched. The matching with this program occurs at a 1:2 ratio. This gives them a maximum of $6000 that they can receive from the program if they put away $3000. This program can significantly help farmers to do not have much in the way of collateral to get additional loans to expand their businesses.

3. Office of Refugee Resettlement

This individual development account program is designed to help refugees that have settled in the United States. Many of these individuals do not have the necessary means or assets to get involved in the financial system and could struggle for years. With the help of the individual development account program, they can begin saving and get free money into their savings accounts on a matching basis. With this program, the limits for matching are $2000 for individual accounts were $4000 for family accounts. This program is also administered by nonprofit entities that receive grant money from the Office of Refugee Resettlement. In order to qualify for this program, the refugee has to agree to save a certain amount of money over a specific period of time.

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