Frequently Asked Questions

What is an Individual Development Account?

An Individual Development Account is a restricted savings account that is established for a very specific purpose.  Through financial planning, using debt wisely, and discovering ways to either increase your income or reduce your spending, it is possible to put aside funds in order to secure an asset for you and your family.

An Asset is something of value, that will likely increase in value over the years.  Although “value” is often referred to as how much money an object is worth, there are other types of value.  Learning a skill or trade that will help you secure a job, developing strong financial management skills, and learning how to get the most from community resources are all strong assets that cannot be taken away from you.

Assets eligible under this plan are:

a.  Creation or expansion of a business
b.  First time homeownership
c.  Education (college or trade school)

Who is eligible to save?

The adjusted gross income of your household must fall within these guidelines. 

The adjusted net worth of the household (excluding a home and one vehicle) must be under $10,000.

What if my income goes above the requirements while saving?

Once you qualify to open an IDA, you do not have to re-qualify.  If your net income or net worth moves above the requirements you will not be removed from the savings opportunity.

Why save this way?

These accounts are custodial accounts that will not put your federal or state benefits at risk. 

What do you mean by custodial account?

The savings account is a partnership between you and Open Hands.  The account will be opened in both your names and will require two signatures for any withdrawals.

Can the organization take my money?

No.  The savings account is your account.  Your signature is required for any action on that account.  You can stop the matched savings plan at any time and remove your money from the account.

What do you mean by “matched savings”?

Your savings is matched at a 4:1 ratio – a match of $4.00 for every $1.00 you save.

How much will you match?

$4,000 is the most that can be matched to your account.  This means that we will not match over $1,000 of your personal savings, for a total account of $5,000.

What if I want to save more than $1,000?

You can save as much as you like in this account.  Once you reach $1,000 the match (4:1) will stop, however you may continue adding to the savings.

When can I withdraw my funds?

Anytime.  However, in order to receive the match funds as well, the following must be complete:

• Savings held in the bank for no less than 6 months;
• Graduate from the Financial Management and Planning Course (20 hours total).*
• Develop a savings plan detailing how much money is needed to purchase your chosen asset, how much of that you will need to save, and how much you can save per month to reach that goal.  This plan must be completed before you are approved to participate in the program and open an account.
• Develop an asset plan detailing the asset you plan to purchase with your IDA account, then how you plan to utilize it.  This plan does not have to be finalized before opening your account, but it does have to be finalized before withdrawing funds from it.

* Classes are held every Wednesday from 6:00 – 8:00 p.m. beginning March 5th at Open Hands facility. Childcare services are provided along with a light dinner for all attendees.

What if more than one person from my family wants to save?

It is okay to open up more than one account per household.  No more than $8,000 will be matched within any one household ($2,000 of your personal savings).

Click here to fill out an application.