A Saving Account That Actually Saves and Pays
When someone wants to save money the first thing comes to mind is a saving
account, but for a low income family saving money is difficult or not feasible
especially if the return is a measly 2 to 4% interest.
A high return is critical for someone or a family trying to purchase a home,
business, education, or job training. Wouldn't it be wonderful to find a saving
account that pays a return 2:1 or even 3:1? Well, bet your bottom dollar there is
actually an account that exits. The Individual Development Account which goes
by the acronym IDA savings account. It was establish in 1990 by the Corporation
for Enterprise Development and the Progressive Policy Institute. Your income
funds the account, it is similar to the 401k plan for employees.
This account matches your saving at a much higher interest rate than a regular
savings account. for example, you $100.00 and it will match $200.00. You can
save more money this way than the usual method, it basically helps build assets.
Assets are important because it helps build stability, health and financial peace of
mind. Many low income including myself do not make enough income to save or
invest but this account gives an opportunity to take a step up the financial ladder.
You are probably wondering, what is the stipulations so to ease your mind there
are two 1. The money can only be saved and used for purchasing a home, opening
a business, education, job training and retirement. 2. Attend a financial literacy
class to help understand personal finances. That's it!
Opening an IDA account consist of depositing money in which you decided how
much every month, continue to stay with it until the amount of savings has been
matched and reached. The payments usually range from $25 to $75 monthly. Keep
in mind you always have control of your money but that doesn't mean you can
take your money out before maturity . If you have to withdraw your money it must
be for emergency purposes . You will be defeating your purpose to save money if
you do not maintain your saving account.
Do not save for a rainy day but save for that big ticket and build prosperity for
yourself.
If you are interested in the IDA program go to www.cfed.org to open an account in
your area.
Information provided and written by Velma Shawa