IDA: Frequently Asked Questions
RIVCO.IDA
FREQUENTLY ASKED QUESTIONS
BY PROSPECTIVE PARTICIPANTS
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.
RivCo.IDA participants may use their savings and match money toward any one of three productive
assets: a home, a small business, or 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 one dollar a RivCo.IDA participant saves, he or
she will earn another 2 dollars toward the purchase of his or her total asset.
Why would anyone give away money like that?
Savings matches are not “giveaways.” Participants earn savings matches by saving their own hardearned
dollars and taking other steps to prepare for the future, like attending personal finance workshops. Furthermore, providing match dollars is a way to help hard working low-income families and individuals build a more stable and secure future. Everyone benefits when more members of a community have the tools they need, the productive assets, to provide for themselves and their families.
This same thinking has been behind government initiatives like the Homestead Act of the nineteenth
century and the GI Bill following World War II.
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 RivCo.IDA Program attend a
fifteen part personal finance and money management workshop series, including 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?
RivCo.IDA is open to individuals or families who meet the following criteria:
1. Residence in Riverside County.
2. Total household income that qualifies for the Federal Earned Income Tax Credit (EITC); less than
$13,440 for an individual, $35,463 for a household with one child, $40,295 for a household with two
children, $43,279 for a household with three or more children, or 200% of the federal poverty
guidelines based upon household size (contact program manager for details).
3. Earned income that averages at least $20 per month; earned income can come from a traditional job
or self-employment earnings reported on your tax return.
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
Where are the savings deposited?
RivCo.IDA has enlisted Altura Credit Union, Citibank, City National Bank and Guaranty Bank as
financial institution partners. Program participants are required to establish special IDA savings
accounts at one of the branches of these institutions. IDA accounts will not be assessed any monthly
service fees and will be insured by the FDIC, FSLIC or FCUIC for up to $250,000 per account.
What about making savings withdrawals?
Because IDAs are intended to help people purchase productive assets, withdrawals for non-asset uses
are prohibited. If faced with an emergency situation, program participants are encouraged to access all
available community based resources to resolve their immediate crisis. Program staff will assist
participants in locating resources as requested. If they choose, participants are always free to close their
personal accounts, withdraw from the program and receive all of their personal savings and earned
interest. Participants who withdraw from the RivCo.IDA program prior to completion are not eligible to
receive any savings matches. Matching funds are not dispersed directly to the participant under any
circumstances.
How do participants receive match funds?
Matched funds will be made available to participants only when they are ready to purchase their chosen
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 (i.e. a mortgage company, home inspector, wholesale
supplier, or community college or university).
How can I apply to participate?
Anyone interested in receiving more information about RivCo.IDA must attend one of the regularly
scheduled program orientation sessions. To find out the dates and locations of upcoming orientations
and workshops, or to request additional information, call Community Action Partnership of Riverside
County at (951) 955-4900 or (800) 511-1110 or visit our website at www.capriverside.org.
