Dakota Dream Savings Fund
Individual Development Account Program
The South Dakota Individual Development
Account Collaborative was started as a joint effort between the North Dakota
Community Action Association and the South Dakota Community Action Agencies
to create an IDA Program in South Dakota.
The IDA Program is a matched savings account program to provide, for
qualified individuals, the opportunity to save money toward purchasing a
home, starting or expanding a small business or pursuing secondary
education. Their savings, up to $2,000, will then be matched 2:1 by grant
monies through the four South Dakota CAP Agencies for the purchase of a
home, business start up or expansion or secondary education.
The IDA Program is an exciting new venture for the CAP agencies as well
as the participants.
For more information, call ROCS at 1-877-254-6110, email
kmarts@hcinet.net or stop into the
office in Lake Andes.
How do IDAs work?
IDAs represent a powerful tool used by community organizations throughout
the United States to stimulate participants' savings rates, build their
assets, and connect these individuals to the economic mainstream. The
following four-step process documents how an IDA participant moves through a
typical IDA program.
STEP 1 - Introduction and Orientation
The orientation sessions provide participants with information about the
program, asset-building options, importance of savings and the lifetime
development of assets.
STEP 2 - Opening Accounts
Program participants open IDA savings accounts with the cooperating
financial partners (bank or credit union). Participants sign a contract
expressing a commitment to save. The program tracks how much participants
have saved, how much they have received in matching funds and the
accumulated interest. Participants will also receive this information.
STEP 3 - Economic Literacy and Training
Participants meet with staff to develop a savings plan. Staff also discusses
income and consumer patterns. Participants attend mandatory training on
banking, investing and money management.
STEP 4 - Withdrawal, Purchasing Assets, and
Beyond
In Step 4, participants, with staff assistance, are ready to make bank
withdrawals from their savings. Participants can use funds to purchase a
home, continue their education or start a business and continue to save for
the future.
IDA Income Guidelines
Based on family size. Qualified
applicants must be below 200% of the Federal Poverty Guidelines.
Number in Household
Maximum Income (200%)
1
$20,800
2
$28,000
3
$35,200
4
$42,400
5
$49,600
6
$56,800
7
$64,000
8
$71,200
For each member over 8, add $7,200
