Individual Development Accounts (IDA)

What is an IDA?
An Individual Development Account (IDA) is a special matched savings account used to save money for a specific asset purchase. IDAs are similar to Individual Retirement Accounts and 401K plans; however, they are not pension plans. IDAs may be used to save toward:
1) First-time Home Ownership,
2) Post-Secondary Education
3) Child's Post-Secondary Education
4) Micro Enterprise (Small Business) Start-Up
or Expansion

IDA participants attend personal financial management classes, establish a savings account at a local bank, and make monthly deposits based on a savings plan. Money saved is matched by public or private funds at a 2:1 rate.

Beans and Rice, Inc. is the New River Valley's Virginia Individual Development Accounts local intermediary. Funding is provided through the Department of Housing and Community Development. Learn more at dchd.virginia.gov.

Why Join?
IDAs are risk-free investments. Savers can not lose money. At the same time, IDAs offer several benefits:

Multiply your savings by three in 2 years! Turn $1,000 into $3,000 or $2,000 into $6,000. Traditional investments earn between 6% and 10% annually, but IDAs yield a 200% guaranteed return. That means $1,000 invested in the stock market might earn $100 in a year. By comparison $1,000 in an IDA would grow to $5,000, or $3,900 more in 1 year.

Become a Home Owner: Build Equity. Stop wasting $500 a month on rent. Gather a $6,000 down payment. Buy a house worth as much as $90,000 in the New River Valley.

Earn a Post-Secondary Degree: Earn more money! Persons with a Bachelor's Degree earn on average $13,100 more per year than those with High School Diplomas. An IDA pays for nearly 7 semesters in-state tuition at New River Community College.

Start or Expand a Small Business: Buy new equipment, more advertising, or expand your market without a loan, or use your IDA savings as a down payment on a larger business loan. Be your own boss, make decisions, be creative, work long and hard hours that benefit you, not someone else.

Manage Money More Wisely: The financial education program helps savers budget money better, reduce over spending, identify spending leaks, save more money and establish regular habits of saving. Additionally, savers can unburden themselves from debt, use credit more wisely, repair credit and improve credit scores! Learn to plan for the future, as opposed to simply staying afloat today.

Who's Eligible?

Prospective savers must:

• Be a U.S. citizen or legal alien living in Virginia
• Have earned income from employment
• Have a dependent child under the age of 18 living in the household if saving for business or education
• Save at least $25 per month
• Have annual household income at or below specified levels for locality in which participant resides:
  
  
  

  Household Income Guidelines
  Size	Max Income
  1	$21,660
  2	$29,140
  3	$36,620
  4	$44,100
  5	$51,580
  6	$59,060

  
  

To Enroll

• Call Beans and Rice, Inc.
  540-980-4111
• Schedule an appointment to fill out an application, determine eligibility, ask questions, and complete paperwork. Bring required income verification forms (pay stubs and tax return), a $25 money order for the opening desposit, and a $35 money order for the enrollment fee. Enrollment documents are provided below.
• Your account will be opened in 45-60 days by DHCD
• Sign up and complete the next "Money Talk'in" personal financial management workshop. Savers are officially enrolled and eligible to receive matching funds upon fulfilling all workshop requirements.