AFI Data Hybrid IDAs- Holding on to the Dream
People in Los Angeles who enroll in Individual Development Account (IDA) projects have traditionally faced many barriers to completing financial education training or reaching their savings goals. An example is the area’s extremely high cost of living, which is now compounded by the tough economy. Such factors have reduced the number of participants who remain in the program long enough to achieve their dreams, and a high percentage of IDA participants never reach their final goal of converting their savings into tangible assets.
That was the case at the United Way of Greater Los Angeles (LA United Way). To address the situation, the LA United Way developed an innovative tool to increase savings for IDA holders.
Since 2002 the agency has invested more than $8 million in its IDA program, and recently implemented the Hybrid IDA, which offers participants additional interest subsidies on their monthly deposits. Thus far, Hybrid IDA holders report higher and more frequent savings than regular IDA participants.
Click here to read more on Hybrid IDAs
- holding_on_to_the_dream.pdf (1.32 MB)