Twenty-one credit unions in Iowa who have partnered with the Iowa Credit Union Foundation to offer lower income members individual development accounts stand to share in additional state funds made available for the popular savings accounts.
Individual development accounts are savings accounts which an account holder designates for specific purposes such as saving for a home, furthering education, purchasing an automobile to get to work or starting a business.
Once established, the accounts are eligible for matching deposits from a third party such as the Iowa Credit Union Foundation.
The foundation estimates that the additional funds will equal about $225,000 when finally distributed.
“Iowa credit unions are in a unique position to offer no-cost savings accounts to families and individuals needing help to get ahead financially in this tough economy,” said Marybeth Foster, ICUF executive director. “Our immediate goal is to offer a method of saving for a specific asset, and financial education, which is so crucial to financial stability.”
The overall goal is to help demonstrate to low-income Iowans the importance of savings in an effort to end poverty and to help working Iowans become financially independent.
“We are pleased the Iowa Legislature understands the benefits of an IDA program targeted to working families who are saving to better their financial situation,” said Foster. “It is one more important tool toward helping families get ahead.”
The 21 participating credit unions are Advantage CU, Affinity CU, Alliant CU, Ascentra CU, Cedar Falls Community CU, Community 1st CU, Des Moines Metro CU, Dupaco Community CU, DuTrac Community CU, Employees Credit Union, Financial Plus CU, Greater Iowa CU, Iowa Community CU, Linn Area CU, Metco CU, RIA FCU, SCICAP CU; Telco Triad Community CU, United Service CU, Veridian CU, and Village CU.