Individual Development Accounts

With Individual Development Accounts (IDA), LEDC (in conjunction with Capital Area Asset Builders) offers the best savings rate in the District of Columbia! Individuals and couples living in the District of Columbia who are interested in saving to start a small business or make a down payment on their first home may apply to receive a matching grant in as little as six months. That means that if individuals save for at least six months and participate in LEDC’s financial and asset training, they may be eligible to receive a three-to-one matching grant to go toward a business or home purchase; that is better than any bank’s interest will ever yield!

If you are interested in increasing your savings in order to purchase a home or start your business call LEDC to apply. For more information see our Frequently Asked Questions below about matched savings accounts.

Who can apply for the matched savings account?
What is the match rate?
How can I spend the money?
How can I sign up for an Individual Development Account?
Are there any other requirements?
What is the maximum amount of matched funds I can receive?
How long do I have to save before I can get my match?

Who can apply for the matched savings account?
Qualified applicants must show proof of income and DC residency, and also meet the following CAAB income guidelines for household income: 

-- 1 adult: income cannot exceed $35,760
-- 2 adults: income cannot exceed $40,868
-- 3 adults: income cannot exceed $45,977
-- 1 adult & 1 child: income cannot exceed $45,977 
-- 2 adults & 1 child: income cannot exceed $45,977 
-- 1 adult & 2 children: income cannot exceed $45,977
-- 4 members total: income cannot exceed $51,085
-- 5 members total: income cannot exceed $55,172

What is the match rate?
The match rate is 3:1. For each 1 dollar you save toward your goal you will receive 3 dollars in matching funds.

How can I spend the money?
Matched savings are designed to help you save in order to put a down payment on your first home or for expenses related to starting or improving your own business.

How can I sign up for an Individual Development Account?
Call to make an appointment with LEDC today. Be prepared to bring the following documents to the meeting:
• Proof of DC residency
• Identification
• Proof of income (e.g. two recent consecutive pay stubs or cancelled checks)
• Tax returns from the previous year
• For Business IDA applicants: Business plan/ business tax statements (LEDC’s business training program can assist you with these items if necessary)

Are there any other requirements?
Yes. Before withdrawing your match you will be required to complete money management and asset-oriented training offered at the LEDC offices. You will also be required to save a minimum of $75 every three months.

What is the maximum amount of matched funds I can receive?
For individuals (IDAs) the maximum amount of matched funds is $3,000. For married couples (MDAs) the maximum is $9,000.

How long do I have to save before I can get my match?
You must save for a minimum of six months before receiving a match. Call 202-588-5102 x38 today to set up your own matched savings account for your first home.