Individual Development Accounts and Banks: A Solid ‘Match’

Even with the greater access to banking products and services provided through the development of alternative delivery channels, including the Internet, about 10 million American households, typically low- and moderate-income families, do not use the banking system. Many more only use a limited number of banking services. A particular type of savings account, the Individual Development Account (IDA), is a relatively low risk way for banks to introduce these households to the banking system. This article explains how IDAs operate, describes banks’ experience with IDAs, and points bankers to sources of information about these programs. 

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