Frequently Asked Questions
Is this a “scam” that will cost me money? No. The match funds are provided by foundations and federal funds that are available to people who want to buy an asset! The match rate is $3.00 dollars of program funds for every $1.00 dollar of personal savings. How much money can I deposit in my savings account? You can deposit as much money as you want into your savings account, but there is limit to how much will be matched. You must complete a VIDA Application with an IDA Specialist to determine match amount. Do I have to deposit the same amount each month? No, you are not required to deposit the same amount each month but you must not deposit less than what you indicated in the Savings Plan Agreement. Lump sum deposits that are more than what your household’s earned income will not be matched unless otherwise specified. How come my match money does not show up on my savings account statement? The match money never goes directly into your savings account. It is held in a separate account. The match money that is set aside for you is recorded on the VIDA statement that is mailed to you with the original bank statement. The VIDA statement shows how much money you have saved and how much match money is set-aside for you. Do I have to pay taxes on my savings account? You may need to report interest you earn from your savings. Keep in mind that the financial institution will report the interest you earned. What happens if my income goes up, will I be disqualified from the program? No, you will not be disqualified from the program if your income goes up. The goal is to help people improve financially–if your income goes up we feel successful and we hope you do too! So, who really controls the money I deposit? You do. VIDA cannot refuse to sign a withdrawal request. However, VIDA does decide if your withdrawal is unauthorized, an official emergency withdrawal, or a withdrawal for your savings goal. VIDA’s decision will affect whether you can receive match funds. Do I have to go to the “designated” financial institution to do my banking? You must open the IDA savings account and make withdrawals at the designated financial institution. After you have opened the IDA, you can make your deposits at any branch of the financial institution. What if I have not used my match money by the end of my term in the program? You will have a maximum of six months after you have met your savings goal to purchase your asset and/or utilize your full savings and match. If you do not use your funds within the timeline granted you will lose the match money and your savings will be returned to you. |