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A Bank Account to "Save the Day" for Low-Wage New Mexicans This from the New Mexico Public News Service Albuquerque - Wells Fargo and Community Action New Mexico are teaming up to offer "Individual Development Accounts" to a limited number of qualifying low-income families. The accounts match the family's savings, up to $1,000, 4-to-1. The catch is that savers must complete a financial literacy course and be saving towards a big, possibly life-changing purchase.
It's a bank account that quadruples savings, but there's a catch. Community Action New Mexico and Wells Fargo are teaming up to offer a limited number of "Individual Development Accounts" (IDAs) to low-wage workers looking to save up for something big - like a home, college tuition, or starting a small business. The first thousand dollars of savings in the accounts will be matched 4-to-1, but Patricia Nie with Wells Fargo in Albuquerque says the catch is, savers will be required to complete a financial literacy course first. Accoprding to Nie "From basic banking to what's involved in purchasing a home, how do you finance your education - it covers a wide spectrum of topics."
A limited number of IDAs are available statewide to individuals and families who have earned income but live at 200 percent of poverty or less, which is equivalent to about 40 thousand dollars or less for a family of four.
Ona Porter with Community Action New Mexico says the idea is to 'earn it, save it and grow it,'adding "And the growth is in taking an asset, learning how to manage that asset to leverage it, not only for more money, but for a better life." Porter says savings growth also contributes to the local and statewide economies. For more information contact your local community action agency or visit http://communityactionnewmexico.org .
