Individual Development Accounts (IDAs) are matched savings accounts set up in the name of an individual or family, and in the name of the sponsoring organization. IDAs are similar to Individual Retirement Accounts (IRAs), but can serve a broad range of purposes. Some designated purposes of IDAs are homeownership, education, training, and small business capitalization.

 Federal and state governments and/or private sector organizations and individuals can match deposits for low-income families. There is potential for creative program design and partnerships among the public, private, and nonprofit sectors, in cooperation with account holders themselves. The savings and financial literacy components of IDAs are attracting the financial community to be involved in IDA programs. Several financial institutions across the U.S., including community banks and credit unions, are currently running IDA programs.

 There are a variety of state and local IDA programs currently in existance in the U.S., with new programs developing at a startling rate. As of January 1998, nine states have passed IDA legislation, including Iowa, Texas, Tennessee, Ohio, Indiana, Pennsylvania, Maine, Maryland, and North Carolina. Several other states, including Missouri, have introduced IDA legislation. Multi-million dollar national IDA legislation has been introduced in both the House and the Senate to make asset-building possible for thousands of citizens. IDAs have also been included in the Personal Work and Responsibility Act of 1996, allowing states to establish IDA programs using TANF funds, and excludes counting IDAs as assets for the purpose of qualifying for benefits. At least 24 states have incorporated IDAs into their welfare plan.