How Do Prosperity Center Savings Accounts Work?

Prosperity Accounts (also known as Individual Development Accounts – IDAs) are an innovative financial product and economic development tool used by community organizations throughout the United States to stimulate participants' savings rates, build their assets, and connect these individuals to the economic mainstream. Private foundations and the public sector fund most of the programs. The following four-step process documents how a saver moves through the Prosperity Account program. 

 

All Prosperity Account savers must start the application process by submitting a required documentation. A Pre-qualification survey can be taken here. Once a saver has pre-qualified, they will receive an email with a link to submit the full application and the next steps in the application process.

 

All savers meet with a United Way administrator to review application, current household budget, discuss asset goals, review policies and procedures and complete savings plan agreement. Approved applicants will be referred to a designated financial institution for account opening. 

 

Budget Coaching and Credit Counseling is required prior to the purchase of their asset. Community partners provide valuable information to help increase the likelihood of successful asset purchase and retention. 6 hours (one hour per session) of the Budget Coach program is required.

 

In Step 4, savers, with staff assistance, are ready to make bank withdrawals from their Prosperity Account to purchase a home.

 

For a detailed breakdown of how the Prosperity Account program works, please refer to United Way Prosperity Account Policies and Procedures Manual.