Family Savings Account (FSA)

Grants to designated not-for-profit community service and economic opportunity agencies to establish programs that provide matching funds to a low-income persons own savings.

Guidelines:

• Family Savings Account Guidelines (Adobe PDF)

Uses:

Purchase of a home/repair or approved renovation, post-secondary education or vocational for themselves or their children, funding a micro enterprise business, purchase child day care services in order to secure job training or employment or other use approved by the Department

Funding:

Participants may receive up to $2000 in matching funds, must save for at least 12 months to 24 months/36 months ( depending on contract period). Lifetime limit of match for one person is $2000.

Eligibility:

• Service Providers: Non-profit private and public organizations.
• Participants (Savers):
  • Recipients of TANF and other eligible individuals and working families whose earned income at the time of enrollment is not more than 200% of the official poverty standard set by the Federal Office of Management and Budget. As of July 5, 2005, additional income eligibility includes 80% of area median income.
  • Agree to save an amount that averages $10/week/$40 a month, on a monthly basis, up to $2,000. Contribution period is at least 12 months to a maximum of 24/36 months.
  • Saver must declare and save towards FSA approved goal and must attend at least four (4) basic financial management classes.

Terms:

Enrolled savers are required to save at least $10 per week/average of $40 per month, and may contribute to their account for at least 12 months to as long as 24 months (before 7/5/05)/36 months (after 7/5/05). Refer to FSA Program Guidelines.

Where to Apply:

Service Providers: Customer Service Center, Single Application for Assistance
Participants (Savers): Contact the FSA Grantee Agency in your area. Please refer to the FSA Grantee Agency Listing.

Other Information:

• Family Savings Account Fact Sheet (Adobe PDF)
• Family Savings Account Grantees (Adobe PDF)

FAQs:

How can a family or individual become a saver in the FSA Program?

A family or individual applies to participate in the program through local, non-profit FSA service provider. Non-profit organizations are eligible to apply to the Department of Community and Economic Development to become an FSA service provider. Once enrolled, savers must attend required workshops on basic financial management and attend structured counseling or technical assistance tailored for their individual savings goals. FSA service providers will conduct these workshops and technical assistance sessions. The required savings amounts, workshops and other savings-related sessions will be agreed upon in an approved savings plan.

Will use of the savings and matched funds be allowed for savings goals other than homeownership, education, micro-business, or day care to access job training?

Yes. FSA service providers must identify other uses in their application to the Department of Community and Economic Development (DCED) and be approved in their DCED contract. All approved uses must result in long-term asset accumulation and all approved savings plans must include technical assistance to help savers achieve and use funds for their savings goal.

Where are the savings and match kept?

A saver must deposit savings in an approved bank, savings and loan, or credit union which is cooperating with the non-profit FSA service provider. The savings account is owned and controlled by the saver. Savers can withdraw their own funds at any time. Matching funds are maintained in a separate account managed by the FSA service provider. The saver's funds and FSA service provider's portion will be matched at the completion of the approved savings plan. Both the saver's funds and the matched funds will be paid to the vendor, school, or other procurement source of the savings goal such as homeownership, education, micro-business, or day care to access job training.

For more information about the federal program click here

Purpose of Funding:

• Low Income Assistance - Community