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About Us MicrosavingsWhy Microsavings?Opportunity Fund’s work is based on the powerful idea that assets — a home, a business, an education — are key to helping families climb out of poverty. These assets can be passed from one generation to the next and serve as a point of stability in tough times. Until a family builds assets, savings, and the ability to make informed financial decisions, they are just one paycheck away from sliding into poverty. Yet 50% of Americans say they can’t afford to save, and it’s especially tough for the low-wage earner.
How Does It Work?The microsavings account we offer our clients provides the tools and incentive low-wage workers need to build savings. We offer something called an Individual Development Account, or IDA, which is a matched account — like a 401(k) — that help low income families build savings for the future. Savers go through a comprehensive money management and financial education training process and then begin to save a minimum of $20 a month. We then match $2 for every $1 a person saves towards their asset goal. The savings account is held at Citibank, Opportunity Fund's enduring financial institution partner that makes it possible for us to provide to an IDA savings account to thousands of Bay Area families. Our savers can use their savings and match money to build assets that can lift them and their children out of poverty — buying a home, paying for college, or starting and growing a small business.
At the end of two years, our client earns up to $6,000. What Are The Results?Loans and credit are only one side of microfinance services. With savings products, we are giving people the means and know-how to build assets. Our savers:
Social Impact: See the facts and figures |
