With "$ave NYC Savings Accounts" Bloomberg Continues to Innovate

New York Mayor Michael Bloomberg announced this week that the city will make available a number of resources to help low-to-moderate income residents file their taxes and access financial services at the same time. He highlighted the connection between these efforts and the city’s anti-poverty efforts by promoting access to free Volunteer Income Tax Assistance (VITA) sites, the Earned Income Tax Credit & Child Care Tax Credit, and a new $AVE NYC account program.

The $AVE NYC savings account is offered by the City of New York's Department of Consumer Affairs Office of Financial Empowerment. It provides tax filers with an opportunity to receive a 50% match on savings deposits, up to $250, if a client saves part of their refund in the account for at least one year. Families who earn less than $45,000, and individuals who earn less than $20,000 are eligible to participate. It is a pretty innovative approach and is one of the first local efforts to model the Saver’s Bonus idea that has been introduced by Sen. Menendez at the national level. This is an effort worth watching.