What is a "savings match?"
A "savings match" is a promise to supplement your savings deposits at a specific rate. As an example, a 2:1 savings match means that for every dollar you save from your earned income, you will have another 2 dollars added to your total account balance.

Why would anyone give away money like that?
Savings matches are not "giveaways." You earn savings matches by saving your own hard-earned dollars and taking other steps to prepare for the future, like attending financial education classes.

Is there more to this program than just savings matches?
Yes. Most people need more than just cash to become successful homeowners, entrepreneurs, or college or vocational school students. For this reason you will be asked to attend financial education classes. These workshops are designed to help you acquire or polish the personal and financial skills that are essential for long-term success, skills like long-range planning, household budgeting, credit repair, and savvy consumer habits.

Where are savings deposited?
Covenant's financial institution partners are Compass Bank and Wells Fargo Bank, where Smart Savings participants establish their savings accounts. Smart Savings accounts will not be assessed any monthly service fees and will earn interest.

How is the asset actually acquired?
Your savings match dollars are paid directly to the asset provider (e.g., to the mortgage provider, university, or business capitalization account at a federally insured financial institution). Matched funds will be made available to participants when they are ready to purchase an asset. At that time a vendor check will be issued directly to the company, institution or individual furnishing all or a part of a participant's asset goal (a mortgage company, home inspector, wholesale supplier or community college, for example).

What about making withdrawals?
Because Smart Savings Accounts are intended to help people purchase productive assets, withdrawals for non-asset uses are strongly discouraged. However, in certain emergency situations, program participants may withdraw some of their savings before they are ready to purchase their chosen asset goal. Such withdrawals would not include savings matches. And, of course, participants are always free to close their accounts, withdraw from the program and receive all of their savings and earned interest.

Can you explain more about how I can use the money?
Homeownership: A Smart Savings Account can be used for the down payment and/or closing costs of a house to be used as the participant's primary residence.
Education/Training: A Smart Savings Account can be used to cover the cost of attending an accredited vocational or technical training institution, community college, or four-year college or university.
Business Development: A Smart Savings Account can be used to cover the cost of starting or expanding a participant's business.

What if my income goes up, or I become unemployed, after joining the program?
Covenant only certifies your eligibility for the Smart Savings Program at the time you apply. You can remain in the program even if your income goes up or if you become unemployed, as long as you can continue to follow the program guidelines.

What happens when I save enough to buy my asset?
Meet with us and tell us you want to make a withdrawal for one of the recognized purposes. Together, we'll review your participation in the program and verify the details of your asset purchase. Then we'll withdraw your own savings and the match money by means of a check made payable to the vendor from whom you are purchasing your asset. Simple!