The Savings Deposit Program (SDP) is a financial benefit designed for U.S. service members actively deployed in designated combat zones. Managed by the Department of Defense (DOD), the program offers a secure and high-yield savings option to help military personnel achieve their financial goals during deployment.
Key Features and Benefits
Eligibility
To participate in the SDP, service members must meet these criteria:
- Be on active duty or serving as activated reserve members.
- Be deployed in a designated combat zone for at least 30 consecutive days or one day in three consecutive months.
- Receive imminent danger pay (IDP) or hostile fire pay (HFP).
Deposits
The SDP allows eligible service members to deposit funds and earn a competitive annual interest rate of 10%, compounded quarterly, on amounts up to $10,000. Key details include:
- Deposits must be in multiples of $5, with a minimum of $5 per transaction.
- Service members can contribute up to their full unallotted monthly pay, up to $10,000 during deployment.
- Deposits can be made via checks, cash, or allotments from pay through the finance office.
- Deposits may continue up to the $10,000 limit even after leaving the combat zone if missed during deployment.
- Interest accrues for up to 90 days after leaving the combat zone.
Withdrawals
Withdrawals from the SDP account are subject to specific rules:
- Funds above $10,000 can be withdrawn quarterly while deployed.
- The $10,000 minimum balance must remain in the account until eligibility ends.
- All funds must be transferred to the military-approved pay account within 120 days after leaving the combat zone.
- Emergency withdrawals are allowed for health or welfare needs with unit commander approval.
How to Enroll and Manage Your SDP Account
Starting SDP Deposits
- Visit your service's admin/finance office with your Leave and Earnings Statement (LES).
- Decide on the contribution amount (minimum $5 per transaction).
- Open an SDP account and arrange deposits through allotments or direct contributions.
- Maximize interest by contributing early in the month, as interest compounds quarterly.
Managing Withdrawals
SDP withdrawals depend on your deployment status:
- After Leaving the Combat Zone: Withdraw the full amount through myPay or request via email or mail. If no action is taken within 120 days, funds will be automatically deposited into your linked account.
- Before Leaving the Combat Zone: Emergency withdrawals of less than $10,000 are allowed with commanding officer approval.
Final Thoughts
The Savings Deposit Program offers a unique opportunity for service members to grow their savings during deployment, with an unmatched 10% annual interest rate. By leveraging this program, military personnel can secure a financial boost that supports their goals and provides peace of mind. If you're eligible, consult your finance office to start your SDP journey and take advantage of this valuable benefit.