Understanding the Savings Deposit Program (SDP)

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  • Funds above $10,000 can be withdrawn quarterly while deployed.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

  1. Visit your service's admin/finance office with your Leave and Earnings Statement (LES).
  2. Decide on the contribution amount (minimum $5 per transaction).
  3. Open an SDP account and arrange deposits through allotments or direct contributions.
  4. 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.

Money Management | Saving