Friday, March 6, 2009

What is the Savings Deposit Program?

The DoD describes the Savings Deposit Program as "A safe way to save for those members serving in designated combat zones."  Basically, it's a savings account for the military with a really good interest rate.  Here's what you need to know.
  • Must be in the armed forces and receiving Hostile Fire Pay
  • Must be deployed 30 consecutive days or at least part of 3 consecutive months
  • Deposits may not be more than your unalloted pay and allowances for the given month.
  • 10% APY, compounded quarterly
  • Deposits must be in multiples of $5.00
  • Withdrawals may only be made when you leave the combat zone or in the event of an emergency (requires commander's approval)
  • However, if you have more than $10,000.00 in the account, the amount of $10K (the part not earning interest) may be withdrawn while still deployed
  • Interest will continue to accrue for up to 90 days after you leave the combat zone (so wait three months to withdraw the money! Or, redeploy within three months to keep it going.)
This is a really good deal, especially given current rates on savings accounts.


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