Savings Deposit
Savings account.
The Department of Defense Savings Deposit Program is available to those serving in designated combat zones. Military members deployed in combat zones, qualified hazardous duty areas, or certain contingency operations may deposit all or part of their unallotted pay into a Department of Defense savings account up to $10,000 during a single deployment and earn a 10 percent interest rate. The Military Savings Deposit Program (SDP) is a DoD sponsored savings account that offers deployed military members a guaranteed return on investment of 10% interest, compounded quarterly. The SDP was originally started during the Vietnam War as an investment opportunity for veterans serving in Southeast Asia. The Savings Deposit Program If a combat deployment is in your future, be sure to learn about the Savings Deposit Program, a savings account that earns you 10% interest. An effective way to collect some savings, the Savings Deposit Program can help you and your family achieve your financial goals. The DoD Savings Deposit Program (SDP) was established to provide a place to deposit money for savings purposes to members of the Uniformed Services who serve in designated duty assignments outside the United States or its possessions. The choices include traditional or regular savings accounts, high-yield savings accounts, money market accounts, certificates of deposit, cash management accounts and specialty savings accounts.
A savings account is a deposit account in a bank or credit union that pays interest on your balance -- though some institutions require that you have at least a minimum amount in the account to qualify for earnings.
You can deposit and withdraw from savings accounts as you wish, but you can't transfer money from the account directly to other people or organizations.
While savings accounts typically pay interest at a lower rate than other bank accounts, that may not always be the case. Savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund.
You're covered up to $100,000 in each of three different categories of account in a single bank, or up to $250,000 if an account is a self-directed retirement account (IRA). Different branches of the same bank count as one bank.
Interest- The SDP provides Soldiers the opportunity to deposit money into a savings account with a higher interest rate than normal. On these accounts, interest accrues at an annual rate of 10% (per Executive Order 11298) and compounds quarterly. Although federal income earned in hazardous duty zones is tax-free, interest accrued on earnings deposited into the SDP is taxable.
Capital One Interest Rates Savings
Deposits -Eligible Soldiers may deposit all or part of their unallotted pay into a Department of Defense savings account. Up to $10,000 may be deposited in this account during each deployment. Unallotted pay is the amount of money a Soldier is entitled to receive less authorized deductions. Deposits cannot be less than $5.00 and must be in multiples of $5.00 and cannot exceed a Soldier’s monthly-unallotted current pay and allowances (e.g. monthly net pay after all deductions and allotments; includes special pays and reenlistment bonus). Soldiers are asked to contact their financial office to open the account and to make deposits. Deposits may be made in cash, by check or through allotment (AGR Soldiers only) (NOTE: Currently, the military pay system will only allow an allotment to process if the member is receiving Imminent Danger Pay (IDP of $225). Once started, allotments may be increased or decreased as your financial situation changes. The last day to make a deposit into the fund is the date of departure from the assignment. However, interest will accrue for up to 90 days after return from deployment.
Withdrawals - If a Soldier’s account contains over $10,000 due to interest the Soldier may make quarterly requests to withdraw the balance that exceeds $10,000. The $10,000 remains in the account until the Soldier’s eligibility terminates and the Soldier withdraws the remaining funds in entirety. Withdrawing the $10,000 before leaving the designated duty assignment is not authorized, unless there is an emergency. Emergency requests must be for the health and welfare of a member or their dependent and must be substantiated by a written request from the member's unit commander. The Soldier’s account will be closed and all funds returned to the Soldier via direct deposit to the military pay account 120 days after leaving the designated duty assignment. Soldiers may also request funds prior to the 120 day period via their myPay account for SDP participants. In addition, the following options are available for further support:
Savings Account Definition
Savings Deposit Calculator
Email to dfas.cleveland-oh.jfl.mbx.sdp-cle@mail.mil
Fax to 216-522-5060 'Attention: SDP'
By mail to DFAS-Cleveland Center (DFAS-CL), ATTN: SDP, Special Claims, 1240 East 9th St., Cleveland , OH 44199-2055