I heard there is a special savings account for deployed servicemembers. Am I eligible?

Making Deposits

Deposits may be made in cash, by check, or through allotment. Once started, allotments may be increased or decreased as your financial situation changes. Once your account reaches a $10,000 balance, you may withdraw funds over $10,000 on a quarterly basis. Emergency withdrawal must be approved by your commanding officer who must determine that it is necessary for the health and welfare of you or your family. Deposits may not be more than your unallotted current pay and allowances. The maximum amount that can earn 10 percent interest is $10,000 (principal and accrued interest combined), so any amount greater than $10,000 in your SDP will earn no interest. The interest you earn on your SDP account is not tax-exempt.

Making Withdrawals

Your account will be closed, and all funds returned to you via direct deposit 120 days after leaving the combat zone. You cannot close your account until you have left the combat zone, although your money will continue to draw interest for 90 days once you’ve returned home or to your permanent duty station. If you want your funds before the 120-day period ends, your myPay account provides an automated request option for SDP participants.

Although not required, some banks and credit unions offer deployed servicemembers special interest-bearing accounts that may match the SDP rate. You should ask your financial institution if they have any special products available to you during deployment. You can find out more about the SDP at the Defense Finance and Accounting Service website

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