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Savings Deposit Program offers big savings

  • Published
  • By Staff Sgt. Lindsey Maurice
  • 386th Air Expeditionary Wing
SOUTHWEST ASIA --  While it's no secret many military members don't look forward to a deployed environment, there is one benefit Airmen can appreciate and that is an increased bank account.

Between hostile fire pay, combat zone tax exclusion, hardship duty pay, family separation allowance and a decrease in daily expenses; a military member's bank account can quickly grow.

In addition to these entitlements, there is one more to consider: the Savings Deposit Program.

Started in the Vietnam era, the SDP was established to provide military members serving within the area of responsibility the opportunity to boost their financial savings. The SDP allows military members to deposit up to $10,000, and earn 10 percent annual interest or 0.8333% per month.

"This is a great program for members to take advantage of," said Staff Sgt. Matthew Sanderson, 386th Air Expeditionary Wing Finance office. "Compared to the current market, it's one of the better savings programs out there today."

With a typical checking account earning less than one percent annually and an average savings or money market account earning less than two percent annually, the difference in savings through the SDP is obvious.

The SDP is only available while members are serving in the designated combat zones. However, according to Staff Sgt. Chin Woo Mun, 386th AEW Finance office, "if a member wants to save money for the near future, but doesn't need it right away, then the SDP is a decent option to pursue while deployed."

In order to be eligible to make an initial deposit, Airmen must be on deployment orders and in a designated area for more than 30 days with a total duration in the AOR of at least 90 days. Eligibility ends when a member departs the AOR. To start an SDP account, members must bring a copy of their orders to the Finance Office, located in Building 592, and fill out the SDP application.

"Deposits can be made by allotment, check, cash or the Eagle Cash card and must be in multiples of $5, which is also the minimum amount a member can deposit," said Sergeant Sanderson.

Deposits cannot be more than a member's unalloted pay and allowances per month. That is, more than the net "take home" pay amount. If an Airman makes a deposit by allotment, the allotment should be stopped prior to closing the account or when the member departs the AOR.

Deposits made by or on the 10th of the month, will earn interest from the first of that month. Deposits made after the 10th of the month will start to accrue interest the following month. Interest will not accrue on balances over $10,000. For example, if an Airman deployed in an eligible area for one year deposits $13,000 in his or her SDP account, a maximum of $1,000 will be earned in interest per year.

"Airmen cannot withdraw money from their SDP account until after they depart the AOR," said Sergeant Sanderson. "Members can, however, leave their money in the account and it will continue to accrue interest for 90 days after they return home."

When the member wants to request withdrawal of cash, all they have to do is log into the myPay Web site and click on the SDP option to make the request, he said. Interest earned on SDP is considered taxable income.

For more information on the SDP or to obtain a contribution form, visit the finance office or call 442-2233.