Bottom Line Up Front (BLUF): The Savings Deposit Program (SDP) allows deployed military members to get a guaranteed 10% annual return on their deployed pay (up to $10,000 total).
Today, I want to briefly cover a special program for deployed military members (active duty, and guard/reserves on active orders): the Savings Deposit Program (SDP). This program allows you to invest up to 100% of your monthly pay while deployed and receive a guaranteed 10% APR return on your investment.
Eligibility Requirements:
- You must be Active Duty, or Guard/Reserves on active orders
- You must be deployed to: (1) a designated combat zone OR (2) receiving **Hostile Fire Pay (HFP) or Imminent Danger Pay (IDP) in a Qualified Hazardous Duty Area (QHDA) or designated direct support area of a combat zone.
Limitations & Conclusion:
- You must be deployed for 30 consecutive days, or 1 day in 3 consecutive months to start investing.
- You only earn interest for 90 days after you return from deployment.
- You cannot withdraw funds deposited until after you return from deployment, with a few exceptions. Usually, your money will be returned to you 120 days after you return from deployment
However, despite these limitations, there are few investments in existence that guarantee a 10% return. If you are deployed and have the money available, using this program beats the average return of the stock market (~7-8%), but without the volatility.
Conclusion:
If you deploy, investing the maximum amount you are allowed - as early as you are allowed - into SDP is a smart financial play. In addition, since your money continues to draw 10% interest for 90 days after you return from deployment, I’d also suggest leaving your money in at least that long.
The SDP is a benefit. If you can, use it.
For More Information:
If interested, reach out to your deployed finance office to sign up for this program.
If you have additional questions, you can also call the SDP customer service number at 1-888-332-7411, then option 4, then 3, then 2, and then 1 (as of 20 Apr 2022).
For more information about this program, the following resources provide additional details on how SDP works: