Military Savings Deposit Program
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The U.S. government recognizes the great risk and sacrifices its soldiers willingly volunteer to take on, and it is giving something back in the form of the Military Savings Deposit Program. This program helps soldiers earn money to help get them going when they make their eventual return to civilian life.
Who Is Eligible For The Military Savings Deposit Program?Only soldiers currently serving in designated special operations, combat zones or hazardous duty areas are eligible for the Military Savings Deposit Program. Soldiers not in designated combat zones or one of the other qualifying groups should consider the Thrift Savings Plan as an option.
How Does The Military Savings Deposit Program Work?The Military Savings Deposit Program is a Department of Defense savings account set up for soldiers who can deposit as much of their unallotted pay into it, up to $10,000 per deployment. What’s terrific about this account is that it bears an interest rate of 10 percent compounded quarterly, a far better rate than you could get from any civilian savings account.
What Else Do You Need To Know About The Military Savings Deposit Program?Interest on your Military Savings Deposit earnings is taxable, so you’ll want to figure that in to your budgeting and be sure to report it. You can open the account and make deposits through your servicing finance battalion. You must serve over 30 consecutive days in your eligible zone before you can begin to take advantage of the plan and you may no longer make deposits from the day you depart from the eligible zone forward. Deposits may be made by allotment, personal or traveler’s checks, money orders or cash. All deposits must be made in $5 increments and must be equal to or lower than the soldier’s monthly-unallotted pay and allowances.
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