Savings Deposit Program (SDP)
Benefit Fact Sheet
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.
Soldiers permanently or temporarily assigned to designated duty assignments outside of the United States are eligible to participate in the SDP. The Soldier must serve in the designated area for more than 30 days or at least one day in each of three consecutive months.
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.
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 (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. To request an emergency withdrawal, the member should submit an askDFAS ticket and include an uploaded copy of the Commanding Officer's authorization letter.
For more information about the Savings Deposit Program, please visit the local finance office or the Defense Finance and Accounting Service website:
DoD Financial Management Regulation: