Military Savings Account Offers 10% Annual Returns
Posted: April 7, 2010
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Do you know anyone getting 10% interest on their savings accounts? You do – if you have military colleagues enrolled in the Savings Deposit Program.
You, too, can grow your nest egg at this unprecedented interest rate, while you are serving your country – and create a smooth financial foundation for you and your military family that’s waiting there when you return home. The Savings Deposit Program (SDP) is a great financial opportunity for service members to plan financial security while still on active duty.
For eligible military service members on active duty in designated combat zones, the Savings Deposit Program provides a guaranteed 10% interest rate on maximum deposits of $10,000. Your Savings Deposit Program account is qualified for the 10% interest rate from the time of your deployment, until 90 days after leaving the eligible combat territory.
KEEP YOUR COMBAT ZONE EARNINGS TAX-FREE
The Savings Deposit Program is also an excellent sanctuary from taxes on your military pay. If you’re in the 25% tax bracket (meaning you have taxable income over $33,950 on your individual return), keeping just $1,000 of your tax-free combat-zone pay in a Savings Deposit Program account saves you $250 in taxes. And it earns you 10% interest as well. An amount you specify of your military pay can be automatically deposited in your Savings Deposit Program account up to 120 days after leaving the combat zone. Your money can be withdrawn 90 days after leaving the combat zone.
QUALIFY AND APPLY FOR SAVINGS DEPOSIT PROGRAM
To be eligible, you must be serving in a designated combat zone or supporting operations, or receiving Hostile Fire Pay. In addition, service members must be deployed to combat zones for at least 30 consecutive days, or a minimum of one day in three consecutive months.
There are some restrictions on opening and closing Savings Deposit Program accounts. Once opened, the SDP account cannot be closed until you have left the combat zone. In order to withdraw more than $10,000 from your SDP, you must withdraw according to a quarterly schedule. Emergency withdrawals, however, may be authorized by your commanding officer. Savings Deposit Program accounts may be opened from any military finance office, after you are in the qualified combat zone. Visit your military finance office to take advantage of this unmatched military savings opportunity.
