The Savings Deposit Program (SDP) is a valuable financial benefit available to eligible service members deployed to designated combat zones. This guide provides an overview of how the program works, who qualifies, how to manage deposits and withdrawals, and what to expect when closing an account. Whether you are preparing for deployment or currently serving in a combat zone, this will help you make the most of the SDP’s high-interest savings opportunity.
Savings Deposit Program (SDP) Eligibility and Participation
The Savings Deposit Program is designed to help eligible uniformed service members increase their savings while stationed in approved combat zones.
To take part in the SDP, a service member must:
- Be deployed in a designated combat zone and receiving Hostile Fire Pay.
- Serve either 30 continuous days or at least one day per month for three consecutive months.
Participants may deposit up to $10,000 and all funds in the account earn 10% interest per year.
Ending Enrollment
An SDP account can only be closed once the service member has left the combat zone. Interest continues to accumulate for up to 90 days after departure:
- If the 90-day mark falls on the final day of a month, interest is credited for that entire month.
- If it falls earlier in the month, interest is applied only through the end of the previous month.
Withdrawals
While still deployed, participants may request quarterly withdrawals of interest earned beyond the $10,000 principal.
Withdrawals of the deposited principal are only approved when necessary to protect the health or welfare of the service member or their dependents. These emergency withdrawals require the commanding officer’s authorization.
Requests may be submitted:
- ThroughmyPay
- By mail to:
DFAS–Cleveland Center (DFAS-CL)
ATTN: SDP – Special Claims
1240 East 9th St.
Cleveland, OH 44199-2055
Requirements for Distribution Requests
Before requesting a withdrawal, ensure the SDP allotment has been stopped.
The request must include:
- Full name, Social Security Number, and the date the member left the combat zone
- For EFT payments: bank name, routing number, account number, and whether it is a checking or savings account
- For paper checks: a complete and accurate mailing address
SDP Assistance
SD Help Line
- Toll-Free (U.S. only):1-888-332-7411
- Commercial:216-522-5096
- DSN: 580-5096
Account Statements
General Information
- Visit theSDP page on the DFAS websitefor additional details.
Why It Matters
Understanding tax implications helps maximize the overall financial value of the program and supports smarter long-term financial planning. Work with an expert military CPA to maximize all available tax advantages.
Resources
DoD/Military Pay – Savings Deposit Program (Official Federal Overview)