1. Careers
Send to a Friend via Email

Discuss in my forum

Savings Deposit Program

Special Savings Accounts for Combat Zones

By

Don't confuse this with the Thrift Savings Plan (TSP). TSP is available to everyone in the military. The Savings Deposit Program is available only to those serving in designated combat zones.

Military members deployed in combat zones, qualified hazardous duty areas, or certain contingency operations may deposit all or part of their unallotted pay into a DOD savings account up to $10,000 during a single deployment.

Interest accrues on the account 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. Members can designate the allotment amount in five-dollar increments.

The savings program is not new -- it provided Vietnam veterans a way to earn extra money while on their Southeast Asia tours. DOD reopened the program to Desert Storm troops in 1991, and extended it to troops in Bosnia in 1996. The program was further expanded in 1997, 2001, and 2003.

Eligibility

Service member must be receiving Hostile Fire/Imminent Danger Pay (HFP/IDP) and serving in a designated combat zone or in direct support of a combat zone for more than 30 consecutive days or for at least one day for each of three consecutive months. Designated SDP areas remain designated until the Undersecretary of Defense withdraws the designation or until the areas’ designation for Imminent Danger Pay terminates, whichever is first.

  • Effective 2 August 1990, members serving in the Persian Gulf Conflict to include the Arabian Peninsula to include the Persian Gulf (as defined by the Arabian Peninsula, the Strait of Hormuz, and that part of the Gulf of Oman which lies north of 25 degrees north latitude and 057-30 degrees east longitude), Bahrain, Iraq, Iran, Israel, Jordan, Kyrgyzstan, Kuwait, Lebanon, Oman, Pakistan, Qatar, Saudi Arabia, Tajikistan, Turkey, United Arab Emirates, Uzbekistan, and Yemen.

  • Effective 1 January 1996, members serving in Operation Joint Endeavor to include the Bosnia-Herzegovina, Croatia, Serbia, Montenegro, Slovenia, Macedonia, Hungary, and the air space thereof, or the waters of the Adriatic Sea of North of 40 degrees North, plus forces operational control/tactical control to Supreme Allied Commander, EUROPE for the purpose of executing Operation Joint Endeavor.

  • Effective 1 January 1997, members serving in Operation Joint Guard and, effective 20 June 1998, members serving in Operation Joint Forge to include the total land area of Bosnia-Herzegovina, Croatia, Serbia, Montenegro, Slovenia, Macedonia, Hungary, and the airspace thereof, or the waters of the Adriatic Sea north of 40 degrees North.

  • Effective 1 November 2001, members serving in Operation Enduring Freedom to include the total land area of Afghanistan, Pakistan, Kazakhstan, Kyrgyzstan, Qatar, Tajikistan, Turkmenistan, United Arab Emirates, and Uzbekistan. The waters of the red sea, the gulf of Oman, and the Arabian Sea (portion north of 10 degrees North latitude and 68 degrees East longitude) or in the airspace thereof.

  • Effective 1 February 2003, members serving in Operation Enduring Freedom\Iraqi Freedom to include the total land area of the Arabian Peninsula to include the Persian Gulf (as defined by the Arabian Peninsula, the Strait of Hormuz, and that part of the Gulf of Oman which lies north of 25 degrees north latitude and 057-30 degrees east longitude), Bahrain, Iraq, Iran, Israel, Jordan, Kyrgyzstan, Kuwait, Lebanon, Oman, Pakistan, Qatar, Saudi Arabia, Tajikistan, Turkey, United Arab Emirates, Uzbekistan, and Yemen.

Making a Deposit

Service members use the program by making deposits with their servicing finance battalion. Service members may begin making deposits on their 31st consecutive day in the designated area. Eligibility to make deposits terminates on the date of departure from theater. Active duty members may make deposits by cash, personal check, traveler’s check, money order or allotment. Reserve component members may make deposits by cash, personal check or money order only. Standing policies regarding personal check acceptance and regulatory restrictions regarding number and type of allotments apply.

All deposit amounts, regardless of depository method, must be made in $5 increments (e.g. $50, $65, $1005, not $1001.67). and cannot exceed a service member’s monthly-unallotted current pay and allowances (e.g. monthly net pay after all deductions and allotments; includes special pays and reenlistment bonus). More than one deposit via cash, personal check, traveler’s check, or money order may be made in a month but the cumulative total of the deposits cannot exceed the month’s unallotted pay and allowances.

  1. About.com
  2. Careers
  3. US Military
  4. Pay and Benefits
  5. Military Pay
  6. Savings Deposit Program for Military in Combat Zones

©2014 About.com. All rights reserved.