Savings Deposit Program Savings Deposit Program (SDP) Formerly known as the Uniformed Services Deposit Program (USSDP), the SDP was established in 1990 to provide members of the armed forces serving outside the U.S. under arduous conditions an account in which to deposit money for savings purposes. In February 2003 the Office of the Under Secretary of Defense for Personnel and Readiness increased the SDP eligibility criteria to include all military members serving in an assignment outside the United States or its possessions in support of Operation Enduring Freedom in an area that has been designated a combat zone, or is in direct support of a combat zone. Anyone serving a minimum of 30 consecutive days in the designated operations area is eligible to make a deposit into an SDP. Once deployment is completed, the SDP allotment is no longer authorized. Until the date the Airman departs from the theater he/she may make a deposit into the fund. The amount of the deposit is limited to the Service member's un-allotted current pay and allowances, or the amount of money the Airman is entitled to receive on the payday immediately prior to the date of deposit, minus authorized deductions and allotments. The minimum deposit is $5.00 with all deposits to be made in multiples of 5 (if you can divide it by 5, you're good to go). The maximum amount on which 10% interest is computed is $10,000 principal and accrued interest combined. Above $10,000, interest will not accrue. While federal income earned in hazardous duty zones is tax-free, interest accrued on earnings deposited in the SDP is taxable. Why would you want to utilize this program over an alternate savings program? Because you will earn interest at the generous rate of 10 percent per year, compounded quarterly according to the calendar quarter. This equates to .83333% per month or 2.5% per three months on your average balance. Basically, the quarter begins at the first contribution and three months later interest accrues. Alternatively, many commercial savings institutions and banks offer only two to three per cent interest on personal savings accounts. Airmen who participate in the SDP may make deposits into the program via allotment from their pay or by a check or cash deposit through their local deployment area Financial Services Office. An Airman's spouse who has been granted special power of attorney may also start, stop or change an SDP allotment on behalf of the deployed member. What happens if you need the money from the account while you are deployed? Withdrawing money before leaving the combat zone is allowed with proof of emergency and a letter from the commander. Members departing an operation area will be required to withdraw the funds from their SDP within 90 days of the Airman's return to the U.S., but will continue to accrue interest for these 90 days. So, how can you sign up for the SDP? Visit your local finance office and ask to deposit money into the fund. Information can be accessed online at www.defenselink.mil DoD Document 7000.14 or call the Department of Defense Finance & Accounting Service at 1-800-624-7368.