Who is eligible to participate in the Savings Deposit Program?
Members of the Armed Forces serving in specified combat zones or in support of a contingency operation are authorized to make deposits. Service members must be in receipt of Hostile Fire Pay and be deployed for at least 30 consecutive days or at least 1 day in each of 3 consecutive months. Contact your Finance Office to verify your eligibility.
How may contributions be made?
Members may contribute up to 100% of their disposable (net) pay. Contributions may be made either by a savings allotment with a unique bank routing number, or by cash (or check) deposit. Make the deposit or start the allotment at your local pay office. When reviewing your statement, keep in mind that there may be a delay in the posting of cash deposits.
What is the maximum that I may deposit?
There is no limit on the amount that may be contributed; however no interest is paid on amounts exceeding $10,000.00. If you are depositing by allotment it will not stop automatically when the balance reaches $10,000.00. You must monitor the balance. You may request the allotment be stopped. Army, Navy, Air Force, and Marine members may also stop their SDP allotment in myPay from within the SDP Withdrawal Request option.
What is the interest rate?
The interest rate is 10% annually, earned at 2.5% per quarter. No interest is paid on amounts exceeding $10,000.00. Deposits made by the 10th of a month will earn interest from the 1st of that month. Deposits made after the 10th accrue interest from the first day of the following month. Your account will continue to earn interest for 90 days after leaving the combat zone. Combat zone departure must be posted in order for interest accrual to be correctly stopped.
Is interest taxable?
Yes, the interest is taxable. Combat zone rules do not apply. No federal or state tax is withheld. A 1099-INT is issued no later than January 31st for Savings Deposit Program interest. If you do not receive your 1099-INT in the mail you may contact Customer Support to request that it be reissued to you.
How may I withdraw the money in my account?
Use the SDP Withdrawal Request option in myPay located on a link at the top of the account statement. You may expect your EFT payment within five (5) to seven (7) business days after submission. Please allow for additional time if hard copy check is requested.
Who should I contact if I have questions about my Savings Deposit Program (SDP) account statement or1099-INT?
Contact the Centralized Customer Support Unit toll free at 1-888-DFAS411 or 1-888-332-7411, or commercial (216) 522-5096 (7:00 A.M. – 6:00 P.M. / Eastern time).