Money Monday

By Barbara O’Neill

What advice should Personal Finance Management Program (PFMP) staff provide about the Savings Deposit Program (SDP)?

Families facing a deployment may contribute savings to a SDP plan.

The Savings Deposit Program (SDP) is a special savings program for deployed service members. It guarantees 10% annual interest during a deployment and for up to three months after they return. Service members should consult with Personal Finance Management Program (PFMP) staff to find out what information is required to sign up because they can’t officially enroll in the program until they are actually deployed.

Also, it is a good idea to set up an account and start saving money before the deployment so there is an account standing by to transfer future SDP savings from during the period of deployment. PFMP staff should encourage service members to take advantage of the SDP because a guaranteed 10% return is an exceptional rate of return compared to the very low current interest rates offered on civilian savings accounts.

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This post was published on the Military Families Learning Network Blog on February 25, 2013.

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