Earn 10 Percent on Your Money, Guaranteed!

We started this blog as a way of sharing information and resources. For the next couple of months, I'm going to work with subject matter experts from MOAA to bring you tidbits of information and nuggets gleaned from experience gained in the field. One of the things I'm beginning to learn is that there are so many programs out there that it's difficult to keep them straight and even more difficult to figure out which ones really are a good deal. So, in an effort to educate myself, I'm going to look into some of these programs and pass along what I find to you.

For instance, how much do you know about SDP?

Active duty servicemembers, reservists, and National Guard members who are serving in a combat zone, qualified hazardous duty zone, or are taking part in certain contingency operations may be qualified to participate in a Special Deposit Program. This program, which is sponsored by the DoD, guarantees 10 percent on funds deposited while a servicemember is deployed. That rate is three to 10 times higher than most banks and credit unions pay on deposit accounts and twice current one-year certificate of deposit yields.

Key program points include:
• qualifying service members can deposit up to $10,000 into the account during a single deployment via military pay allotment;
• allotments must be in $5 increments;
• deposited money earns a guaranteed 10 percent, compounded quarterly;
• the allotment can be stopped at any time;
• the money stays in the account until the deployment ends (although hardship withdrawal requests can be made); and
• if a servicemember already is deployed, an agent (spouse, parent, or other family member) with a special power of attorney can start the allotment.


This is an outstanding guaranteed investment opportunity and one that all deploying servicemembers should consider. To get more information, visit the Defense Finance and Accounting Service (DFAS) Web site or contact your unit financial specialist.