Savings Deposit Program

Returning Troops Face Financial Challenges

As more and more of the troops return stateside, they face a variety of issues and challenges -- not the least of which are financial.

"Having gone through that not too long ago, there is certainly a financial aspect to that adjustment," says J.J. Montanaro, a certified financial planner practitioner with USAA, which specializes in financial products and services for military personnel and their families. Before entering the financial services industry, he served in the U.S. Army for six years on active duty, including spending 2005-06 in Afghanistan, and in 2009 retired as a lieutenant colonel in the U.S. Army Reserve.

"You are coming back and all of a sudden the taxes that weren't an issue while you were deployed are coming back into play," he says, referring to the suspension of income tax during active duty. "There are extra allowances you had while deployed that go away, and a lot of times there are reduced expenses while you are deployed."

All of these things can lead to necessary cash-flow adjustments, considering a potentially decreased income and likely increased expenses.

Montanaro estimates that for some enlisted men and women, combat pay could be reduced by as much as 25% once they return home.

Soldiers who participated in the Savings Deposit Program while serving in a combat zone will have 90 days to withdraw or transfer those accumulated assets once their tour of duty ends, and deposits must stop upon being transferred out of a combat zone. The SDP is a military-run savings account that offers 10% annual interest on deposits. decide that's just not good enough, that you have to do some risk-type investments. You don't, all of a sudden, want to be in an inappropriate investment if the markets happen to tank and you need that money. But it is human nature to be earning 10% and want to keep earning that 10% back."

If the deployed let go of managing household finances, they should be prepared to share those duties upon moving back home.

"One of the things for me when I came back was that, by necessity, while I was gone my wife was taking care of the business at home, such as paying bills and doing all the things you have to do on a day-to-day basis," Montanaro says. "When I came back, my inclination was that we would just go back to our normal roles, but that wasn't the case. I never got it back. There are bound to be some challenges in terms of who does what and who is responsible for things on the financial front.

Savings Deposit Plan | Army Wife Network

MilitaryByOwner Advertising, Inc.

In military terms, I might be referred to as a “salty” wife; meaning that I have multiple years of devoted support of my active duty husband and several deployments under the belt. So I was surprised to learn recently about the Savings Deposit Plan that is available to all service members deployed to combat zones.

This program is one that began back in the Vietnam War era and has continued through to the present day. This savings program is different from the Thrift Savings Plan, which many of you are likely utilizing. With the current deployment tempo of our military, this may be a great time to set aside the extra tax-free pay for something special on the other side of the deployment.

“The DOD Savings Deposit Program (SDP) was established to provide members of the uniformed services serving in designated combat zones the opportunity to build their financial savings.  Amounts up to $10,000.00 may be deposited, earning 10% interest per annum.

The uniformed services savings deposit program, report (to accompany H.R. 14875).

Developing and test marketing a small savings deposit program

Separated by Duty, United in Love, Guide to Long-Distance Relationships for Military Couples

Congressional Record Proceedings and Debates of the 108th Congress Second Session

To improve the uniformed services savings deposit program, report (to accompany H.R. 14875).