Military Savings Deposit Program (SDP): 10% on up to $10,000 while deployed
As of Oct. 15, 2026
Short answer: If you are deployed to a combat zone or a hostile-fire / imminent-danger-pay area outside the U.S., the military Savings Deposit Program (SDP) pays 10% a year on up to $10,000 (the rate the DoD regulation sets; the law caps it at 10%). You can start after 30 days in a row in the area. Interest keeps running for up to 90 days after you leave. The catch: while you are there, you can take money out only in an emergency. The top standard savings rate we track is 4.20% APY at EverBank (read 2026-10-12), about $420 a year on $10,000. SDP pays about $1,000 a year on a full $10,000, 5.80 points more.
Best move if you're deployed
If you are eligible: fill SDP to $10,000 first (deposits plus interest count toward the cap), and keep your emergency cash in a regular savings account you can reach. 10% beats the 4.20% top savings APY we track by 5.80 points, far more than the 3-point too-close line.
The math:
SDP at the cap: $10,000 × 10% = $1,000 a year (simple interest once the balance is $10,000; FMR 2.6.3)
Below the cap: each quarter adds 2.5% (3/12 of 10%) and that interest compounds (FMR 2.7.2)
EverBank: $10,000 × 4.20% ≈ $420 a year (rate read 2026-10-12; variable)
A best fit for the situation described, not financial advice or a buy/sell recommendation. Partner links never change a pick.
Your roadmap
Confirm you qualify with your finance office: 30 consecutive days (or 1 day for each 3 consecutive months) in a combat zone, or in an area where you get hostile fire / imminent danger pay.
Start deposits through your finance or disbursing office, or set up an allotment. Deposit by the 10th so that month counts.
Keep emergency money outside SDP, in an insured savings account (how much? · savings compared). SDP withdrawals need a real emergency and your commander's OK.
Fill to $10,000, then stop. Money above the cap earns nothing; interest over $10,000 can be withdrawn each quarter.
Plan your exit: interest stops 90 days after you leave the area. Withdraw then and move it where it keeps earning (CDs and Treasuries, savings, or your TSP). DFAS sends unclaimed money to your pay account after 120 days.
Report the interest on your taxes; SDP interest is taxable.
The rules at a glance
10% a yearRate: Interest accrues at 10 percent per annum, compounded quarterly by calendar quarter on the average quarterly balance.Source: DoD FMR Vol. 7A Ch. 51 · 10 U.S.C. § 1035
$10,000Interest cap: The most that earns interest is $10,000, counting deposits and interest together. Money above $10,000 earns nothing (except for members in a missing status). Once you hit $10,000, simple interest is paid on the $10,000 and that extra interest can be withdrawn each quarter.Source: DoD FMR Vol. 7A Ch. 51 · 10 U.S.C. § 1035
$5Smallest deposit: Deposits of $5 or more, from unallotted current pay and allowances. Advance pay and PCS/TDY travel allowances can't be deposited, and you can't save up back pay from before the deployment to deposit later.Source: DoD FMR Vol. 7A Ch. 51 · 10 U.S.C. § 1035
1st of the monthWhen interest starts: Deposits made on or before the 10th earn interest from the 1st of that month; deposits after the 10th start earning on the 1st of the next month.Source: DoD FMR Vol. 7A Ch. 51
90 days after you leaveWhen interest stops: Interest stops no later than 90 days after your eligibility ends (counted day for day; it runs through the last full month inside the 90 days).Source: DoD FMR Vol. 7A Ch. 51 · 10 U.S.C. § 1035
120 daysAutomatic payout: If you don't withdraw within 120 days after the qualifying duty ends, DFAS transfers the money to your military pay account.Source: DoD FMR Vol. 7A Ch. 51
Interest is taxableTaxes: The interest paid on SDP deposits is taxable.Source: DoD FMR Vol. 7A Ch. 51
Safe from debtsProtection: Deposits and interest are exempt from liability for the member's debts, including debts to the United States, and can't be forfeited by court-martial sentence.Source: 10 U.S.C. § 1035
Estimate your SDP interest
Follows the DoD regulation's method: each month earns 1/12 of 10% on up to $10,000; interest is added at the end of each calendar quarter; money above $10,000 (deposits plus interest) earns nothing.
Assumes each deposit is made by the 10th and your tour starts with a calendar quarter. DFAS's statement is the real number.
Show me the details
Who can use SDP
You are serving in an assignment outside the United States, its possessions and Puerto Rico for at least 30 consecutive days, or "1 day for each 3 consecutive months" (the regulation's wording, which covers repeat TDY trips).
And you are in a designated combat zone, or you qualify for hostile fire or imminent danger pay while in a qualified hazardous duty area or a designated direct support area of a combat zone.
The current list of combat zones, hazardous duty areas and direct support areas is kept in FMR Volume 7A Chapter 44 and on the DFAS website.
Deposits are made through your finance office or disbursing officer, or by allotment set up under your service's procedures.
An agent with your power of attorney can make deposits for you if the power of attorney says it covers starting, changing or stopping allotments.
If you are paid twice a month, you can combine mid-month and end-of-month pay into one deposit, as long as one month's deposits don't exceed one month's pay.
While you are still eligible, withdrawals are allowed only in an emergency, when your health or welfare or your dependents' would be at risk without it. Your commanding officer approves it.
Once your balance reaches $10,000, the interest that pushes it past $10,000 can be withdrawn each quarter.
If you are discharged to immediately reenlist, extend, or take a commission while still eligible, you can't withdraw yet.
After you leave the SDP area, interest runs up to 90 more days; withdraw after that. DFAS sends unclaimed money to your pay account after 120 days.
When your first deposit can be made (examples from the regulation)
FMR example: a member arriving in Pakistan (a direct support area and imminent danger pay location) on April 1, 2024 could make the first deposit on May 1, 2024, covering pay from April 1.
FMR example: a member TDY to Egypt's Sinai Peninsula (a hazardous duty area) on April 17–20, May 2–6 and June 19–25, 2024 could make the first deposit on June 20, 2024 for the pay earned on those days.
We read the official regulation and statute, not your orders. Your finance office decides whether you are eligible and when your clock starts.
The calculator is an estimate. It uses the FMR method (1/12 of 10% a month, added each calendar quarter, capped at $10,000) and assumes deposits made by the 10th and a deployment that starts with a calendar quarter. DFAS's statement is the real number.
Interest is taxable. We don't estimate your tax.
DFAS's own program page blocked our automated reader, so every figure here comes from the DoD regulation (May 2025) and 10 U.S.C. § 1035. If DFAS publishes a newer change, it wins.
Not financial advice. We republish the DoD regulation and federal law with dates and do math on numbers you type. Your finance office and DFAS decide eligibility, dates and the exact interest.
A Defense Department savings program for service members deployed to a combat zone or a hostile fire / imminent danger pay area outside the U.S. Deposits earn 10% a year, compounded quarterly, on up to $10,000 (deposits plus interest). It is set by 10 U.S.C. 1035 and DoD FMR Volume 7A, Chapter 51.
Who is eligible for SDP?
Members serving outside the U.S., its possessions and Puerto Rico for at least 30 consecutive days, or 1 day for each 3 consecutive months, in a designated combat zone, or while qualified for hostile fire or imminent danger pay in a qualified hazardous duty area or a direct support area of a combat zone (FMR 7A, 2.1).
How much interest does SDP pay?
10% a year, compounded quarterly, on up to $10,000. On a full $10,000 that is about $1,000 a year. Money above $10,000 earns nothing (except for members in a missing status).
Can I withdraw SDP money while deployed?
Only in an emergency that puts your or your dependents' health or welfare at risk, approved by your commanding officer. Interest above $10,000 can be withdrawn each quarter (FMR 7A, 2.9 and 2.12).
When does SDP interest stop?
No later than 90 days after your eligibility ends. If you don't withdraw within 120 days after the qualifying duty ends, DFAS moves the money to your military pay account (FMR 7A, 2.8.2 and 2.13).
Is SDP interest taxable?
Yes. The DoD regulation says interest paid on SDP deposits is taxable (FMR 7A, 2.6.4).
Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.