How to Make Savings Deposit Program (SDP) Withdrawals

The military Savings Deposit Program (SDP) is one of the best places to invest money while deployed. It offers military members a guaranteed 10% return on investment, which is virtually unheard of in our current economy!

The Savings Deposit Program (SDP) has some unique rules. For example, it is only available to military members who are in a designated combat zone for a specified period of time, and except under limited circumstances, you cannot make withdrawals until you redeploy and are no longer eligible for the program. It is also worth noting that while your income in a combat zone is tax-free, interest earned in the SDP is taxable.  

How the SDP Withdrawal Process Works

Guaranteed 10% interest is almost too good to pass up, but before signing up for the Savings Deposit Program (SDP), you should understand how to make contributions and withdrawals.

Contributions are easy, simply visit your finance office, sign a few forms (or it may be done electronically, depending on your location), and you are good to go.

You can contribute up to your base pay in $5 increments until you reach the maximum contribution limit of $10,000. At that point, you can no longer make contributions.

Making withdrawals, however, is a different story. Except in emergency situations, contributions must remain in the SDP until you are no longer eligible to participate (typically until you redeploy to your home station or out of the combat zone).

When Can You Close Your SDP Account?

Participants are only eligible to close their SDP account and make withdrawals after they leave the combat zone. There are some exceptions for emergency withdrawals, and withdrawals of amounts above the $10,000 maximum.

Emergency withdrawals are allowed when the health or welfare of the participant or their dependent(s) necessitates withdrawal. Emergency withdrawals must be approved by the participant’s commanding officer. To request an emergency withdrawal, submit an askDFAS ticket and include an uploaded copy of the Commanding Officer’s authorization letter.

Members can also withdraw amounts over the $10,000 principal while they are in the deployed zone. This can only be done on a quarterly basis, as interest is assessed quarterly.

Interest accrues for 90 days after you leave the combat zone. Interest will continue to accrue for 90 days after you redeploy, so unless you need the money right away, it is a good idea to leave your contributions in your SDP account to continue earning interest. You can leave your funds in the account indefinitely, but you will only earn additional interest income for 90 days. So there is no point in leaving it there long term. If you do not request a withdrawal before the 120-day mark, your funds will automatically be deposited to your military pay account via direct deposit. 

How to Request a Savings Deposit Program Withdrawal

There are four methods for requesting an SDP withdrawal. MyPay is the fastest and most secure option and is recommended for most service members. Alternatively, requests can be submitted by e-mail, fax, or mail. 

• E-mail (SDP mailbox): [email protected]
• Faxed (“Attention: SDP”): (216) 522-5060
• Mail: see address below

DFAS- Cleveland Center (DFAS-CL)
ATTN: SDP
Special Claims
1240 East 9th St .
Cleveland, OH 44199-2055

Information Required for SDP Withdrawal

You must include your name, social security number, and the date you left the combat zone to prove your identity and verify you are eligible to withdraw your contributions. You must also provide information for the bank account you wish to send the money to.

Unless you opt for a paper check, your funds will be transferred electronically via an Electronic Funds Transfer (EFT). You will need to provide the bank name, routing number, account number, and the type of account (savings or checking). If you request a paper check you will need to provide a complete mailing address.

Tips for SDP Withdrawals

• Close your account and make sure that your allotment has stopped before requesting a withdrawal. You don’t want to continue sending money to the program after you make a withdrawal.
• MyPay is probably the fastest and most secure way to make your withdrawal. MyPay is on a secure internet connection and it limits the possibilities for manual errors made by requesting withdrawals manually via fax, e-mail, or traditional mail.
• MyPay also limits who sees your personal information. Faxes, traditional mail, and e-mail may be handled by several individuals and/or misplaced or routed to the wrong desk.
• Verify contact information before sending your SSN or other identifying information anywhere. Allowing your SSN into the wrong hands is poor OPSEC and opens you to potential identity theft.
• Opt for EFT transfer for withdrawals. Electronic funds transfers are faster and more secure than paper checks.

Additional SDP Resources and Contact Information

Based on how the military finance system operates, the information in this article is subject to change. For more information, contact the SDP Help Line before sending your personal information anywhere:

Toll-Free (US Only): 1-888-332-7411
Commercial: 216-522-5096
DSN: 580-5096
Fax: (Attention SDP): 216-522-5060
E-mail: [email protected]

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Ryan Guina

Ryan Guina is The Military Wallet's founder. He is a writer, small business owner, and entrepreneur. He served over six years on active duty in the USAF and is a current member of the Tennessee Air...

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