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…
Advertising Disclosure.

Advertiser Disclosure: Opinions, reviews, analyses & recommendations are the author’s alone. This article may contain links from our advertisers. For more information, please see our Advertising Policy.

default image

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. Here are some more pros and cons of the Savings Deposit Program (SDP).

How to Make Savings Deposit Program (SDP) Withdrawals

Savings Deposit Program withdrawalGuaranteed 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).

How and When You Can Close Your Savings Deposit Program (SDP) Account

Participants are only eligible to close their SPD 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 max.

Emergency withdrawals are allowed when the health or welfare of the participant or his/her dependent(s) necessitates withdrawal. Emergency withdrawals must be approved by the participant’s commanding officer.

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 might not be a bad 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.

Savings Deposit Program (SDP) Withdrawal Procedures:

There are four methods for requesting an SPD withdrawal: Online via MyPay, or 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 resources:

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]

Get Instant Access
FREE Weekly Updates! Enter your information to join our mailing list.

Posted In:

About 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 Illinois Air National Guard.

Ryan started The Military Wallet in 2007 after separating from active duty military service and has been writing about financial, small business, and military benefits topics since then. He also writes about personal finance and investing at Cash Money Life.

Ryan uses Personal Capital to track and manage his finances. Personal Capital is a free software program that allows him to track his net worth, balance his investment portfolio, track his income and expenses, and much more. You can open a free Personal Capital account here.

Featured In: Ryan's writing has been featured in the following publications: Forbes, Military.com, US News & World Report, Yahoo Finance, Reserve & National Guard Magazine (print and online editions), Military Influencer Magazine, Cash Money Life, The Military Guide, USAA, Go Banking Rates, and many other publications.

Reader Interactions

Comments

    Leave A Comment:

    Comments:

    About the comments on this site:

    These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

    • Ryan Guina says

      Hello John,

      I am not sure. I recommend contacting DFAS for further information. That said, if this is an emergency, you may be able to withdraw the funds early.

      “Emergency withdrawals are allowed when the health or welfare of the participant or his/her dependent(s) necessitates withdrawal. Emergency withdrawals must be approved by the participant’s commanding officer. 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.”

      Best wishes.

    • Ryan Guina says

      Hello Dan, You will need to request the money from the SDP. They will transfer it to your account, usually within a few days. I wish you the best, and thank you for your service.

Load More Comments

The Military Wallet is a property of Three Creeks Media. Neither The Military Wallet nor Three Creeks Media are associated with or endorsed by the U.S. Departments of Defense or Veterans Affairs. The content on The Military Wallet is produced by Three Creeks Media, its partners, affiliates and contractors, any opinions or statements on The Military Wallet should not be attributed to the Dept. of Veterans Affairs, the Dept. of Defense or any governmental entity. If you have questions about Veteran programs offered through or by the Dept. of Veterans Affairs, please visit their website at va.gov. The content offered on The Military Wallet is for general informational purposes only and may not be relevant to any consumer’s specific situation, this content should not be construed as legal or financial advice. If you have questions of a specific nature consider consulting a financial professional, accountant or attorney to discuss. References to third-party products, rates and offers may change without notice.

Advertising Notice: The Military Wallet and Three Creeks Media, its parent and affiliate companies, may receive compensation through advertising placements on The Military Wallet; For any rankings or lists on this site, The Military Wallet may receive compensation from the companies being ranked and this compensation may affect how, where and in what order products and companies appear in the rankings and lists. If a ranking or list has a company noted to be a “partner” the indicated company is a corporate affiliate of The Military Wallet. No tables, rankings or lists are fully comprehensive and do not include all companies or available products.

Editorial Disclosure: Editorial content on The Military Wallet may include opinions. Any opinions are those of the author alone, and not those of an advertiser to the site nor of  The Military Wallet.