There are special benefits for Servicemembers who are serving in a Combat Zone, and one of them is the DoD program called the Savings Deposit Program. It is specifically reserved for Servicemembers who are serving in an active combat zone, to assist and support them in saving money. Servicemembers who wish to participate in this program must be on active duty and serving in a Defense Department designated combat zone. With this program, Servicemembers can put deposits into an account and receive ten percent interest on their money. This is an excellent program that encourages active duty members serving in country to save their money, and gives them a high rate of interest and supports their efforts.
The program first began during the Vietnam War, and was created to allow Servicemembers serving at the time in Asia to be able to safely set aside their pay for their families while they were on active duty. The program was reactivated for Dessert Storm, and remains in effect today for Servicemembers serving in any combat zone around the world. A Servicemember is eligible for depositing in the program on the 31st day they are assigned to a combat zone.
Any Servicemember member serving in Afghanistan, Iraq, or other combat area is typically eligible for this program. Deposits can be made in any multiple of 5, such as $5 dollars, $25 dollars, or even $1,000 dollars. But for example, a deposit of $5.75 dollars would not work because it has to be in an even five dollar multiple. Soldiers can arrange to make a deposit using check, money order or cash. The deposit is limited only by the amount that the Servicemember earns each month, for example if you Earn $900 dollars in a month you cant deposit $1,000 dollars because that is more than you earn in a typical month.
Find the Military Career right for YOU ! Click here for more Information.
The nice thing about the program is that as a Servicemember in a combat zone you are able to designate someone else to make these deposits for you. You have to award power of attorney for financial matters to your designated agent, but otherwise the person can deposit any amount allowed by the rules mentioned earlier. Servicemembers and their families are allowed access to the money, but only in multiples of $5 dollars, the same as the deposit requirements.