I've recently learned I'll be headed back out to Iraqistan (Iraq or Afghaninistan) for a year. Last time I deployed I didn't put any money in savings, although I still came back with 14k in the bank, it wasn't earning any interest like it would had I put it in savings. With 2% and 2.5% interest rates that most banks, even if I had put it in savings, it probably wouldn't have earned any substantial amount of money, but it's basically free money and every little bit counts. Okay, now for the question, what kind of savings plan could I put my money in while I'm down range so that it would gain a better interest rate than a standard savings account? Also, would the plan allow me to pull my money out after 1 year without consequence. I know some plans have penalties for pulling your money out too soon.
The SDP is the best i have heard. The DOD Savings Deposit Program (SDP) was established to provide members of the uniformed services serving in a designated combat zones the opportunity to build their financial savings. Amounts up to $10,000.00 may be deposited, earning 10% interest annually. Members must be receiving Hostile Fire Pay and be deployed for at least 30 consecutive days, or 1 day in each of 3 consecutive months in order to participate in the program.
For withdraw: Members may close their SDP accounts only after departing the combat zone. Interest will continue to accrue on the account up to 90 days after departure from the combat zone. Should the 90 day period end on any day other than the last day of a month, interest will accrue through the last day of the preceding month. If the 90-day period ends on the last day of a month, interest accrues for that month. Members in a combat zone may withdraw accrued interest over the $10,000.00 principal quarterly.
Withdrawals of funds on deposit may be made in an emergency only when the health or welfare of a member or dependents would be jeopardized if the withdrawal were not granted. Emergency withdrawals must be authorized by the members’ commanding officer.
Originally posted by SGT. T: I've recently learned I'll be headed back out to Iraqistan (Iraq or Afghaninistan) for a year. Last time I deployed I didn't put any money in savings, although I still came back with 14k in the bank, it wasn't earning any interest like it would had I put it in savings. With 2% and 2.5% interest rates that most banks, even if I had put it in savings, it probably wouldn't have earned any substantial amount of money, but it's basically free money and every little bit counts. Okay, now for the question, what kind of savings plan could I put my money in while I'm down range so that it would gain a better interest rate than a standard savings account? Also, would the plan allow me to pull my money out after 1 year without consequence. I know some plans have penalties for pulling your money out too soon.
If you are looking to just put money away in a "savings" account and just let it sit there (meaning you are no looking to invest or anything like that) may I suggest to put it in a money market, it earns more interest than a savings account and works pretty much like a checkings account. Also, try going to a credit union they have better rates than banks.
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Posts: 1193 | Location: Somewhere in the US | Registered: 13 September 2007
That's more or less what I'm trying to do. I plan on saving as much as I possibly can, so upon my return (God willing), my wife and I will have a nice chunk of change to begin investing and building a much more stable financial foundation. One question I do have is, what risk are associated with a money market? I'd like something that would allow me to pull all of my money out at the end of my 12 months if I wanted to.
if you want to get a high interest on your savings account without getting shafted for taking all your money out at once, open a savings account online. alot of banks pay better interest with online accounts because you manage your account yourself. i have a online savings account with 8.5% interest with Citi bank. i have an allotment going out to the account each month. and i did that myself as well on Mypay, you just have to know the banks routing # and your account #. too easy.
That's more or less what I'm trying to do. I plan on saving as much as I possibly can, so upon my return (God willing), my wife and I will have a nice chunk of change to begin investing and building a much more stable financial foundation. One question I do have is, what risk are associated with a money market? I'd like something that would allow me to pull all of my money out at the end of my 12 months if I wanted to.
That I know of a money market has no "risks" as lets say buying stocks...and when I had one I could move money in and out like a checkings account except I was getting more interest on the money market than a checking/savings account.
SDP? Is that like the TSP? I know a Soldier in the section that has one of those (cant remember which one right now) and she has to do the run around to get HER OWN MONEY! Has to get letters and everything just to take out and use her own money.
Lead by Example!!!
Posts: 1193 | Location: Somewhere in the US | Registered: 13 September 2007
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