WASHINGTON (, March 3, 2004) -- A Department of Defense program helps deployed troops tuck up to $10,000 of their income away and earn a guaranteed 10 percent interest on their savings annually.

Troops can participate in the Savings Deposit Program if they are assigned outside the United States and receiving Hostile Fire and Imminent Danger Pay. Service members must serve 30 consecutive days in that assignment before making deposits into the fund.

"We have our Soldiers start the program while in theater," said 1st Sgt. Edward Menke, from 125th Finance Battalion, Schofield Barracks, Hawaii. Soldiers from the 25th Infantry Division (Light) out of Hawaii are currently serving in Iraq and Afghanistan. Menke said that when he informs Soldiers and their families of the benefits of the Savings Deposit Program he tells them to look at their bank statements. If they are earning less than 10 percent interest on their savings, he tells them to look into the program.

"Spouses are really receptive to the program," Menke said. "Their savings will earn a guaranteed 2.5 percent interest quarterly."

Nearly 10,000 Soldiers are currently participating in the program, said Roger Castillo, the program manager for the Savings Deposit Program. The last day to make a deposit into the fund is the date of departure from theater. However interest will accrue up to 90 days after redeployment unless a withdrawal is requested, according to a DFAS fact sheet.

Service members can contribute more than $10,000, but interest will not accrue on any amount over the cap, Castillo said. If the account exceeds $10,000, the service member may make quarterly withdrawals, until his eligibility to make deposits terminates. Then he must withdraw the remaining funds in its entirety, the fact sheet stated.

Withdrawing the money before redeploying is not authorized unless, the service member needs to make an emergency withdrawal. Emergency requests must be for the heath and welfare of a member or his family member, and must be substantiated by a written request from the member’s commander, Castillo said.

DFAS will post the SDP balance of active-component members to their Leave and Earnings Statement.

The fund was started in August 1990 for members who were serving in the Persian Gulf Conflict, and Soldiers fighting in Operation Iraqi Freedom were added to those eligible to participate in 2003. For more information service members should contact their finance battalion, Castillo said.