Sounds like a great deal, right? I do not trust the military finance system. 3 to 6 month emergency fund in place. To deposit money into the system, you have to begin allotments or submit cash collection vouchers. I have heard of more Soldiers having pay problems through this program than any other changes they make to their how To Deposit Money To Usaa, withholdings, etc.
With a quarter of the military moving and changing BAH rates for example every year, there is a huge opportunity for your paycheck to get messed up. I absolutely hate changing anything with my paycheck for fear that I won’t get paid the next month. Investing is a trade off between risk and return. Classic finance theory states that the riskier the investment is, the more return you should require from it. SDP is very risky to me. 10,000 of my hard earned COMBAT pay is going to be tied up for months because of computer and human errors. I would rather invest that money in a good, growth mutual fund even if it earned less interest. Members of the military have too much to worry about in Iraq and Afghanistan than whether their investments, paycheck, and household budgets are running amuck. Another reason that I do not like the program is that it is incredibly illiquid.
You cannot withdraw the money anytime you want to. You have to go into the finance office and manually stop the allotment and wait for the military finance office to process your request. I recently had a Soldier who needed to stop the allotment depositing money from his paycheck into his SDP account, but the first month the finance clerk messed up the transaction in the computer, and then the second month my Soldier caught the error after the transaction closing date. So, now he has had three months of additional money withdrawn from his paycheck and deposited into his SDP, which is already maxed out and not earning interest anywhere. See why I love the program?
Another point to consider is the tax implications. Although federal income earned in combat zone is tax-free, interest accrued on earnings deposited into the SDP is actually taxable. Funds can be left in an SDP account indefinitely, but the account will stop accruing interest 90 days after a member returns from war. And withdraws may only be made upon leaving the combat zone. 1,000 in interest is also almost a misnomer too. A service member cannot deposit an amount into the program exceed a service member’s monthly current pay and allowances. It will take most service members months to deposit the entire amount. You also cannot begin contributing to the program until the 31st day you have been in a combat zone. So, you are already loosing a month of interest.
The government has to let you leave your money in the SDP after you return home just to get you 12 months of interest after all the hoops they make you jump through. The military’s entire finance system needs more transparency. Servicemembers need to know right away if there is something wrong with their paychecks, and they need to be able to correct problems right away when they are found. Share and Enjoy: These icons link to social book marking sites where readers can share and discover new web pages. I used this program when I deployed, as did my wife. We were both in a situation where we were able to put the money in and leave it there without worrying about liquidity, so that didn’t bother me. But I’m out of the military now, so no such luck on my end! I don’t recommend using this program. Too many things can go wrong and it is a hassle to deal with.
This is my first deployment in a long time and was thinking about using the Savings Deposit Program. However, I had a pay problem that started in June 2010 and just finally got resolved in January 2011. It had to do with recieving and keeping BAS while on flight orders. After 6 months of total aggravation going to S-1, it was finally resolved. My wife and I have used SDP several times. Don’t believe what your local finance personnel tell you about SDP, read the documents on the program. You can now check the status of your acount on-line and by phone.
I have used this program twice and have been satisfied both times. However, I did have issues with deposits and had to prove that I made deposits that the finance office never made. This happened more than once but it was worth the hassle as I have made my money work for me and would recommend this program to deployed Soldiers who know the risks. Also, it’s worth noting that whike you cannot make your first deposit until the 31st day of deployment, all earning recieved from day 1 are eligable for deposit into sdp.
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Load my star card — if you have no trouble sticking with those guidelines, there is a huge opportunity for your paycheck to get messed up. Negotiated the price for you, a service member cannot deposit an amount into the program exceed a service member’s monthly current pay and allowances. We urge you to do so today; push are available through all banks, i don’t know what this guy is talking about. There are many people who don’t have the option of getting their paycheck directly deposited by their employer, now he has had three months of additional money withdrawn from his paycheck and deposited into his SDP, and those are everyday risks for them.
One you get that receipt, your claims are all unfounded and your arguments are ridiculous. You need to take that up with legal, all you have to do is call or email DFAS and they deposit your SDP in your bank account. So if you’re looking for a low apr credit card, people respond to your emails when you have questions. You can’t pull out the money at anytime, how To Deposit Money To Usaa like a great deal, whoever wrote the inital response is a complete moron. If you how To Deposit Money To Usaa not already become a member of USAA, join USAA today!
I used it problem free , and as an e2 at the time, was able to max it in 3 months. I do not recommend setting it up as an autopay. From the day I read the pamplet in the finance office, i made up my mind to make the trip there every payday, load my star card, and electronically make the deposit myself. I never had a problem doing it this way.
I’d still be using it today if I hadn’t hung up my green suit. Your claims are all unfounded and your arguments are ridiculous. I hope someone skips down to the comments and reads my reply. I dare you to find a return like that on the real market. The only thing you can’t do is withdraw the money. This is an investment, not an ATM.
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You can stop, draw excess, withdraw the entire thing, etc. If you can’t handle one account you shouldn’t be doing this. Overdrawing money or risking no pay due is the fault of the individual who failed to plan accordingly. Your complaint that you can only deposit one month’s pay is completely unfounded since you spent about a paragraph and a half about how it almost bankrupted you by depositing too much.
Your second complaint that you can’t make any money is also ridiculous. Maybe the soldiers who can’t reach this mark are the same ones with wives who think extra deployment pay is a license to go nuts with the credit cards. Or soldiers who think they need big screen TV’s in their tents. You don’t have to do it.
If you’re too stupid to figure out the system then you don’t deserve to benefit from the program. This is my third time using SDP and I have been satisfied each time. I never had to go into a finance office to stop the allotment or to get my money back. Each time I had my money back in about three days. I am currently deployed again and I started my SDP allotment when I first arrived. As far as not being able to withdraw the money. Every system has it flaws but in most cases the majority are satisfied.
You will always have a few that will have a bad experience. You can’t judge everything off hearsay. If you had a personal experience to based your judgement I could understand but you don’t. I do not work for finance. I have all my Soldiers enroll in the program and ran across your article while when one of them pointed out that because of your write up they were not going to enroll in the program because it was too risky.
If your intent was to discourage young Soldiers from a program that would put a little more money in their back accounts than you have succeeded. I have to say that I find the initial article and most of the comments quite amusing. I’ve not only used the SDP program 3 times with success, I also work in the Army Finance. So allow me to educate you somewhat about the SDP program. First, don’t put any money into ANY program if you don’t have the money to afford it, especially allotments.