Take Advantage Of The Savings Deposit Program

Marie is calling because her husband is currently deployed. They're eligible for the Savings Deposit Program. Should they invest it in the SDP or something else?

QUESTION: Marie in Colorado Springs is calling because her husband is currently deployed. They’re eligible for the Savings Deposit Program. Should they invest it in the SDP or something else?

ANSWER: I would do the SDP because the rate’s 10%. I would definitely do the SDP before I did anything else. You’ll get 5% for the six months, and it’s a guaranteed 5% in that period of time. It’s available only to you, and you’re sitting in the middle of a waiver of income tax due to combat pay and all those kinds of things. It’s a good plan for the military.