Looking into the SDP, it's not clear to me exactly how the interest accrues and whether or not is is taxable. Any assistance is appreciated!

    Savings Deposit Program
    byu/Puzzleheaded_Iron514 inMilitaryFinance



    Posted by Puzzleheaded_Iron514

    1 Comment

    1. Who cares if it’s taxable? It’s a 10% return. If your active duty and eligible for SDP your tax rate should be very low. 

      I believe it is taxable and you get a 1099-INT in January of the following year.

      Interest acrrues at an annual 10% rate and compounds quarterly. In practice, if you get $10,000 in there, you’ll see $83.33 added to the balance monthly. That adds up to $1,000 per year.

    Leave A Reply
    Share via