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.
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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.