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10 Percent Savings Rates for the Military Savings Deposit Program (SDP)
 

10 Percent Savings Rates for the Military Savings Deposit Program (SDP)

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The government offers a savings program for active military members called the Military Savings Deposit Program (SDP). The current savings rate on the SDP is 10 percent which is one of the best savings rates out there, especially when average savings rates are at 0.07 percent and the highest savings account rates at banks are at 1.00 percent.

This is a great program for active military members to entice them to save. Unfortunately, there is a maximum dollar amount of $10,000 for the account that can earn a 10 percent savings rate. This maximum dollar amount doesn't apply to members that are in a "missing status."

There are many other restrictions on making deposits into the SDP account, including that the deposit may not be more than current pay and allowances. If you are an active military member you should invest in this account.

Getting a 10 percent rate on any deposit account is unheard of these days and we probably won't ever see savings account rates at 10 percent. If we do, inflation would also be very high and the country would be in economic trouble - think of the early 1970's when inflation was rampant.

The interest earned on the SDP account is taxable, which it shouldn't be if you ask me. Why not give our active military members tax free earnings on the account? Investors don't have to be taxed on triple free municipal bonds.

You can use our savings rates and money market rates tables to compare interest rates from many different banks.

Author: Stacy Everest
January 20th, 2013