military war zone ten percent saving program?

Question

ok, I am retired air force and during the 25 years I was in the af there was a program that paid ten percent interest on money deposited in a special military savings account. you were limited to how much you could put in and you only accrued ten percent while you were actually in the war zone itself. does that plan still exist?, what exactly are the rules? and how do we sign up for my younger wife's upcoming deployment to war?

thanks,

alan hickey

Answer 1

Yikes, don't know if that program is still around. I know that any $ she puts in her TSP while in a tax free zone will be tax free when she takes it out. And that is automatically notated on her W2 at the end of the year. It has a different designation that a regular TSP contribution.
Check with your wife's finance office or check with the AFRC (formerly Family Support). Usually the budget gurus in there will know.
Good luck!

Answer 2

Yes the program still exists. Its called the Savings Deposit program and has a 10K deposit limit on it that pays 10% annually while deployed to a combat zone.
The deposits can be made as one lump sum or as a monthly deposit.
She should be briefed on it at the MOB site, if not have her contact the Military pay office where ever she ends up.

Been there done that.