Managing Money During Deployment: Accounts, Allotments, and Power of Attorney

Deployment financial preparation is one of those tasks where doing it right before you leave saves significant stress during and after the deployment. Accounts that aren't set up correctly, bills that aren't automated, and financial authority that isn't documented can create real problems for you and your family.

Here's how to get it right.

Before You Leave: The Financial Checklist

Set up automatic payments for all recurring bills. Credit cards, utilities, insurance, auto loans, mortgage or rent — every bill that can be automated should be automated. A missed payment during deployment can ding your credit score and create stress for your spouse or family. Log into each account and set up autopay before you ship.

Review your allotments. Military allotments allow automatic deduction of a set amount from your paycheck to a designated account or creditor. If you're sending money home to a family member, setting up an allotment ensures the money arrives without requiring your manual action. Review allotments through your finance office or myPay (mypay.dfas.mil).

Check your life insurance coverage. Your SGLI (Servicemembers' Group Life Insurance) coverage is automatic, but ensure your beneficiary designations are current. SGLI provides up to $500,000 in coverage. Designations are managed through MGIB. Review and update before deployment.

Create or update your emergency fund. Both you and your family need access to cash. Establish a shared account with sufficient balance for 2–3 months of family expenses in case income disruption occurs.

Power of Attorney: Who Can Act on Your Behalf

A Power of Attorney (POA) authorizes another person (typically your spouse) to take financial, legal, and administrative actions on your behalf while you're unavailable.

General POA grants broad authority to act on your behalf in most matters. During deployment, this allows your spouse to sign contracts, manage bank accounts, sell vehicles, and handle legal matters.

Special/Limited POA grants specific authority for specific tasks (e.g., "authority to sell our vehicle at [address]" or "authority to manage bank accounts"). Useful when you need someone to handle a specific transaction.

JAG offices provide free POA preparation before deployment. Don't leave without one if you're married or have a designated person who will manage your affairs.

Critical: Prepare the POA before you leave. Creating a POA while deployed requires notarization at the embassy or through military channels, which is significantly more complicated.

SCRA Protections During Deployment

The Servicemembers Civil Relief Act provides specific protections that are especially relevant during deployment:

Interest rate cap: Pre-service or pre-deployment debt is capped at 6% interest. Request this from creditors with a copy of your orders.

Lease termination: If you're deploying for 90+ days, you can terminate a rental lease without penalty with 30 days' notice and a copy of your orders.

Civil proceedings: Courts must stay (pause) civil proceedings against you while you're deployed and unable to appear.

Creditor protections: Creditors cannot repossess property or foreclose on a home without a court order during your active duty service.

Banking Access During Deployment

Set up your spouse for full account access. Add them as a joint account holder, not just an authorized user, on primary checking and savings accounts. Joint account holders have full banking rights.

International banking. If deploying OCONUS, confirm your debit card works internationally and understand the ATM and transaction fees. Navy Federal and USAA both have excellent international banking — fee-free at most ATMs worldwide or with reimbursement programs.

Deployed Account. Some service members open a separate account specifically for deployment pay, letting savings accumulate without access until return. This is a discipline strategy, not a requirement.

Savings Deposit Program (SDP)

During combat zone deployment, you may be eligible for the Savings Deposit Program (SDP) — a DoD program that lets you deposit up to $10,000 during deployment at a guaranteed 10% annual interest rate (paid quarterly). This is significantly above any commercial savings rate and is a legitimate DoD benefit.

Enrollment is through your finance office and available during deployments that qualify for combat zone tax exclusion. If you're deploying to a qualifying combat zone, enroll in SDP. The 10% guaranteed return is exceptional.

Details at dfas.mil/MilitaryMembers/payentitlements/SDP.

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Sources: DFAS myPay (mypay.dfas.mil), SCRA (50 U.S.C. §§ 3901–4043), DoDI 1342.22 (SDP), SGLI information at benefits.va.gov/insurance/sgli.asp