Let’s be real—life in the military comes with a unique set of financial challenges. Whether it’s frequent moves, deployments, or juggling family needs, managing money isn’t always straightforward.
But here’s the good news: the military offers a variety of benefits, tax breaks, and protections designed to ease that burden.
You’re not alone if you haven’t fully tapped into all these perks—it’s common for service members and their families to miss out simply because the benefits aren’t always front and center.
The goal here is to highlight 10 of the best financial benefits available to military members, so you can make the most of them and strengthen your family’s financial future.
1. Thrift Savings Plan: A Low-Cost Retirement-Savings Vehicle
The Thrift Savings Plan (TSP) is like a 401(k) but designed for service members with rock-bottom fees—only 0.042% annually! That means more of your money stays invested, working hard for your future.
You can choose from five index funds or a target-date fund that adjusts as retirement nears.
For 2025, you can contribute up to $23,500—or up to $69,000 if deployed in a combat zone. If you’re 50 or older, you can add even more with catch-up contributions, and there’s a Roth option with no income limits. That’s a powerful way to build a nest egg.
2. Savings Deposit Program: Earn 10% Interest While Deployed
This is a hidden gem: when deployed, you can put up to $10,000 into the Savings Deposit Program and earn a guaranteed 10% annual interest—compounded monthly and paid quarterly!
Compare that to the average 0.41% interest on regular savings accounts. Plus, your combat pay is tax-free, so it’s a smart, safe way to boost savings during deployment.
3. Tax-Free Roth IRA Contributions from Combat Pay
Normally, Roth IRA contributions come from taxed income. But if you’re receiving tax-free combat pay, those Roth contributions are tax-free too—meaning your money grows and comes out tax-free.
The 2025 contribution limit is $23,500, plus catch-up contributions for those over 50, and you can even contribute for a non-working spouse. That’s a double win for your retirement savings.
4. Post 9/11 GI Bill: Free College for You or Your Family
Education costs can be overwhelming, but the Post 9/11 GI Bill can cover full in-state tuition for up to four years, with housing and book allowances. You can use it for undergrad, graduate, vocational, or trade programs.
Even better: longtime service members can transfer these benefits to spouses or children. It’s a huge financial relief for military families.
5. Servicemembers’ Group Life Insurance (SGLI): Low-Cost Life Coverage
SGLI offers up to $500,000 in life insurance at rates far below what you’d pay for comparable civilian policies. For example, $420 per year for $500,000 coverage, regardless of health or deployment status. Plus, coverage is available for spouses at very low cost. It’s peace of mind that won’t break your budget.
6. State Tax Breaks: Keep Your Legal Residence Tax-Friendly
If you’re stationed outside your home state, you can often keep your legal residence there for tax purposes—especially if your state has no income tax.
This means you might avoid paying state taxes in your duty station, helping keep more money in your pocket. Plus, spouses may also keep the same legal residence.
Read Also: EV Charger Tax Credit: Who Qualifies and How Much You Can Save?
7. Loan Caps and Lease Protections Under the Servicemembers Civil Relief Act
If you had loans or leases before going on active duty, you’re protected by a 6% interest cap on those debts. This helps lower monthly payments when your income drops due to deployment.
Plus, you have the right to terminate leases if you move for military orders lasting 90 days or more. These legal protections ease financial stress during deployment.
8. VA Loans: Buy a Home With No Down Payment
VA Loans allow you to purchase a home without a down payment, with competitive interest rates and no private mortgage insurance.
While great for buying, be cautious: putting little down can mean owing more than your home is worth if prices fall. Resources like Fannie Mae’s military page offer advice if you’re underwater on your mortgage.
Read Also: VA Announces Big Change This May Impacting Millions of Veterans
9. Tax-Free Military Housing Allowance
Your Basic Allowance for Housing (BAH) is tax-free and can cover all or part of your rent or mortgage. The amount varies by rank, location, and family size.
This can be a significant monthly financial boost, helping you afford housing without extra tax burdens.
10. Low-Interest Emergency Loans From Your Branch
Each military branch offers emergency relief funds with interest-free or low-interest loans for unexpected expenses. Whether through Army Emergency Relief, Navy-Marine Corps Relief Society, or Air Force Aid Society, help is available when you need it.
Avoid payday lenders and other predatory loans often targeting military families near bases.
Bottom Line: Small Steps Add Up to Big Financial Gains
Military life throws a lot at you, and managing money isn’t always easy. But these benefits exist to help—you just need to know about them and take advantage. Start by reviewing your options, talking to a financial counselor, and making a plan to use these resources.
Remember, building financial security isn’t about perfection overnight. It’s about small, steady moves that grow your stability and peace of mind over time. Your family’s financial future is worth the effort—so why wait?
This article was written by Loretta James. AI tools were used lightly for grammar and formatting, but the ideas, words, and edits are all mine.
