Calculating interest on the military deposit


Q. In making the military deposit, we have two years from the time it is due to make the payment without interest. After that, interest accrues until payment. Does the interest accrual start from the initial time it is owed (separation from military service), or does the interest accrual start at the end of the two-year interest-free mark?

A. It starts at the end of the interest-free period. There isn’t any look back.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

Leave A Reply