Despite the surging inflation, total member savings from Pag-IBIG MP2 surpassed ₱33 billion in 2022.[1] This marked a 57% growth from the ₱21.43 billion collected the previous year. With the possibility of a recession looming over Filipinos' heads,[2] it’s best to consider all possible options to grow your hard-earned money. Let’s walk you through everything you need to know about the MP2 Savings Program to understand why it’s an investment worth considering and how to get started. The Modified Pag-IBIG II, better known as MP2, is an optional savings program for current and former Pag-IBIG Fund members who want to grow their savings in addition to their Pag-IBIG regular savings. The MP2 program makes saving and investing money easy, affordable, and profitable for Filipinos. If you're not sure whether to open an MP2 account, check out some basic information about the savings program: Like any other investment vehicle, the MP2 Savings Program has a lot of benefits for its investors. Here’s what you need to know. The MP2 program can let you earn as much as 6% of your savings fund per year compared to other high-yield savings accounts. Check out this table comparing the interest rates of Pag-IBIG MP2 with the rates of banks. The MP2’s average daily balance to earn interest is computed by multiplying the minimum monthly remittance of ₱500 by 12 months. Although the total average daily balance required to earn interest is much higher in MP2 compared with other banks, the average annual interest is way higher. MP2 allows you to withdraw your dividends each year or to add them to your savings account to earn compounded interest. If you choose to withdraw it directly to your bank account, you can use the money to fund essentials or emergencies. On the other hand, if you have it compounded for five years, expect to earn more from your savings. Here’s a sample computation if you opt to compound the interest: First Year ₱5,776.68 - total earnings for 5 years First Year ₱3,797.85 - total earnings for 5 years Disclaimer: The computation above is a conservative estimate intended for comparison of your possible earnings from MP2 Savings (at 6.96% per annum dividend rate) and from bank savings (at 4% annual interest rate). This does not take into account the exact deductions (taxes or fees), additions, or exact interest earned imposed by banks and Pag-IBIG which vary within the maturity period. It’s important to note that earnings from bank savings are taxable while dividends earned from the MP2 program are tax-free and computed against 70% of your fund.[3] Although the MP2 savings can be maintained for five years, you still have the option to withdraw your money anytime in case of emergencies. Your savings are backed by the government, but they may be subject to a different computation scheme considering annual dividend performance and other factors. By filling out the online MP2 Savings registration form, you can automatically enroll and start paying your contributions anytime. A Pag-IBIG Fund member can have multiple MP2 Savings accounts at the same time. If there are benefits to this savings program, there are also drawbacks. Here are some things to take note of. Compared to bank savings which can be maintained for as long as you want, your MP2 savings mature in five years. You’ll need to open a new MP2 account again when your savings fund reaches maturity. Pag-IBIG automatically stops your dividend earnings if you opt not to claim your money after the five-year maturity period. You qualify for the MP2 savings program if you belong to any of the following groups: Inactive members who have stopped paying Pag-IBIG contributions may enroll in MP2 by resuming their payments until they reach the minimum 24-monthly contribution requirement. Not registered with the Pag-IBIG Fund yet? You can register online as a Pag-IBIG member[4] and pay contributions for at least 24 months before opening an MP2 savings account. You can apply for the MP2 savings program online or in person at a Pag-IBIG Fund office. Read on to learn how to open an MP2 savings account. Here are the steps to applying for the MP2 savings program online: If you have other transactions you need to complete at the nearest Pag-IBIG office, then you might as well open your MP2 savings account there. Make sure to check the Pag-IBIG office's operating hours as they can change anytime. Simply submit the following documents for your MP2 application: As soon as you're done with your MP2 enrollment, you can start saving under the investment program. You can either make a one-time lump sum payment or a monthly contribution of smaller amounts to your MP2 savings account. There are three major ways to pay your MP2 contribution: For employees, the best Pag-IBIG MP2 mode of payment is through salary deduction, as MP2 savings are automatically deducted from the salary and remitted to the MP2 account. For freelancers, entrepreneurs, and unemployed Pag-IBIG members, the most convenient payment mode is through third-party payment channels, especially online facilities. Whatever online payment facility you use, choose Modified Pag-IBIG 2 as your payment type and provide your MP2 account number. You may monitor your posted MP2 contributions through Virtual Pag-IBIG.[6] But before you can do that, you have to create a Virtual Pag-IBIG account first. After your Virtual Pag-IBIG account is activated, you can already verify your MP2 savings online. Here's how. The minimum amount you can save in your MP2 account is ₱500 per month. This makes Pag-IBIG's savings program one of the most affordable for Filipinos who want to start investing small. MP2 contributions paid by Pag-IBIG members are invested in Pag-IBIG housing loans (which earn interest paid by member-borrowers), government securities, and corporate bonds. Investing money in fixed securities makes the MP2 a less risky investment compared to stocks and other high-risk instruments. Read more: 12 Helpful Tips to Get Your Pag-IBIG Housing Loan Approved The annual MP2 dividends you'll receive will depend on the dividend rate set by Pag-IBIG for a particular year during your investment term. The annual rates vary depending on Pag-IBIG Fund’s financial performance and other factors. According to a sample MP2 computation at the Pag-IBIG website,[7] if you've been saving ₱500 from 2020 to 2024, you're likely to receive a total dividend of ₱5,718.75 (if you chose to get your dividends annually). Your total dividend will be higher (₱6,266.14) if you opt to get paid the lump sum after your MP2 account's five-year term. The final MP2 dividend rate for 2022 hasn't been announced yet as of this writing. But for 2021, it was 6%. You can claim your MP2 Savings after its five-year maturity through the Virtual Pag-IBIG facility. You can also claim it in person. Fill out the Application for Provident Benefits form[8] and submit it to the nearest Pag-IBIG Fund branch. Ideally, like in other investments, it's best to just let the funds in your MP2 account grow until your account matures. This way, you get to maximize your profits. However, an unfortunate life situation might make withdrawing your MP2 savings necessary. The Pag-IBIG Fund allows early withdrawal under any of the following scenarios: You may withdraw your savings for a reason other than those allowed by Pag-IBIG. But you'll only receive half of the total dividend earned (if you chose to receive dividends after five years) or only your contributions (if you chose the annual dividend payout option). Yes, you can open new MP2 savings accounts once your existing account matures. This is a good strategy if you wish to invest your money in the long term, like for retirement. Unclaimed MP2 savings after the five-year maturity will keep on earning dividends (based on the dividend rates of the Pag-IBIG Regular Savings Program). After two years, it will no longer earn dividends. You should just withdraw your contributions. Pag-IBIG allows for account pre-termination. However, the payouts differ depending on the circ*mstance: Investing in the Pag-IBIG MP2 program is a good way to build your savings and fund your financial goals in the future. It makes a great passive income source, too, as you let a small amount of money earn for you. By religiously contributing each month for five years, you actually build not just a savings fund but a good savings habit. And since it's backed by the government, you can rest assured that you won’t lose your money. Sources: DISCLAIMER: The opinions expressed by the writer are theirs alone, and do not reflect the opinions of Moneymax and/or its affiliates or any employee thereof. Neither Moneymax or its affiliates are responsible for the accuracy of any of the information supplied by the guest writer. The opinions expressed in this blog are for general informational purposes only and are intended to provide education about the financial industry. Nothing in this blog constitutes investment or financial advice or any recommendation that any security, portfolio of securities, investment product, transaction or investment strategy is suitable for any specific person. This material does not take into account your personal circ*mstances, finances, goals and/or objectives; all of which are unique to you. Readers must make an independent decision regarding investments or strategies mentioned on this blog or elsewhere on www.moneymax.ph. We strongly consider seeking advice from your own financial or investment adviser before taking any action. We do not make any representation or warranty as to the accuracy, completeness or correctness of the information set out in this article.What is Pag-IBIG MP2?
Pag-IBIG MP2 Savings Key Features
What are the Advantages of the MP2 Program?
1. High Annual Interest Rate and Low Required ADB
Savings Average Daily Balance to Earn Interest Average Annual Interest Rate Pag-IBIG MP2 ₱6,000 7.0000% BPI Regular Savings ₱5,000 0.0625% EastWest Bank Regular Savings ₱10,000 0.0125% PNB Debit Savings ₱10,000 0.1000% Land Bank ATM Savings ₱2,000 0.0500% China Bank ATM Savings ₱10,000 0.0125% UnionBank Regular Savings ₱25,000 0.1000% AUB Starter Savings ₱1,000 0.1000% Maybank Regular Savings ₱10,000 0.2500% PBCOM Regular Savings ₱5,000 0.1000% Robinsons Bank Regular Savings ₱10,000 0.1250% 2. Option to Withdraw Dividends Each Year or Compound for 5 Years
Pag-IBIG MP2 Bank
Second Year
Third Year
Fourth Year
Fifth Year
₱30,000 - total contribution for 5 years
Second Year
Third Year
Fourth Year
Fifth Year
₱30,000 - total contribution for 5 years3. You Can Withdraw Your Money Anytime
4. Government-Guaranteed
5. Easy Account Opening Online
6. Multiple MP2 Savings Accounts
What are the Risks of the MP2 Program?
1. Your Account Matures in 5 Years
2. You Won’t Earn Dividends After the 5-Year Lock-In Period
Who Can Enroll in the MP2 Program?
How to Apply for Pag-IBIG MP2
MP2 Online Enrollment Procedure
MP2 Manual Enrollment Procedure
Pag-IBIG MP2 Requirements
How to Invest in the MP2 Program
Modes of Payment
Where to Pay Your MP2 Contributions
Over-the-Counter Payment Centers:
Online Payment Channels:
Pag-IBIG MP2 Online Payment Channels Payment Methods Accepted Pag-IBIG Online Payment Facility Maya, Visa, Mastercard, and JCB credit cards GCash GCash wallet Coins.ph Coins.ph wallet Moneygment app Moneygment wallet, bank deposit, PayPal, ECPay, Dragonpay, 7-Eleven How Can I Check My MP2 Online?
MP2 Savings Program FAQs
1. How much is the Pag-IBIG MP2 contribution?
2. Where are contributions invested?
3. How much dividends will I earn from my MP2 savings?
4. What is the interest rate of MP2 in Pag-IBIG for 2022?
5. How will I receive my MP2 dividends?
6. Can I withdraw my MP2 savings before its maturity?
7. Can I enroll a new MP2 savings account after maturity?
8. What will happen if I don't claim my dividends?
9. What happens if I decide to pre-terminate my account?
Final Thoughts
How to Save Through the Pag-IBIG MP2 Savings Program (2024)
Table of Contents
What is Pag-IBIG MP2?
Pag-IBIG MP2 Savings Key Features
What are the Advantages of the MP2 Program?
1. High Annual Interest Rate and Low Required ADB
2. Option to Withdraw Dividends Each Year or Compound for 5 Years
3. You Can Withdraw Your Money Anytime
4. Government-Guaranteed
5. Easy Account Opening Online
6. Multiple MP2 Savings Accounts
What are the Risks of the MP2 Program?
1. Your Account Matures in 5 Years
2. You Won’t Earn Dividends After the 5-Year Lock-In Period
Who Can Enroll in the MP2 Program?
How to Apply for Pag-IBIG MP2
MP2 Online Enrollment Procedure
MP2 Manual Enrollment Procedure
How to Invest in the MP2 Program
Modes of Payment
Where to Pay Your MP2 Contributions
How Can I Check My MP2 Online?
MP2 Savings Program FAQs
1. How much is the Pag-IBIG MP2 contribution?
2. Where are contributions invested?
3. How much dividends will I earn from my MP2 savings?
4. What is the interest rate of MP2 in Pag-IBIG for 2022?
5. How will I receive my MP2 dividends?
6. Can I withdraw my MP2 savings before its maturity?
7. Can I enroll a new MP2 savings account after maturity?
8. What will happen if I don't claim my dividends?
9. What happens if I decide to pre-terminate my account?
Final Thoughts
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