If you want to save money and gain interest bigger than what banks offer on your savings, you should definitely try Investing in Pag-IBIG – MP2 Voluntary Savings. I have saved about PHP 27,000 and recently received dividends of more than PHP 5,000. It’s safer, less risky, and your money can earn a lot. Learn how below!

When I say Pag-IBIG, it does not mean love but is a government agency in the Philippines known as HDMF. Aside from regular contributions or savings, they also offer voluntary savings: the MP2 or Modified Pag-IBIG 2. You can save every month and get your savings after 5 years when it matures. Read more below!

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What Is MP2?

The Modified Pag-Ibig 2 Savings is an addition to regular Pag-IBIG Savings for members. This savings program has a 5-year maturity and allows you to save more and earn higher dividends.

Who Can Save Under The MP2 Program?

Active Pag-IBIG Fund Members
Former Pag-IBIG Fund Members with monthly income or pension that has at least 24 monthly savings or contributions

How Much Should I Save?

You can save at least PHP 500. It can either be done monthly or one-time, even twice or thrice, depending on you as long as the minimum is PHP 500.

There is no limit. However, if you want to save more than PHP 500,000, you will need to remit it via manager’s check or personal check.

I had contributed PHP 500 every month for two years. In the third year, I deposited PHP 700 monthly. In the 4th year, I just had about two savings or contributions. I did not save additional money for the following months and the 5th year, but my account was still okay.

How Much Will I Earn?

Dividends for MP2 are higher than the regular ones and are tax-free. It’s from 70% of the agency’s annual net income.

For 2020, the dividend rate was 6.12%, in 2019, it was 7.23%, while last 2017, it was 8.11%. The rate was probably low for last year due to the pandemic. But for the previous 10 years, the lowest dividend rate is 4.63%.

For my 5 years contributions which were less than PHP 30,000, I earned more than PHP 5,000. How much more if you saved in a higher amount?

When Can I Receive My Savings And Dividends?

Upon full withdrawal of your MP2 Savings after its 5-year maturity period with your MP2 Dividends compounded annually
Through annual pay-out with your MP2 Dividends credited to your savings or checking account enrolled in any of Pag-IBIG Fund accredited banks.

Mine was mailed through a check less than a month after passing a claim form to the nearest Pag-IBIG office.

Can I Get It Before Its 5-year Maturity?

Yes, in cases of

Insanity or Total Disability
Separation of service due to health reasons
Death of any immediate family member
Retirement
Permanent departure from the Philippines
Unemployment due to lay-off or company closure
Critical illness of an immediate family member
Repatriation of an OFW
Other meritorious grounds

How To Apply For An MP2 Pag-IBIG Savings Online

STEP 1: Go to this link.

STEP 2: Enter your details. Click Submit when you are done.

STEP 3: Type the details asked.

For Preferred Payout, you can choose between annual or five years.
For Mode of Payment, employees can go with salary deduction. I chose another option (Pag-IBIG Collecting Partners) rather than the OTC.
Source of funds may be due to savings, income, sales, etc.

STEP 4: Click submit after reviewing.

STEP 5: You will then be given an MP2 Enrollment with your new MP2 Account Number.

STEP 6: You can start your contributions using your MP2 Account Number.

How To Apply For An MP2 Pag-IBIG Savings At The Nearest Pag-IBIG Center

If you want to do it the old-school way, here are the instructions.

STEP 1: You will need a valid ID and a Modified Pag-IBIG II Enrollment Form. Fill up the form appropriately.

STEP 2: Go to the nearest Pag-IBIG Branch. Submit your form.

STEP 3: Wait for an officer to enroll your account in their system. You will be given your MP2 Account Number. This is different from your Pag-IBIG MID No.

STEP 4: Once you have an account, you can start saving. You will need to submit your account number to the cashier or centers accepting MP2 Contributions.

How To Apply For An MP2 Pag-IBIG Savings If Employed

STEP 1: Go to your admin department and ask if they offer MP2 savings. In my previous company, we were asked if we were interested, and we listed our names.

STEP 2: Give your details to the in charge, and they will enroll you in an account.

STEP 3: The Company will enroll you in their system for automatic deduction. They will remit it monthly to Pag-IBIG.

In where I have worked before, I had a monthly deduction of PHP 500 from my pay as the company remits it to Pag-IBIG.

How To Contribute To The MP2 Savings Online?

Log in at the Virtual Pag-IBIG.

Go to Pay Online and choose “MP2” Savings. Enter the details and pay the amount. Minimum is PHP 500.00.

How Do I Check My Savings Or Contributions?

Log-in at the Virtual Pag-IBIG.

See your contributions at MP2 Savings under Products. After that, you can choose the MP2 Account you have.

How Do I Claim My Savings?

Prepare your Pag-IBIG Loyalty Card or 2 Valid IDs (original and photocopy) and fill up an Application for Provident Benefits (APB) Claim Form.

Go to the nearest Pag-IBIG Branch and pass your requirements.

Have them verify your savings and documents. I actually asked my officer if what I have contributed is the same in their system.

Once they have verified it, you can get it credited to your savings or checking account enrolled in Pag-IBIG, claim it in the office, or have it mailed by Check. I got mine through Phil Post, and I was only asked my ID when claiming it.

That’s it about Pag-IBIG’s MP2 Savings! It’s an excellent investment, especially if you have a bit of extra money after considering your expenses. It’s also safer as it’s a GOCC. I personally think it’s better than saving in a bank. Though the downside is that you can’t use the money immediately, but once claimed, you can use it for your needs.

About the Writer

Hey, I’m Lyza! I once was a person who just imagined going to places “one day” but decided to pursue my dreams. My first travel abroad was in Japan, solo, last 2018, and I fell in love with the experience. I aim to visit 10 countries before turning 30 and 2 new places in the Philippines every year. Besides traveling, I love organizing trips, taking pictures, reading, and making new friends. Follow my adventures through my Instagram.

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