Pag-IBIG MP2: What it is and How to Invest in this Government Savings Program 2023

In 2022, despite the high inflation rates, the total savings of Pag-IBIG MP2 members exceeded ₱33 billion, indicating a significant increase of 57% from the previous year’s collection of ₱21.43 billion.

Compute your estimated earnings and total savings with our Pag-Ibig Mp2 Calculator

Considering the possibility of an economic downturn affecting Filipinos, it is prudent to explore all available avenues for increasing one’s savings. In this regard, we will guide you through the essential information on the MP2 Savings Program, including why it is a worthwhile investment and the steps required to commence participation.

What is Pag-IBIG MP2?

The Modified Pag-IBIG II, commonly referred to as MP2, is a voluntary savings scheme offered to both present and past members of the Pag-IBIG Fund who desire to increase their savings beyond their regular Pag-IBIG savings.

Pag-IBIG MP2 Savings Key Features

The MP2 program offers an easy, affordable, and profitable way for Filipinos to save and invest their money. If you’re considering opening an MP2 account, here are some key details about the savings program:

  • Affordable investment: You can start investing in MP2 with as little as ₱500 per month, and there are no penalties if you miss contributions for certain months (though regular contributions are encouraged).
  • Government-guaranteed: Your principal is guaranteed by the Philippine government, so you won’t lose your savings.
  • Tax-free dividends: You’ll receive your MP2 dividends without any deductions for taxes, either annually or after five years.
  • High dividend rates: The interest rate for MP2 is up to 6% per year, which is higher than the rates for regular Pag-IBIG savings, bank accounts, time deposits, and other investment options.
  • No savings limit: You can save as much money in your MP2 account as you want, as long as you can afford it. For one-time payments exceeding ₱500,000, a personal or manager’s check is required.
  • Multiple accounts: You can open multiple MP2 accounts to save for different goals, such as emergencies, tuition, travel, retirement, and more.
  • Five-year maturity: Your MP2 savings will mature in five years, after which you can withdraw your money. This makes MP2 ideal for medium-term investment goals.

What are the Advantages of the MP2 Program?

Similar to other investment options, the MP2 Savings Program offers numerous advantages to its investors. Below are some key points to consider:

Competitive Annual Interest Rate and Lower ADB Requirement The MP2 program offers a potential annual interest rate of up to 6% on your savings, which is higher compared to other high-yield savings accounts. You can refer to this table for a comparison of interest rates between Pag-IBIG MP2 and banks.

To qualify for interest earnings in the MP2 program, the average daily balance is calculated by multiplying the minimum monthly contribution of ₱500 by 12 months. Despite the higher total average daily balance requirement compared to other banks, the MP2 offers significantly higher annual interest rates.

2. Option to Withdraw Dividends Each Year or Compound for 5 Years 

MP2 provides you with two options for your dividends: you can withdraw them annually or add them to your savings account to gain compounded interest. If you opt to withdraw the money directly to your bank account, you can use it for necessary expenses or unexpected situations. Alternatively, if you choose to compound the dividends for a period of five years, you can anticipate earning a higher return on your savings.

The statement is providing a cautious calculation for comparing potential earnings from investing in MP2 Savings, which has a 6.96% annual dividend rate, to earnings from bank savings, which have a 4% annual interest rate. It is important to note that the estimate does not include deductions, fees, or exact interest earned from banks and Pag-IBIG, which may vary during the maturity period. Additionally, it is important to consider that earnings from bank savings are subject to taxes, while dividends earned from the MP2 program are tax-free and calculated against 70% of the invested funds.

3. You Can Withdraw Your Money Anytime

Even though you can keep your savings in the MP2 program for up to five years, you still have the flexibility to withdraw your funds at any time in case of unexpected events.

 4.Guaranteed by the Government Your savings are secured by the government, although their calculation may vary depending on annual dividend performance and other factors.

 5.Convenient Online Account Opening You can easily open an MP2 Savings account online by completing the registration form and begin contributing at any time.

More than One MP2 Savings Account Pag-IBIG Fund members are allowed to have several MP2 Savings accounts concurrently.

what are the Risks of the MP2 Program?

This savings program has both advantages and disadvantages. The following are some points to consider.

1.Your Account  Matures in 5 Years

Bank savings accounts have no specific maturity period and can be held for an indefinite amount of time. In contrast, MP2 savings accounts have a maturity period of five years, after which you will need to open a new account if you wish to continue saving.

2. You Won’t Earn Dividends After the 5-Year Lock-In Period

If you choose not to withdraw your money after the five-year maturity period, Pag-IBIG will cease your dividend earnings automatically.

Who Can Enroll in the MP2 Program?

To be eligible for the MP2 savings program, you must meet one of the following criteria:

You must be an active member of the Pag-IBIG Fund and have made at least one monthly contribution within the last six months.

  1. If you are a former member of the Pag-IBIG Fund and have other sources of monthly income, you must have made at least 24 monthly contributions to be eligible.
  2. Pensioners, regardless of age, who have made at least 24 monthly contributions to the Pag-IBIG Fund before retirement are also eligible.
  3. Natural-born Filipinos who have reacquired their Filipino citizenship and have made at least 24 monthly contributions to the Pag-IBIG Fund are eligible.
  4. 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.

If you are not yet registered with the Pag-IBIG Fund, you can do so online and start paying contributions for at least 24 months before opening an MP2 savings account.

How to Apply for Pag-IBIG MP2

To start an MP2 savings account, you have the option to either apply online or go to a Pag-IBIG Fund office in person. Keep reading to find out the steps on how to open an MP2 savings account.

MP2 Online Enrollment Procedure

The following are the steps to apply for the MP2 savings program online:

  1. Go to the Modified Pag-IBIG II Enrollment page at
  2. Provide your Pag-IBIG Membership ID (MID) number, last name, first name, and birthdate (MM/DD/YYYY).
  3. Enter the CAPTCHA code.
  4. Click the Submit button.
  5. Indicate the amount you want to save every month for your MP2 savings in the Desired Monthly Contribution field.
  6. Choose your preferred options from the dropdown menus for the following: a. Preferred Dividend Payout: Decide if you want to receive your MP2 dividends annually or at the end of the five-year term. b. Mode of Payment: Select whether you prefer to pay through salary deduction, over-the-counter at any Pag-IBIG branch, or through any Pag-IBIG Fund-accredited collecting partners. c. Source of Funds: Specify where your MP2 payments will come from.
  7. Click the Submit button.
  8. A completed Modified Pag-IBIG II Enrollment Form will be displayed, containing your 12-digit MP2 savings account number. You can save this form as a PDF or print it.

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