Pag-IBIG MP2 Explained

While your Pag-IBIG HDMF contributions are mandatory, the Modified Pag-IBIG II or MP2 is optional. But that doesn't mean you shouldn’t avail of one. This optional savings scheme by Pag-IBIG earns higher interest per annum than most bank savings accounts.

Want to earn above industry dividend per annum rates? Here is your beginner's guide to Pag-IBIG MP2

What is the Pag-IBIG MP2 Savings Program?

Pag-IBIG invests the funds collected from the MP2 program in its short-term loan programs, housing loan programs, corporate bonds, government securities, and time deposits. When the borrowers pay with interest, the MP2 funds grow.

Benefits of Pag-IBIG MP2

1. Affordable and flexible

With MP2, you can save as little as P500 monthly and increase your monthly savings as your lifestyle and budget permit. Alternatively, you can also deposit a lump sum of, for example, P30,000 instead of paying P500 every month for the next 5 years.

When it comes to dividend earnings, you can choose between an annual payout or compounded savings after the 5 year maturity period.

Take note that you can enroll as many MP2 accounts under your name for varying financial goals. For example, one can be for your child's education, the other for a small-business fund, and so on.

2. Dividend rates over 7%

One of the most attractive benefits to having an MP2 savings is its steady track record of dividend rates averaging at 7.65% from 2016 to 2018, and 7.41% on 2019. This makes it more profitable than the regular Pag-IBIG savings program and makes its dividends higher than the average interest rates of most investment products from local commercial banks.

3. Short-term to medium-term investment

Unlike most investment programs that last between 10 to 20 years, you can access your funds more quickly with the MP2's five year maturity period. After that period, you can either withdraw your savings or let it keep earning with compounded interest for another cycle.

4. Government-guaranteed and tax-free earnings

Under the MP2 you eliminate the risk of losing your investment/savings because the program is fully guaranteed by the government. This makes your earnings tax-free and makes the worst-case scenario getting back your principal without profit.

Pag-IBIG MP2 Eligibility

You are eligible to open a Pag-IBIG MP2 account if you belong to any of these groups:

• An active Pag-IBIG member
• Pensioner with at least 24 monthly contributions to HDMF.

How to enroll in Pag-IBIG MP2

Walk-in

1. Go to your nearest Pag-IBIG branch.
2. Fill in and submit the Modified Pag-IBIG II Enrollment form.
3. Receive your issued MP2 account number from the Pag-IBIG officer. You will be asked for this information every time you remit your savings.

Optional:

1. Tell the Pag-IBIG officer that you will be paying for your first monthly MP2 savings. Receive a queue ticket and wait for your number to be called.
2. Head to the cashier and pay the amount  indicated on your MP2 form. Receive your official receipt.

Online enrollment

While the MP2 online registration is quicker than filling in the enrollment form manually in the Pag-IBIG office, take note that you will still need to complete your MP2 enrollment in your nearest Pag-IBIG branch.

1. Go to the Modified Pag-IBIG II Online Enrollment System and fill in your Pag-IBIG MID number, firstname, surname, and birthdate.
2. Enter the captcha code shown on your screen and click Submit. You'll be redirected to the online form.
3. Fill out the information asked in the online form. Take note that your Monthly Oncome and Desired Monthly Contribution are required fields.
4. Read the Terms and Conditions, enter the captcha code, and click the Submit My Application button.
5. In the confirmation page, take note of your MP2 account number on the upper right corner. You'll also find your accomplished enrollment form here.
6. Read the Terms and Conditions. Write your name in print and sign with the current date at the bottom of the page.
7. Click the link at the bottom most part of the page to print or save your form as PDF. If you are employed, be sure to print a second copy for your company HR so you can automate your MP2 savings in the form of salary deduction.
8. Head to your nearest Pag-IBIG branch and submit a printed copy of your MP2 form.

Optional

1. Tell the Pag-IBIG officer that you will be paying for your first monthly MP2 savings. Receive a queue ticket and wait for your number to be called.
2. Head to the cashier and pay the amount  indicated on your MP2 form. Receive your official receipt.

Skip the long lines at Pag-IBIG

Whether it's for Pag-IBIG Savings or Housing Loan Amortization, you don't need to leave the comfort of your home to pay Pag-IBIG. (Read: How to Pay Pag-IBIG Contributions using Coins.ph)

In your Coins.ph app, just tap Pay Bills, scroll to Government, tap on either Pag-IBIG Membership Savings or Pag-IBIG Housing Loan Amortizations, enter all pertinent info, and Slide to pay!