As soon as you're done with your Pag-IBIG 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.

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Ideally, like with other investments in the Philippines, it's best to let the funds in your MP2 account grow until your account matures. This way, you get to maximize your profits.

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.

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According to a sample MP2 computation at the Pag-IBIG website,[6] 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 at ₱6,266.14 if you opt to get paid the lump sum after your MP2 account's five-year term.

You may monitor your posted MP2 contributions through Virtual Pag-IBIG.[5] But before you can do that, create a Virtual Pag-IBIG account first.

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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).

Whatever online payment facility you use, choose Modified Pag-IBIG 2 as your payment type and provide your MP2 account number.

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.

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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.

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Unclaimed MP2 savings after the five-year maturity will keep 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.

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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.[2]

On the other hand, if you have it compounded for five years, expect to earn more from your savings. You can also reinvest after the five-year maturity period.

Although the MP2 savings can be maintained for five years, you still have the option to withdraw your money anytime in case of emergencies.

How to apply for an MP2 investment? The first step is Pag-IBIG MP2 registration, which can be done online or in person at a Pag-IBIG Fund office.

According to Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta, the biggest growth in the agency’s savings collections came from MP2 savings and contributions—more than the mandated monthly savings. Indeed, from January to September 2023, Pag-IBIG MP2 savings reached ₱35.13 billion, a 14% growth from the ₱30.81 billion collected as of September 2022.[1]

For freelancers, entrepreneurs, and unemployed Pag-IBIG members, the most convenient payment mode is through accredited third-party payment channels, especially online facilities. Learn more about them below.

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.

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.

It's a good way to build your savings and fund your financial goals in the future. It makes a great passive income source, as you let a small amount of money earn for you. Since it's backed by the government, you can also rest assured that you won’t lose your money.

The MP2 program makes saving and investing money easy, affordable, and profitable for Filipinos. Check out some basic information about the savings program:

Like any other investment vehicle, the MP2 Savings Program offers a lot of benefits for its investors. Here’s what you need to know.

By filling out the online Pag-IBIG MP2 online registration form, you can automatically enroll and start paying your contributions anytime.

However, an unfortunate life situation might make withdrawing your MP2 savings necessary. The Pag-IBIG Fund allows early withdrawal under scenarios such as the following:

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The Modified Pag-IBIG II or MP2 is an optional savings program with a five-year maturity for current and former Pag-IBIG Fund members. It’s designed for those who want to grow their savings and earn higher dividends in addition to their Pag-IBIG regular savings.

The MP2 program can let you earn as much as 7.03% 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.

Venus has almost 20 years of combined experience in content marketing, SEO, corporate communications, and public relations. Most of her career was spent creating informative articles on personal finance and digital marketing. She also invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. Venus graduated cum laude with a Journalism degree from the University of the Philippines Diliman. A hardcore Hallyu Tita, she loves bingeing Korean shows on Netflix while bonding with her cats. Follow Venus on LinkedIn.

Investing money in fixed securities makes the Pag-IBIG MP2 investment less risky compared to stocks and other high-risk instruments.

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In this article, you’ll understand more about why it’s an investment worth considering. Learn how to apply for and invest in Pag-IBIG MP2.

Inactive members who have stopped paying Pag-IBIG contributions can proceed with their MP2 savings enrollment by resuming their payments until they reach the minimum 24-monthly contribution requirement.

Not registered with the Pag-IBIG Fund yet? Register online as a Pag-IBIG member[3] and pay contributions for at least 24 months before opening an MP2 savings account.

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.

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.

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.

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 may be higher compared to a few other banks, the average annual interest is way higher.

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.