Lester Freeman
The Modified Pag-IBIG II or Pag-IBIG MP2 is an optional savings scheme for members who want to save more and earn higher dividends on top of their regular Pag-IBIG savings. It is a voluntary program that provides a higher earning potential than a regular savings account. Your savings are invested by Pag-IBIG and will earn through dividends, just like investing in mutual funds. The Modified Pag-IBIG II Enrollment Form can be submitted online or at any Pag-IBIG Fund branch.
| Characteristics | Values |
|---|---|
| Name | Modified Pag-IBIG II (MP2) |
| Type of Program | Voluntary savings program |
| Maturity Period | 5 years |
| Who Can Save in the MP2 Savings? | Active Pag-IBIG Fund members; former Pag-IBIG Fund members (pensioners and retirees) with other sources of monthly income, regardless of age, and with at least 24 monthly savings prior to retirement; natural-born Filipinos who have reacquired their citizenship and have at least 24 monthly savings prior to permanent migration to another country |
| Minimum Savings | PHP 500 per remittance |
| Maximum Savings | No limit |
| Dividends | Higher than Pag-IBIG Regular Savings; tax-free; can be withdrawn annually or after the 5-year maturity |
| Savings | Government-guaranteed |
| Application Process | Online via Virtual Pag-IBIG or at any Pag-IBIG Fund branch by submitting the MP2 Savings Enrollment Form |
| Modes of Payment | Salary deduction by employer; online remittance via Virtual Pag-IBIG or authorised online payment channels; over-the-counter remittance at any Pag-IBIG Fund branch or authorised collecting partners' outlets or branches |
What You'll Learn
- Pag-IBIG MP2: A voluntary savings scheme with a 5-year maturity, offering higher dividends than regular savings
- No penalties for missed contributions, with a low minimum investment of ₱500 per month
- Tax-free dividends, with the option to withdraw annually or at maturity
- Government-guaranteed savings, with no limit on investment amount
- Easy account opening, with the option to apply online or in-person
Pag-IBIG MP2: A voluntary savings scheme with a 5-year maturity, offering higher dividends than regular savings
The Modified Pag-IBIG II (MP2) Savings Program is a voluntary savings program with a 5-year maturity period. It is designed for active Pag-IBIG Fund members who want to save more and earn higher dividends than the regular Pag-IBIG savings program. The MP2 savings program is also open to former Pag-IBIG Fund members (pensioners and retirees) with other sources of monthly income, regardless of age, and with at least 24 monthly savings prior to retirement.
The MP2 program has a minimum monthly contribution of ₱500, with no limit on the maximum amount. It offers tax-free dividends, which can be withdrawn annually or after the 5-year maturity period. The dividends are based on the Pag-IBIG Fund's financial performance, with at least 70% of its annual net income credited proportionately to its members' savings as dividends.
Members can open an MP2 savings account online via Virtual Pag-IBIG or by submitting the MP2 Enrollment Form at a Pag-IBIG Fund branch. The MP2 savings account number will be provided upon enrolment, and members can start saving by remitting contributions through various payment channels, including salary deduction, online remittance, and over-the-counter payments.
The MP2 savings program offers several advantages, including a high annual interest rate, the option to withdraw dividends each year or compound them for higher returns, and the flexibility to withdraw funds at any time. However, it's important to note that the high dividend rate is only applicable during the 5-year lock-in period.
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No penalties for missed contributions, with a low minimum investment of ₱500 per month
The Pag-IBIG MP2 savings program is a voluntary scheme designed for active Pag-IBIG Fund members who want to save more and earn higher dividends, in addition to their regular Pag-IBIG savings. It is a budget-friendly investment option with a low minimum investment requirement of ₱500 per month. This means that for as little as ₱500, you can start investing in the MP2 program and growing your savings.
One of the key advantages of the MP2 program is its flexibility regarding contributions. There are no penalties for missed contributions, so if you are unable to contribute one month, you won't be penalised. This makes it a low-risk and accessible way to start investing and building your savings.
The MP2 program also offers the convenience of multiple payment methods, including salary deduction, online remittance, and over-the-counter payments at Pag-IBIG branches and accredited collecting partners.
With its low minimum investment requirement, flexibility on contributions, and accessibility through various payment methods, the Pag-IBIG MP2 savings program is an attractive option for those looking to grow their savings and earn higher dividends.
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Tax-free dividends, with the option to withdraw annually or at maturity
Modified Pag-IBIG 2 (MP2) is a special voluntary savings facility with a 5-year maturity period. It is designed for active Pag-IBIG Fund members who wish to save more and earn higher dividends, in addition to their Pag-IBIG Regular Savings. The MP2 program makes saving and investing money easy, affordable, and profitable for Filipinos.
One of the key features of the MP2 program is that it offers tax-free dividends, which can be withdrawn annually or at maturity. This means that you can choose to receive your dividends every year or let them compound and be paid out at the end of the 5-year term. If you choose the annual dividend payout, the dividends will be credited to your savings or checking account enrolled in any of Pag-IBIG Fund's accredited banks. For members without a Philippine bank account, such as overseas members, the dividends will be released via check.
It is important to note that the dividend payout mode chosen upon application is fixed and cannot be changed during the 5-year savings period. However, you have the option to open another MP2 Savings account where you can select your preferred dividend payout mode.
The MP2 program offers a high dividend rate, which is higher than the rate of the Pag-IBIG Regular Savings program and even those of bank accounts, time deposits, and other investment vehicles. The dividend rate for MP2 as of 2021 was 6.00%, and it reached 8.11% in 2017. These rates are significantly higher than most bank interest rates, which are usually lower than 2%.
With the MP2 program, you have the flexibility to choose how you want to receive your dividends. You can opt for annual payouts to have access to your dividends each year, or you can choose to let them compound and receive a larger payout at maturity. This allows you to balance your short-term and long-term financial goals.
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Government-guaranteed savings, with no limit on investment amount
The Modified Pag-IBIG II or MP2 is a government-guaranteed savings program with no limit on the amount you can invest. It is a voluntary savings scheme for members who want to save more and earn higher dividends on top of their regular Pag-IBIG savings.
The Modified Pag-IBIG II is an optional savings program with a five-year maturity period for current and former Pag-IBIG Fund members. It is designed for those who want to grow their savings and earn higher dividends in addition to their regular Pag-IBIG savings. There is no limit to the amount you can save with MP2, and you can remit as much money into your MP2 account as your budget allows. For one-time payments exceeding ₱500,000, a personal or manager's check is required.
The MP2 program is government-guaranteed, meaning you won't lose your principal investment. However, your savings may be subject to a different computation scheme, considering annual dividend performance and other factors. The worst-case scenario is that you will get back only your principal (the actual amount saved) without profit.
The MP2 savings program is ideal for those looking for a low-risk investment option. It is perfect for investors with a low-risk appetite who don't expect high rewards.
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Easy account opening, with the option to apply online or in-person
Opening a Pag-IBIG account is easy, with the option to apply online or in person.
Online Account Opening
The Pag-IBIG Fund offers an online service called Virtual Pag-IBIG, which allows members to access services and benefits anytime, anywhere, via a smartphone or computer with an internet connection.
To open an account online, you can visit the Pag-IBIG Fund website and click on the Virtual Pag-IBIG link. From there, you can create an account by choosing one of the following options:
- Via your Pag-IBIG Loyalty Card Plus
- Via Online Activation
- Via Account Creation for Overseas Filipino Workers (OFWs)
The first option requires you to input your Pag-IBIG Fund Membership ID (MID) Number, the bank that issued your Loyalty Card Plus, and the last four digits of your card number. You will then receive a One-Time Pin (OTP) on your mobile phone, along with security questions for password retrieval. After submitting the required information, you will receive a confirmation email with a temporary password, and you can then create a new password to access your Virtual Pag-IBIG account.
The second option, "Create and Activate Online," requires similar information, including your Pag-IBIG Fund Membership ID (MID) Number, security questions, and mother's maiden name. Additionally, you will need to upload a photo of your passport or two valid primary identification cards, along with a selfie holding these documents. After submitting this information, you will receive an SMS confirming the creation of your Virtual Pag-IBIG Account, followed by another SMS within a few days informing you of your account activation.
For Overseas Filipino Workers (OFWs), the third option allows for account creation by entering the Pag-IBIG Fund Membership ID (MID) Number, Philippine mobile phone number, and other personal details. Similar to the previous option, you will need to upload a photo of your passport or valid identification cards, along with a selfie holding these documents. After submitting the required information, you will receive SMS confirmations about your account creation and activation.
In-Person Account Opening
If you prefer to open your account in person, you can visit any Pag-IBIG Fund branch and submit the MP2 Savings Enrollment Form. This form can be downloaded from the Pag-IBIG Fund website.
MP2 Savings Account
Once you have opened your Pag-IBIG account, you can start saving and investing in the Modified Pag-IBIG II or MP2 program. This is an optional savings program with a five-year maturity, offering high dividend rates, tax-free dividends, and budget-friendly investment options. You can open an MP2 Savings Account online via Virtual Pag-IBIG or in person at a Pag-IBIG Fund branch.
To open an MP2 Savings Account online, visit the Modified Pag-IBIG II Enrollment page and enter your Pag-IBIG Membership ID (MID) number, last name, first name, birthdate, and CAPTCHA code. After submitting this information, you will be asked to enter your desired monthly contribution amount and select your preferred options for dividend payout, mode of payment, and source of funds. Once you submit this information, you will receive your 12-digit MP2 savings account number, and you can start saving and investing.
Alternatively, you can open an MP2 Savings Account in person at any Pag-IBIG Fund branch by submitting the MP2 Savings Enrollment Form.
With its user-friendly online platform and accessible branch locations, Pag-IBIG offers convenient options for members to open accounts and start their savings journey.
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Frequently asked questions
The Modified Pag-IBIG II (Pag-IBIG MP2) Savings Program is a special voluntary savings facility with a 5-year maturity period. It is designed for active Pag-IBIG Fund members who wish to save more and earn higher dividends, in addition to their Pag-IBIG Regular Savings.
The key features of the MP2 Savings Program include:
- Easy to save with a minimum of ₱500 per remittance.
- Earns higher dividends than the Pag-IBIG Regular Savings.
- Dividends are tax-free and can be withdrawn annually or after the 5-year maturity period.
- MP2 Savings are government-guaranteed.
The MP2 Savings Program is open to active Pag-IBIG Fund members and former Pag-IBIG Fund members (pensioners and retirees) with other sources of monthly income and at least 24 monthly savings prior to retirement. Natural-born Filipinos who have reacquired their citizenship and have at least 24 monthly savings prior to permanent migration to another country are also eligible.
You can open an MP2 Savings account online via Virtual Pag-IBIG or by submitting the MP2 Savings Enrollment Form at any Pag-IBIG Fund branch. Once you are issued an MP2 Savings account number, you can start saving.
The minimum amount for the MP2 Savings Program is ₱500 per remittance. There is no limit to the amount you can save, but for one-time savings exceeding ₱500,000, a personal or manager's check is required.
