A Guide To Investing Money In Pag-Ibig Fund

The Home Development Mutual Fund, more commonly known as the Pag-IBIG Fund, is a government-owned and controlled corporation in the Philippines. It was founded in 1978 to encourage savings among Filipinos and to provide affordable housing financing. The Pag-IBIG MP2 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 savings. With a minimum monthly investment of ₱500, no penalties for missed contributions, and tax-free dividends, the Pag-IBIG MP2 is a budget-friendly investment option for Filipinos.

Modified Pag-IBIG II (MP2) savings program

The Modified Pag-IBIG II (MP2) savings program is a voluntary savings program that offers a tax-free annual dividend. This dividend is 50 basis points higher than those of the mandatory, regular membership. The dividend varies annually and is determined by the fund's financial performance for that year.

The MP2 program has a 5-year term and requires a minimum contribution of ₱500, with no maximum capital ceiling. This means that there is no limit to how much you can save under MP2. However, if you make a one-time savings deposit that exceeds ₱500,000, you will be required to remit the funds via a personal or manager's check.

You can create an MP2 savings account online via Virtual Pag-IBIG, or by submitting the MP2 Enrollment Form and corresponding requirements at any Pag-IBIG Fund branch. You can save in the MP2 program through various payment channels or via salary deduction through your employer.

The Pag-IBIG Fund, in general, invests at least 70% of its investible funds in housing finance, as required by its charter. It also invests in government securities and corporate bonds.

MP2 savings accounts

The Modified Pag-IBIG II (MP2) Savings Program is a voluntary savings scheme designed for active Pag-IBIG Fund members who wish to save more and earn higher dividends, in addition to their Pag-IBIG Regular Savings. It is also open to pensioners, retirees, and natural-born Filipinos with other sources of monthly income, who were former Pag-IBIG Fund members.

The MP2 Savings Account has a 5-year maturity period and a minimum requirement of ₱500 per remittance, with no maximum capital ceiling. Members can save through salary deduction, online remittance, or over-the-counter remittance. The account earns a higher dividend rate than the Pag-IBIG Regular Savings, and these dividends are tax-free and can be withdrawn annually or after maturity.

To open an MP2 Savings Account, you can enrol through Virtual Pag-IBIG online or by submitting an MP2 Enrollment Form at a Pag-IBIG Fund branch. You may also open and maintain multiple MP2 Savings Accounts.

Pag-IBIG Fund invests at least 70% of its investible funds in housing finance, as well as in government securities and corporate bonds.

MP2 dividends

The Modified Pag-IBIG II (MP2) is a voluntary savings programme offered by the Pag-IBIG Fund. It is a special savings facility with a 5-year maturity period, designed for Pag-IBIG Fund members who wish to save more and earn higher dividends, in addition to their Pag-IBIG Regular Savings. The MP2 savings programme is also open to pensioners and retirees who were former Pag-IBIG Fund members.

The MP2 savings programme earns a higher dividend rate than the mandatory Pag-IBIG Regular Savings. Dividends are tax-free and can be withdrawn annually or after the 5-year maturity. The dividend rate varies annually and is determined according to the fund's financial performance for the year. In 2023, the dividend rate for MP2 savings was 7.05%, the highest it has been since the pandemic.

Pag-IBIG Fund sets aside at least 70% of its annual net income and credits it proportionately to its members' Pag-IBIG Savings as dividends. This means that the more one has saved, the higher the dividends that member shall earn. There is a minimum requirement of ₱500 per remittance for the MP2 savings programme, and there is no maximum capital ceiling. Members can save through various payment channels or via salary deduction through employer arrangement.

MP2 savings requirements

The Modified Pag-IBIG II or MP2 is a voluntary savings program with a five-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 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.

• Accomplished Modified Pag-IBIG II Enrollment Form
• ATM card or passbook of your bank account where you'd like to receive your MP2 savings and dividends

To open an MP2 Savings account, you can either enrol online via Virtual Pag-IBIG or submit your duly-filled MP2 Enrollment Form and the corresponding requirements at any Pag-IBIG Fund branch.

There is a minimum requirement of ₱500 per remittance for the MP2 Savings account, with no maximum capital ceiling. Members with MP2 Savings of above ₱100,000 shall be required to submit proof of income or source(s) of funds.

How to apply for Pag-IBIG MP2

The Pag-IBIG MP2 is a government-backed voluntary savings program that offers a higher dividend rate than the mandatory Pag-IBIG Regular Savings. Here is a step-by-step guide on how to apply for the Pag-IBIG MP2:

• Eligibility: Before applying, ensure that you meet the eligibility criteria. The MP2 Savings is open to active Pag-IBIG Fund members, former Pag-IBIG Fund members who are pensioners or retirees with other sources of monthly income, and natural-born Filipinos who have reacquired their citizenship under the Citizenship Retention and Reacquisition Act of 2003 and have at least 24 monthly savings prior to permanent migration.
• Enrollment Options: You can create your MP2 Savings Account through two options:

• Virtual Pag-IBIG: Enroll in your MP2 Savings Account online via the Virtual Pag-IBIG platform. Once enrolled, you will be issued an MP2 Savings account number, and you can start saving.
• Pag-IBIG Fund Branch: Download and accomplish the MP2 Enrollment Form from the Pag-IBIG Fund website. Submit the duly accomplished form and the corresponding requirements to any Pag-IBIG Fund branch.

• Minimum and Maximum Amounts: The minimum amount required for each remittance is PhP500. There is no maximum capital ceiling, allowing you to save as much as you want. However, for single savings that exceed PhP500,000, you must remit the amount via a personal or manager's check.
• Payment Channels: You can save in the MP2 Savings using various payment channels, including online remittance through Virtual Pag-IBIG and authorized online payment partners, or over-the-counter remittance at Pag-IBIG Fund branches and authorized collecting partners' outlets or branches in the Philippines and overseas.
• Multiple Accounts: You can open and maintain multiple MP2 Savings accounts. This allows you to choose different dividend payout modes for each account.

By following these steps, you can apply for the Pag-IBIG MP2 and take advantage of the higher dividend rates and flexible savings options offered by this voluntary savings program.

Frequently asked questions