With the unpredictability generated by the COVID-19 outbreak two years ago, Pag-IBIG Fund members resorted to the institution’s MP2 Savings and jointly collected an approximate amount of PHP 52 Billion, holding the record for the most money earned willingly by participants in a continuous period.
The MP2 Savings Program which is the Modified Pag-IBIG II, is a five-year personal savings program for Pag-IBIG members who desire to earn and save in greater amounts. It is important to note that the program is distinct from the other programs the institute has in the past. Pag-IBIG members who want to save through the MP2 Savings Program must first join the Pag-IBIG Fund.
Here is a quick guide to Pag-IBIG’s savings program that will surely be useful to interested working Pinoys!
WHO is eligible to participate in the Pag-IBIG MP2 Savings Program?
- Pag-IBIG Fund Members who remain active
- Former Pag-IBIG Fund Members with other sources of monthly income and/or pensioners, regardless of age, with at least 24 monthly savings prior to retirement.
WHAT are the primary characteristics and benefits of the Pag-IBIG MP2 Savings Program?
- A minimum of PHP 500 is needed per month
- You can save as much as you want! NO LIMITS
- Opening and operating multiple MP2 accounts is allowed
- MP2 deposits generate larger yearly dividends
- Dividends are tax-free!
- MP2 savings are guaranteed by the government
- Online viewing is allowed for MP2 Savings!
HOW MUCH will my MP2 funds yield in dividends?
MP2 deposits yield higher dividends than normal programs. Dividends for the MP2 savings program are drawn from 70% of Pag-IBIG’s net profits. Here’s a Pag-IBIG example calculation based on a 7.5 percent dividend rate and a monthly savings of P500:
WHEN can I receive my earnings?
Two options allow members to receive their dividends:
- After the 5-year maturity term, compound the yearly dividends and get them upon complete withdrawal of your MP2 investments.
- Annual payouts with your MP2 dividends credited to any Pag-IBIG approved bank savings or checking account.
HOW can I save money in the MP2 Savings Program?
Workers could save in the MP2 Savings via their company, which will collect their regular MP2 savings from your income and deposit it to the Pag-IBIG Account. You may also do it on your own by remitting your contributions through Virtual Pag-IBIG, any Pag-IBIG Fund Branch, or approved collection partners and online payment methods (GCash, Coins.ph, 7-Eleven, Bayad Center, M.Lhuillier).
HOW can I enroll in the MP2 Savings Program?
Visit the MP2 Enrollment page to enroll online. You can also send your completed MP2 Savings application form to your local Pag-IBIG branch.
HOW can I pre-terminate my MP2 Savings?
You can cancel your MP2 Savings before the 5-year maturity date, although the rewards depend on whether you opted to compound your earnings and later decide to cancel your MP2 savings for a reason not stated in the Pag-IBIG terms and conditions which will get you your full savings plus 50% of the dividends generated, or if you select yearly dividend distributions and subsequently opted to cancel your MP2 savings for a reason not stated in Pag-terms IBIG’s and conditions, then instead of the former, you will get your full savings without any dividends earned.
If you are interested in reading more about Pag-IBIG’s MP2 Savings Program, make sure to visit their website at www.pagibigfund.gov.ph.
