What is Pag-IBIG Fund MP2 Savings Program?

Coming from someone who does not even know how to save, the idea of investment apparently scared and taken me aback. It was scary because I did not know anything about it. If savings were for the rich, how can investments be for me? To make it simple, investment means putting on money for profit – you shed your money, it grows and earns for you (or you lose it all, that’s another story).

There are various kinds of investments with different levels of volatility. As a conservative and amateur one, I would prefer something easy and safe first. Just recently, I found something that’s stable and good enough to start with. It is called Pag-IBIG Fund MP2 (Modified Pag-IBIG 2) Savings Program.

This has been up for a while now but there are still so many Filipinos, especially OFW’s who have not heard about this yet. Check some FAQs below:

What is Pag-IBIG Fund MP2 (Modified Pag-IBIG 2) Savings Program?
It is a savings facility designed for Pag-IBIG members who want to save and earn high dividends.

Who can open an MP2 account?
It is for Filipino nationals who are active Pag-IBIG fund members and for former members with at least 24 months of monthly contributions prior to their retirement.

How much can be saved?
There is no maximum limit required while a minimum of PhP500 is required per remittance. For a remittance above PhP 500,000, an issue of personal or manager’s check is mandatory.

How do I save?
1. You need to create an MP2 account by visiting the nearest Pag-IBIG office or through online. For OFW’s, you may need your Pag-IBIG MID number to register. Please visit or call POLO for your OFW number. (I got mine at POLO when I had my OEC and learned that my OFW number is different from the MID number when I was still employed in the Philippines.)

2. To remit/save and view your savings and dividends, you need to create a Pag-IBIG Virtual account here.

How long will I save?
This savings facility has a 5-year maturity plan. It means that you may save in MP2 for 5 years. After 5 years, it matures and does not yield dividends anymore.

Do I need to save monthly?
It is NOT required to save monthly, although it is advised. It is a voluntary program, you can save anytime. PhP 500 is however required per remittance.

How will my savings earn?
The savings can earn ‘Annually’ or on a ‘5-Year Compounded Interest’.
1. Annual – The total savings per year will make profit and can be withdrawn very year in 5 years.
2. 5-Year Compounded Interest – You save or put money for 5 years and once your account matures, you withdraw your principal savings + total dividends. This is recommended as the dividends compound annually for 5 years. Un-withdrawn savings multiply – higher dividends in 5 years than just in a year.

Is this a SCAM?
Totally not. Your PhP 500 won’t become PhP 10,000 in 7 days, that’s for sure.
The Philippine Government guarantees your savings while the dividend is variable to the profit declared by Pag-IBIG per year. (The average dividend from 2016 to 2018 is 7.65%, higher than the banks!) Whatever will happen to Pag-IBIG, the Philippine Government, by law, shall give back the principal amount that you have saved.

How does Pag-IBIG grow the money?
Pag-IBIG invests its funds in housing finance, government securities, and corporate bonds.

I have thought about bigger investment plans and I am pretty sure that you guys have, too! While greater things are coming our way, let’s grab something easy, safe, and reliable this time. When we can, we shall!

Published by MM in Dubai

MM in Dubai is a SPED teacher by profession. She is also a Content Writer and Blogger based in Dubai United Arab Emirates.

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