When people mention Pag-IBIG, most would think of housing loans. This government institution has always been associated with giving ordinary people a way to get better housing, which means they are pretty much in the futures business.
That also means they need not be stuck with just giving housing loans since there are more ways to help people improve their lives.
One of the things they have come up with is the Modified Pag-IBIG II Fund, or the MP2 Fund for short.
For people who are looking to save money and make it grow over time, this is one of the viable options out there that can be used by just about anyone, especially overseas Filipino workers (OFWs) who work hard in other countries for the sake of their own families.
After all, if you just let your savings sit, it will lose value due to inflation, so you have to put it in a place where it can grow. Here are the basics you need to learn about the Pag-IBIG MP2 Fund.
What is the Modified Pag-IBIG II (MP2) Fund?
It’s not exactly a name that rolls off the tongue, but the Modified Pag-IBIG II Fund (MP2 Fund) is Pag-IBIG’s way of helping ordinary people save and grow their money in an easy-to-understand investment program.
The MP2 Fund is a tax-free voluntary savings program offered to Pag-IBIG I (P1) members.
The MP2 fund is different from the P1 and Pag-IBIG Overseas Program (POP) in that its terms are renewable every 5 years and provides a higher return on investment (ROI) than savings and time deposit accounts in banks.
It has a fairly low barrier of entry since you can open an account for as low as an initial deposit of PhP 500.
Despite that, its annual dividend has a higher interest rate than savings and time deposit accounts in banks, and higher than the regular Pag-IBIG P1 savings as well.
The Annual Dividend Rate may change but your contributions and earnings under the Pag-IBIG Fund MP2 Savings Program are government guaranteed.
It is prudent and conservative enough for even the most risk-averting of investors, and it is a worthy addition to anyone’s investment portfolio.
Limitations of Pag-IBIG MP2 Savings
However, with that convenience and flexibility, there are also limitations.
You will not be able to cash out your total accumulated value (TAV) anytime, unless you die, become disabled, lose your job due to health reasons, or reach the end of the 5-year maturation period.
So, it is certainly not like an ordinary savings account. You also can’t use your MP2 for loans at Pag-IBIG as it is meant to be exclusively a savings program.
How to Apply and Invest in the Pag-IBIG MP2 Fund
To qualify for the MP2 Fund, you must be an active Pag-IBIG P1 member who contributes at least PHP 100 every month.
If you do fit this simple requirement, you should then bring your Pag-IBIG ID (HDMF Transaction Card) to your nearest Pag-IBIG branch, or give them your complete name and Pag-IBIG MID number. You must then fill up the MP2 registration form and submit it along with requirements.
You may also apply online through Pag-IBIG E-Services.
- Visit www.pagibigfund.gov.ph, click on E-Services, and then click on MP2 Enrollment System.
- You then enter your Pag-IBIG MID number, your name, date of birth, the CAPTCHA code shown on screen, and then click the “Submit” button.
- You should then fill up the online form with the appropriate information and the CAPTCHA code shown on screen, then click on the “Submit My Application” button.
- You will then receive email messages with further instructions.
Once you finally have your MP2 account, you should deposit at least PHP 500 a month to it in addition to the minimum of PHP 100 a month to your P1 account.
Terms and Conditions of Pag-IBIG Mp2 Savings Program
- Mp2 Program is open to ALL Pag-IBIG 1 Members only.
- This program is solely a savings scheme.
- The minimum contribution is P500.
- The membership term is 5 years.
- The annual dividend will be credited to the member’s account.
- Upon maturity, the total savings and dividends will be received by the member.
- Upon maturity, the member may opt to renew his/her MP2 Savings for another 5 years.
- Dividend rates are subject to existing HDMF policy.
If you have any questions about Pag-IBIG MP2, you may contact the Pag-IBIG Hotline at 724-4244 or email them at firstname.lastname@example.org.
Preparing for your retirement as early in life as possible is always a good idea, and the Pag-IBIG MP2 fund is a great way to do that, especially if you are an OFW. It does not take much to build up to a fund that will let you live life after retirement as comfortably as possible without having to be a burden to the rest of your family.
You can deposit at least PHP500 a month to your MP2 fund and make use of compounding interest to your advantage. Rest assured, you will certainly be glad that you did.
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