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What is MP2?
The MP2 Savings is a special savings facility with a 5-year maturity, designed for Pag-IBIG Fund members who wish to save more and earn even higher dividends, in addition to their Pag-IBIG Regular Savings. The program is also open to pensioners and retirees who were former Pag-IBIG Fund members.
How it works?
Pag-IBIG uses the funds to finance housing loans, as required by its charter. It also invests in government bonds and securities. This is voluntary, hence, Pag-IBIG pays higher dividend rates for those who save under this scheme. You'll need to be an active member to be able to avail of MP2 (paying contributions for the last 6 months).
Is it safe?
Yes, it is safe. MP2 savings are also government guaranteed that means, your capital is safe. Your dividends may vary depending on the returns over the year. This is one of the safest investments in the Philippines. The only reason that you won't get your money is back is when the government goes bankrupt (that means the entire financial institution of PH fell with it, as well).
I get asked a lot about why I'm investing in Pag-IBIG because it opposes my political views. Pag-IBIG doesn't work the same way as other government agencies and LGUs. People are adamant to invest in Pag-IBIG because of the news we hear about government corruption, etc. Government corruption is in a project level and not on our financial institutions. Our country maintains financial integrity on institutions like this or else-- we lose investors in the process. Everything will fall down-- not just the government but banks, investment agencies, etc.
Pag-IBIG also earns the Commission on Audit's highest audit rating for the 9th straight year amid the pandemic.
Performance
Pag-IBIG has a pretty good track record, in terms of returns. Below is an illustration of MP2's dividend rate for the last 10 years (from Pag-IBIG website):
If you save 1,000/month for the next 5-years at 7.5% dividend rate, this is how it looks like:
If you put in a lump sum of 1M at 7.5% dividend rate:
Advantages
Minimum is 500 per remittance. However, there's no limit on how much you want to put in your account.
Capital is guaranteed.
Opening an MP2 account is hassle-free through Virtual Pag-IBIG. I've opened my own account in 5 minutes as an OFW. You only need your MP2 account number to start saving.
Dividends are tax-free.
Zero management-fees. (Why does this matter?)
You can open multiple MP2 accounts.
Payments are convenient. (You can pay via GCash and other bill payment facilities)
Disadvantages
5-year lock-in period - However, you can pull your money out with minimal consequences (e.g. not being able to get 100% of the dividends you were supposed to have earned, but your capital is still intact)
Dividend rates are not fixed. It's possible to have zero dividends for a year. If you want a more fixed rate, you'd rather go with government bonds.
How to Open your MP2 Account
Through Virtual Pag-IBIG (easy and convenient!)
Enroll for your Pag-IBIG MP2 here. Be ready with your MID no.
Complete the form, and it will generate a printable form. Save the printable form and find your MP2 Account number. It does have a lot of instructions that you need to go to Pag-IBIG and your employer, but it's not really required.
Fund your account. You'll need to use your MP2 Account number for this. I use GCash for this, and it reflects to my account in 3-5 business days. You can also pay online via their website OR other bills payment facility. You may need a manager's check should you want to deposit more than 500,000.
Another way to open an MP2 account is going straight to any Pag-IBIG office. They should be able to guide you through the steps.
To check your MP2 account:
Login or Register to your Pag-IBIG online account here. If it's you still need to create an account, you can just Click on "Create Account" and be ready with your Pag-IBIG MID. This is where you can track the status of your MP2 account.
Investing in Pag-IBIG MP2 is now super accessible. This is perfect for conservative investors that cannot stomach high volatility or losing their capital. This is also good for those thinking of midterm financial goals, such as saving up for a child's college tuition fee, euro trips, or house down payment.
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