High Interest Savings Thru Pag-Ibig MP2

Checkout the attractive and competitive dividend yield plus the shorter tenor of 5 years. Dividend income is also tax free!

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Caveat emptor. I’m not a Pag-ibig employee, but starting yesterday, I am now a Pag-Ibig MP2 saver.

Saw below image shared in my FB timeline, from a Pag-ibig employee in Ortigas branch. She said please share so here I am spreading the good word. The post reminded me about Pag Ibig MP2, the modified savings plan by Pag-Ibig which earns a much higher interest rate / dividend, open to all existing Pag-ibig members who contribute PHP100 per month (usually through salary deduction).

Pag-ibig Fund


Back then I was focused on much higher yields from higher risk investments. Fast forward to 3 years, we have lined up the regular investments in stocks and UITF (so they’ll just keep on growing), so my focus now is to diversify and to build my portfolio of high yield deposits and similar investments such as preferred shares and bonds. Not saying this is the correct path (see here our newbie guide) but that is how my financial journey has been: get comfy with higher risks first before building lower risk investments.

Going back to Pag-Ibig MP2, seeing below image finally enticed me to enroll given the attractive and competitive yield, at par or even higher than the yields of recent bonds and preferred shares offerings. Plus the shorter tenor of 5 years and dividend is tax free (unlike 10% tax for preferred shared dividend income and 20% for bonds). It says 2016 dividend rate is 7.43% while the average dividend the past 6 years is 5.26%. Not bad, not bad at all. Hoping that future dividend rates will stay within that range.

Pag Ibig MP2 2016 Dividend

Pag Ibig MP2 Flyer



  • Government guaranteed
  • Tax free dividends
  • Can be monthly (as low as PHP500) or less frequent as long as you reach PHP6,000 annually
  • Can be salary deducted through your employer or you can enroll your own remittance method
  • 5-year maturity


So how did I enroll? First I created an account with Pag-Ibig online registration so I can get my permanent Member ID (MID). Create your account here: HDMF Online Registration. If you think you already have an MID but you seem to have lost it, you may call 724-4244 to retrieve your MID. If you have queries, you may call that number as well.

Next, go to the Online MP2 registration, click a few buttons and fill up the form and voila, you’re enrolled! Print 2 copies of the enrollment form, sign it, keep one for your reference and submit a copy to your HR for their processing. If I understood it correctly, Juan can have multiple MP2 accounts assuming Juan’s savings budget allows so that’s something to consider in the future.

Once again, do consider Pag Ibig MP2 for your high yield deposits.

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About Geri (367 Articles)
Founder and main author. Husband, used-to-be-breadwinner, God-made multi-millionaire, employee, financial planner and adviser, investor, stocks trader, entrepreneur, agri-preneur, book author. Firm believer that all Pinoys deserve a richer life. Not a guru, but a forever student of the investments world, a work-in-progress.

24 Comments on High Interest Savings Thru Pag-Ibig MP2

  1. Hi Lourdes. Best to confirm this with Pag Ibig but per the table one time remittance is 300k.


  2., I can’t seem to get how you calculated the 8,551.89 dividends at 5.26%. Thanks.


    • Hi. It’s just an estimate from Pag Ibig. If wr compute on our own using Future Value formula in excel given the following:
      Annual Rate = 5.26%
      Number of periods = 60 months
      Monthly Savings = 1000
      = FV (5.26%/12, 60, -1000)
      = 68, 459.16
      Or a gain of 8459 for your 60k contri. Close enough.


  3., incase of OFW, i enrolled & got my MP2 Account number. so can i go to approved overseas payment remittances and just pay my monthly savings to MP2 account? Thanks


  4. Geri,

    What will happen if you stopped contributing to your MP2, say at after 2 years and did not “reach PHP6,000 annually”? I am not aware they have a rule for 6k annually.. thanks!


    • Hmmm not sure. Best to inquire this directly with them through their hotline. It might not earn interest but you should be able to withdraw the principal amt still


  5. I already have one i want to be a millionaire when i teach 60
    Im saving php15,000.00 a month hopefully i can maintain this
    Its been 2 years now..😀


    • Wow Mary this is great! Keep it up! If it’s in your time horizon, I suggest you also try to diversify by learning other investments. But great job!


  6. Sir, with ref to above example of 6K in 12 months compounding interest, In year 2, total savings is 12,315 will earn 5.26%? Isn’t it should be 7.43% base on the 2016 rate? Just want to understand better how this works. Thanks


    • Hi. Just want to clarify that the image above is from Pag ibig and not ours. 😀 on your query, the 5.26% used by pag ibig is the average the past few years but in reality the rate fluctuates every year depending on their income but the rates will not be far off from 5.26%. The 7.43% is the actual for 2016 which is quite high compared to historical. I dont think they factored in the 7.43% in their table but you are right, those who opened mp2 in 2016 will enjoy that high dividend rate. For 2017 we’ll see. 😁


    • In short, though rates are much higher, the actual rate is not guaranteed. Can be 2, 3, 4 or as high as 7 so far.


  7. I’m here in Saudi Arabia, how can I avail this pag-ibig mp2?


  8. do we compute for the rate? Let’s ill contribute 500php per month for 5 years, how did you get the total dividends earned @5.26%?


    • Hi. The rate is set by Pag Ibig depending on how much dividends they will declare for the year. It varies year on year but for the example they gave above, the average is 5.26%. Then for 2016, the interest is 7.43%. For year 1, 6000 saved for 12 months will earn 315 (6000 *5.26%). By year 2 starting amount is 6315 plus the 6000 you’ll save that year so total of 12315 will earn 5.26% compounded. So on and so forth.


  9. I’m a voluntary member, does it mean that I have to pay 500pesos for the mp2 and 200pesos for the regular pag-ibig contribution? is it correct?


  10. In the unfortunate circumstance that your employer does not have salary deduction option, then your next option is to save directly in Pag-ibig branches. Per Pag ibig, they are still fixing the electronic payment process so we can just bank deposit eventually.


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