High Yield DepositsInvestmentsPassive IncomePersonal Finance

High Interest Savings Thru Pag-Ibig MP2(3-min read)

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

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 inquire directly with Pag-ibig 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 to enroll? First, create an account with Pag-Ibig online registration so Juan 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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47 thoughts on “High Interest Savings Thru Pag-Ibig MP2(3-min read)

  1. Hi, can anybody here testify about MP2? I mean ung meron na pong nakuhang result after investing? Thanks! 🙂

  2. Hi. If one is already a PAG-IBIG member, and regularly remit monthly tru salary deduction being a government employee (Php 200.00, that is 50/50 share from the employee and gov. as employer), but the remittances are cut as the employee severed its employment from the government, can he still avail the MP2? Say by paying the required monthly remittance in his private capacity since he is not a gov. employee anymore?

    1. Yes should be doable as long as the mandatory contributions are updated where remitted by employer and voluntary contributor.

    1. They have a different purpose po. Insurance is meant to protect you in case you get sick or die. MP2 is only a high interest savings. So depende po sa objective ng investment nyo, is it to get protection or just save higher vs banks? Note not easily withdrawable ang MP2 in case of emegencies

    1. Hmm not sure about this. Best to ask Pag Ibig directly. Maybe it’s a separate remittance that’s why not all employers can readily deduct mp2 savings from their employees even if they’re already deducting the mandatory monthly.

  3. Hi Sir. I enrolled online po for my MP2 account. I made the first payment via GCASH/ online payment. Okay lang po kaya to? mas preferred ko kasi na ako na mismo maghuhulog kesa i sasalary deduction ako kasi pag salary deduction fix lang yung amount

    1. You can try to login sa pag ibig online acct mo it might be there. Or call their helpdesk. My few tries may nakausap naman ako and friendly sila

      1. i think eto yung reply sa tanong mo po na nabanggit din sa article “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”

    1. 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.

    1. 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

  4. 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!

    1. Hi Drew, you might want to try opening an online acct with pag ibig first since mp2 can be opened online and i assume you’re a pag ibig contributing member. Another way is to get in touch with their hotline or Facebook page.

    1. 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.

  5. 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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