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).
Admittedly, this option fell below our radar from when we first published a post about this in 2014: Consider Pag-ibig MP2 for Long Term Deposits
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.
- 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.
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