Manila, Philippines

High Interest Savings Thru Pag-Ibig MP2

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17Jul2018 Update: Published the historical dividend rates of MP 1 and MP 2. Will update this annually. Click here for details.

Caveat emptor. I’m not a Pag-ibig employee, but starting yesterday, I am now a Pag-Ibig MP2 believer. See our short video on Pag-Ibig MP2 here:

I 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

Promising Yields

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

MP2 Enrollment

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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 Pag-Ibig MP2

58 Responses

  1. Sol says:

    pwde po basta minimum contribution is 500. kaw na bahala kelan mo kokompletuhin basta maka 6k ka sa loob ng isang taon.

  2. Teresita Lorenzo says:

    Can an already retired government employee enroll with MP2 program

    • Admin says:

      hi po. ang pagka-alam po namin, open ang MP2 as long as contributing member ka. but if retired na and no longer a contributing member, we’re not sure. Best to double check with pag-ibig po. mabilis naman sumagot yung sa hotline nila. God bless po.

  3. jymdiaz says:

    hi sir, may i know how to enroll remittance method? Like ayaw ko po kasi ang employer mag babayad ng MP2

    • Admin says:

      The last time we talked to Pag ibig, hindi pa available yung thru bank deposits nila. So if hindi kasama sa deductions ni employer, you have to go to the pag ibig offices nearest you to deposit your savings. If OFW meron ata via remittance pero you need to call pag ibig for the details on their partner remittance agencies.

  4. Anonymous says:

    Hi sir,pwede bang paiba iba un contributions monthly?

  5. jason sario says:

    if i enroll for mp on a 20k monthly, and God forbid, i lose some of my income, can i reduce the monthly investment? and can i also increase it depending on my month’s income?

    • Admin says:

      i think this is possible. based on conversations with Pag ibig as long as you meet the 60k annual savings it should be fine no matter the frequency.

  6. istoryahee says:

    Can I ask if the MP2 account number is generated right away after online MP2 registration? Or is the number advised through email?
    Mali kasi yung email address ko na naka-save sa Pag-Ibig and I cannot edit that information/field. Thanks for the advice.

  7. Julie Critten says:

    Good morning po pwede po bang voluntary contribution sa pagibig

  8. Chuchu says:

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

  9. The Explorer (Doughra) says:

    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?

    • investmentjuan01 says:

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

  10. pearl says:

    Hello po. Ano po ibig sabihin na government guaranteed ang MP2?

  11. Day I did not PAY my MP 2 Contribution for FEBRUARY 2018 Is it OK if I will double my MP 2 Payment for the MONTH of MARCH 2018?

  12. Anonymous says: Geri,

    I just learned about this PAG-IBIG MP2 investment. Is this better than investing in insurance companies like philam, manulife, sunlife? Like, will PAG-IBIG perform better than investing in equity with sunlife for example?

    • Geri says:

      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

  13. how will we going to process their mp2 if we are the employer? is it a separate remittance or will add it to the monthly contribution?

    • Geri says:

      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.

  14. Anonymous says: i contribute monthly, for example, P10k will the 120k annually be deducted on my annual tax?

  15. 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

  16. Judy ann toribio says: enroll mp2 thru my android phone but i forgot to print the enrollment form and now i dont know how to find it. What will i do?

    • Geri says:

      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

  17. juls says: i open two mp2 pag ibig account ? i mean, if i enroll for an account. can i open another account again but still under my name?

    • Geri says:

      Hmm. Not sure if that’s possible.

      • mark says:

        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”

  18. Geri says:

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

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

    • Geri says:

      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.

  20. Anonymous says:, 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

  21. Nicole says: 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!

    • Geri says:

      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

  22. Geri says:

    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!

  23. Anonymous says: 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

    • Geri says:

      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.

  24. Drew says:

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

  25. Anonymous says: 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%?

    • Geri says:

      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.

  26. Karl says: 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?

  27. Geri says:

    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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