For 2018, the annual dividend rate for MP2 savings is set at 8.11 percent! Wow! That’s a good return, right? Especially as compared to the meager interest offered by our usual savings and time deposit accounts. In this post, allow me to highlight the features of Modified Pag-IBIG II (MP2) by sharing with you all the FAQs about MP2 and the HDMF’s answers to them.
What is Pag-IBIG Fund MP2 Savings Program?
It is a voluntary savings program for members who wish to save more and earn higher dividends than the regular Pag-IBIG Savings Program.
Who can save under the Program?
– Natural born Filipinos
– Active Pag-IBIG Fund Members; and
– Former Pag-IBIG Fund members with source of monthly income and/or pensioners, regardless of age, with at least an equivalent of 24 monthly savings.
Is there a minimum amount to what I can save under the MP2?
Yes. The minimum MP2 savings is P500.00.
Is there a limit to how much I can save?
There is no limit. In the event that you wish to save an amount exceeding P500,000.00, you would have to remit the amount via personal or manager’s check.
How do I save under MP2 Savings Program?
You may regularly save a minimum amount of P500.00 or you may opt for one-time savings.
How much dividends will my savings earn?
Your MP2 Savings shall earn dividends at a higher rate than that of the regular Pag-IBIG Savings Program. The dividends you shall earn are tax-free.
Your dividends are derived from no less than 70% of the Pag-IBIG Fund’s annual net income.
For the record, the three-year average MP2 dividend rate is at 6.96%.
When can I receive my MP2 Dividends?
You can choose to receive your MP2 dividends through any of the following options:
– Upon its five-year maturity, with your MP@ dividends compounded; or
– Annually, with your MP2 dividends credited to your savings or checking account with Landbank or DBP, or other banks that may be accredited in the future. For members who opt for annual dividend pay-out but have no Philippine bank account, especially in the case of overseas members, MP@ dividends shall be released via check payable to the saver/member.
Can I reapply for a new MP2 Savings once my MP2 Savings matures?
Yes. Once your MP2 Savings reaches its five-year maturity, you may re-apply for a new MP2 Savings account.
Members may claim their MP2 Savings anytime upon its maturity. If unclaimed, your MP2 Savings shall continue to earn dividends based on the regular Pag-IBIG Savings Program (P1) rate for two more years. After which, it shall be treated as an accounts payable and SHALL NO LONGER EARN DIVIDENDS.
Are MP2 Savings guaranteed?
Yes, by the Philippine government.
Where does Pag-IBIG invest my money?
The Fund invests at least 70% of its investible funds in housing finance. The Fund also utilizes its funds for short-term loan programs and invests in government securities, time deposits, and corporate bonds.
Can MP2 Savings be withdrawn prior to its five-year maturity?
The MP2 can be withdrawn prior to maturity under any of the following circumstances:
– Total disability or insanity
– Separation from service by reason of health
– Death of the member or of any of his/her immediate family member
– Retirement (except when MP2 saver is already a retiree)
– Permanent departure from the country
– Distressed member due to unemployment limited to layoff and/or company closure
– Critical illness of the member or any of his immediate family member, as certified by a licensed physician, subject to the approval of Pag-IBIG Fund
– Repatriation of an OFW member from the host country
– Other meritorious grounds as may be approved by the Pag-IBIG Fund
Am I allowed to pre-terminate and withdraw my MP2 Savings prior to its five-year maturity? How much will I receive?
Yes, a member may pre-terminate and withdraw his/her MP2 savings. A member who opts for compounding of MP2 dividends and later decided to pre-terminate his/her MP2 Savings for reasons other than the circumstances mentioned above shall only be entitled to 50% of the total dividends earned. A member who opts for annual MP2 dividend pay-out and later pre-terminates his/her MP2 Savings for reasons other than those stated above shall only receive his/her total savings.
How can one enroll in MP2 Savings?
Simply submit your duly accomplished MP2 Savings Application form at your nearest Pag-IBIG Fund branch, along with the following:
– Valid ID
– Passbook or ATM of your nominated bank
You may download the MP2 Savings application form here.
How do I pay my Pag-IBIG MP2 Savings?
– Salary deduction, for those employed
– Over-the-counter, in any Pag-IBIG Fund Branch nearest you
– Accredited collection partners. You may check them out here.
I hope you learned a thing or two. If you’re looking for a relatively safe way to save and invest with modest returns, Pag-IBIG’s MP2 Savings Program should be a good start, especially if you are employed. Take advantage of the salary deduction scheme! Just don’t forget to diversify and mind your end-goals for saving and investing. Remember, it’s a five-year hold but of course, you need not (and shouldn’t) tie with them all your money or savings.
Personal Disclosure: I have an MP2 account. And, I’m planning to create another account for annual saving which I will earmark for me or any of my immediate family’s critical illnesses since I don’t have insurance for that. Pero sana ‘wag ko duon magamit, sa travel na lang or kids’ education. Also, I’m planning to top-up my current MP2 for its last year to maximize the benefit of higher yield. 😊