Pag-IBIG MP2 Guide: How To Start, Grow Your Money Through This Savings Program

A Facebook post by Pag-IBIG Fund (HDMF) on March 12 broke the internet.

"Check niyo na po MP2 niyo [smiley emoji]," the post reads. In it was the hashtag, #2023dividends.

The post has now over 43k reactions and 11k comments, including, "Grabe ang lakiiiii!" others couldn't help but wonder: what is MP2?

So, what is Pag-IBIG MP2?

MP2 stands for Modified Pag-IBIG 2 Savings, a voluntary special savings facility for Pag-IBIG Fund members who wish to save more and earn more dividends within a 5-year maturity. It is different and separate from Pag-IBIG's regular savings program.

"Pag-IBIG Fund sets aside at least seventy percent (70%) of its annual net income and credits it proportionately to its members' Pag-IBIG Savings as dividends. This means that the more one has saved, the higher dividends that member shall earn," as explained in its website. Since 2017, dividend rates have ranged from 6 to 8 percent. This year, Pag-IBIG announced a 7.03% dividend rate for each member.

Parents share their experience with Pag-IBIG MP2

An anonymous mom shared with Smart Parenting that she started saving through Pag-IBIG MP2 last January 2022. She was able to contribute a total of Php 76,100. Since then, she has already earned Php 5208.38 in dividends! She says, she is motivated to add more contributions until it reaches its maturity period in January 2027.

A stay-at-home mom from the Facebook group, Smart Parenting Village, shared about her MP2 earnings with the rest of the parent members. She said, she's earned a total of Php 11,191 dividends since 2019. She chose the 5-year compounding vs. annual (read more about it below).

“Gusto ko lang i-share ang MP2 savings ng Pag-IBIG. Dito [ko] nilalagay ang mga nakuha ko [sic] aginaldo, nabigay nung binyag, at nakuha ko sa maternity benefit (Php 70k each). Dalawa po ang anak ko, magkasunod sila, 3 years old and 2 years old. May year din ako nawala talagang hulog, yun yung nanganak ako sa bunso. Sobrang busy, plus may maliit pa ako."

She added, "Hindi po tuloy-tuloy ang hulog ko. Kasi stay-at-home mom ako. Kaysa naka-bangko, dito ko na lang ilagay [sic], at least hindi ko magagalaw, nadadagdagan pa.”

In other Facebook groups, others even invested hundreds of thousands and millions of pesos to MP2, and the dividends didn't disappoint them. They mostly use MP2 for savings, education, retirement, and other purposes.

Pag-IBIG MP2 Guide for Beginners: How to get started

1. Open an MP2 Account online.

Yes, applying for an MP2 account can be done online. You just need to activate your P1 Regular Savings account. This is the mandatory savings deducted by employers, but you can also do it voluntarily as self-employed.

You can enroll online by visiting the MP2 Enrollment page here.

If there's a Pag-IBIG branch near you, you can fill out this MP2 Savings application form, and submit it.

2. Start paying your MP2 contributions.

You can pay by remitting your contributions via Virtual Pag-IBIG, through any Pag-IBIG Fund Branch, or through authorized collecting partners and online payment channels, such as GCash, Coins.ph, 7-Eleven, Bayad Center, and M.Lhuillier.

Remember that the covered period should be the current date/month. Do not spread out or make advance payments.

3. Monitor your contributions online.

To view your contributions and earnings, you can create a Virtual Pag-IBIG account on its website here. 

You may also download the Pag-IBIG app on the App Store here or on Google Play here.

4. Claim your MP2 savings.

Upon the maturity of your MP2 account, you will receive a notification letter from Pag-IBIG Fund detailing the process for claiming your savings. Pag-IBIG Fund disburses MP2 earnings (comprising dividends and accumulated savings) solely via checks.

Option 1: Withdrawing MP2 Savings In-Person (Walk-In)

• When your account reaches maturity, visit any Pag-IBIG office within the same month to submit a claim. Make sure to bring two valid IDs.
• Once your check is ready for pickup, you'll receive a text message from Pag-IBIG Fund.
• Return to the Pag-IBIG branch to collect your check, and remember to bring two valid IDs for verification.
• If you don't have immediate plans for your MP2 earnings in the next five years, you can open a new MP2 account and make a one-time payment using the amount you have received.

Option 2: Withdrawing MP2 Savings Online

You can also claim your Pag-IBIG MP2 savings online through the Virtual Pag-IBIG site, given that it is already in its maturity.

• Access the Virtual Pag-IBIG site here.
• Click Claim MP2 Savings and select MP2 Savings.
• Upon selecting MP2 Savings, you need to present your documentary requirements: Claim application form, Valid ID, Cash Card, and Selfie Photo showing your Valid ID and Cash Card.
• Select Proceed to continue.
• Enter your 12-digit Modified Pag-IBIG MP2 account number and click Validate.
• After the validation, upload the scanned copies of the requirements, then click Submit.

Tips for parents who want to invest in Pag-IBIG MP2

1. Save to invest.

Most of us want to save money to prepare for the future. If you aim to save and use it immediately, then MP2 Savings is not for you. If you aim to use the money for an emergency, it's better to put it in a bank that you can access anytime.

If you plan to invest in MP2, your goal must be to save to invest and compound interests. It's like making money work for you through dividends.

2. Choose your goal wisely.

Remember that an MP2 Savings account has a 5-year maturity period, but you can get the dividends in two ways: Annual or 5-year compounding. Make sure to fill out the form based on your preferred goal.

In the Annual option, only dividends can be withdrawn annually, while the Capital remains intact until the fifth year, although these dividends will be added to the Capital you receive. It will not grow in five years compounding. Only the Capital you deposited will earn interest, excluding the dividends you receive. Most people opt to open a new account for five years compounding and deposit their annual dividends there, or you can choose to withdraw the annual dividend and add it to the Capital.

In 5-year Compounding, you will receive all your savings, including dividends, on the fifth year. You will earn more here, because interest is added to the Capital every year. This cannot be changed or replaced, so from the start, you should know your goal in choosing between Annual and 5-year compounding.

3. Join Facebook groups with like-minded people who can inspire you.

There's a Facebook group called MP2 Sharing Ideas, where business owners, overseas Filipino workers, and employees share their experiences. If you are a newbie and have questions, the members are also generous to answer questions related to MP2.

For your protection, never share your Pag-IBIG MP2 account details to anyone online.

4. Consider adding contributions regularly.

The minimum amount to start in MP2 is Php 500, but since the account will only mature within 5 years, make the most of its earnings and interests. Take advantage of the higher returns from higher contributions.

We must take advantage of government benefits like the MP2. Only we can help ourselves live better lives and prepare for an uncertain future. Thanks to Pag-IBIG MP2, there's an easy and legitimate way to help us grow our savings.