Pag-IBIG MP2: The Low-Risk Investment Parents Are Raving About

With financial security in mind, more Filipino parents are choosing Modified Pag-IBIG 2 (MP2) as their investment vehicle. It offers higher dividends than traditional bank accounts while carrying lower investment risks.

Parents from the Smart Parenting Village Facebook group share their reasons for investing in MP2 and how it helps them secure their family's future.

What is Pag-IBIG MP2?

The MP2 Savings program is a voluntary savings option for Pag-IBIG members who want to save additional funds and receive higher dividends over five years. This program is distinct and independent from Pag-IBIG's regular savings offerings.

Pag-IBIG recently announced that it has credited dividends to its members. The Facebook post received over 200,000 positive reactions, showing that many Filipinos have started investing in the MP2 savings program.

Why parents choose to invest in Pag-IBIG MP2

If you have been considering investing in MP2 but are having doubts, we asked parents from the Smart Parenting Village why they chose to invest in MP2. Read their insights below.

1. It has guaranteed returns for peace of mind.

Pam Remoluna, a 31-year-old certified public accountant and mother of two started saving money in her MP2 account last year. As a working mom, she prioritizes saving and investing to secure her family's future while also enjoying life through travel.

"The biggest rival of investing is time, so it's best to start now. It doesn't matter how much you invest—just start." —Pam Remoluna

"My investment risk tolerance is low, so we chose MP2. While the returns may not be as high as other investment options, they are guaranteed, giving us peace of mind."

Pam and her husband allocate 10% of their monthly income to MP2. "Although we only started last year, and our dividends are still modest, we're already delighted. We know leaving our savings in the bank wouldn't yield nearly as much," she said.

^{Pam Remoluna and her family}

Pam shared what they are saving for, "We plan to open several MP2 accounts, each dedicated to a specific goal: two for our children's college funds, two for our retirement funds, and one for a dream vacation we hope to take in the next decade. Since MP2 has a five-year maturity period, we intend to reinvest the funds upon maturity to continue growing our savings."

She shares some advice with parents who are considering investing through MP2: "The biggest rival of investing is time, so it's best to start now. It doesn't matter how much you invest—just start. Your 50-year-old self will definitely thank you for it!"

2. It helps instill financial discipline.

Hannah Lea Hidalgo is a stay-at-home mom, content creator, and small business owner who sells handmade products like customized cakes and cookies. Her husband is a corporate professional. Together, they are raising their six-year-old son.

Growing up in a modest household, Hannah learned early on that hard work is essential. She saved money from helping her mom sell fishballs and kikiam, earning Php5, which she used for school expenses. This experience shaped her mindset about prioritizing savings.

"Investing in MP2 allows me to build a secure financial cushion for future needs while benefiting from compounding growth."

—Hannah Lea Hidalgo

In 2020, Hannah started saving money through Pag-IBIG MP2 and opened another account this year. "I chose Pag-IBIG MP2 because it offers a higher dividend rate than traditional savings accounts while remaining low-risk. Since it is a government-backed investment option, it provides security and stability, making it ideal for growing my savings without taking on too much risk. Additionally, the five-year lock-in period helps instill financial discipline."

^{Hannah Hidalgo and her family}

Hannah invests her son's monetary gifts, such as Christmas money and other cash gifts, to yield higher returns. "I save my MP2 funds for my son's education. Our funds have matured this year, and we're thrilled with the interest and dividends we received. Investing in MP2 allows me to build a secure financial cushion for future needs while benefiting from compounding growth."

3. It enables saving up for retirement and college funds.

Clariza Gomintong is a single mom of a seven-year-old. She owns a store and manages online selling and affiliate marketing. She chose MP2 to lock in her money for five years, preventing her from spending it impulsively. She also appreciates Pag-IBIG's competitive dividend rate.

She has two MP2 accounts—one for her retirement and another for her child's college fund. With no one else to rely on, she prioritizes financial security while still young, determined to avoid financial struggles in old age. She also looks after her grandfather, further motivating her to prepare for the future.

Ready to apply for Pag-IBIG MP2? What you need to know

Remember that before investing in MP2, you must be a Pag-IBIG member and contributor. It is called P1 Pag-IBIG member, which only requires you to contribute Php 200 monthly, or if you are employed, the employer is responsible for arranging the payment. It's also open to pensioners and retirees who were former Pag-IBIG members. You can also begin applying through their online site. 

The dividend rates have been increasing. From a 6.55% dividend rate in 2024, it turned to a 7.05% rate in 2023. In 2024, the dividend rate is 7.10% per annum, which is a sure rate. As the parents shared, MP2 ensures guaranteed returns and tax-free earnings.

Claiming your savings and dividends is also easy. You only need to present two government-issued identification cards (IDs).

To connect with other Pag-IBIG MP2 members, you may join the Smart Parenting Village.

Millions of Filipinos have already begun investing and claiming dividends. By investing today, we prepare for tomorrow. If you have a low-risk investment appetite and want a sure profit, MP2 is a great choice.

You can open your own MP2 savings account with a minimum deposit of Php 500. Learn how to do so here.