Why I Started Saving on Modified Pag-IBIG II (MP2) Program

After figuring out the why and how-to save on Modified Pag-IBIG II program of Pag-IBIG, I started saving on MP2 while working overseas. I am happy and proud to say that the entire process were done online.

The MP2 is an easy way for OFWs to save from abroad apart from the monthly contribution to Pag-IBIG as a member. Since I consider MP2 as a great way to save, it might suits your financial goal but before applying for MP2, let’s do a quick brush up of the program and its benefits.

What is Modified Pag-IBIG II (MP2) Program

Here’s a definition of term straight from Pag-IBIG:

The Modified Pag-IBIG II (MP2) Program is an additional and voluntary five (5) year savings facility being offered by HDMF to its Pag-IBIG I members that will provide them with a yield higher than their Pag-IBIG I membership.

I don’t want you to confuse MP2 with being a Pag-IBIG member. MP2 is entirely for saving money with added bonus through flexible dividend rate. While if you become a Pag-IBIG member, you can apply for a housing loan and save for retirement through the monthly contribution.

Buying a house and saving for retirement are two of my goals. Wouldn’t it be nice to save more without all the risk and volatility of stocks and other assets?

That’s where the Modified Pag-IBIG II Program comes in.

Why Should You Save on MP2 Program?

By now, I think you have made up your mind to sign up for the program because it’s an easy investment for five years. After that it’s up to you to invest it for another five years or withdraw. (Then go for a cruise if that is meant to be the travel fund.)

You can have a look for more information about MP2:

  • Read the FAQ which is not that long.
  • Read the FAQ in Tagalog. (Napakahalagang basahin ito.)

The minimum contribution is Php 500.00 per month. Increase it to Php 1000.00 the next month or skip the next contribution. Or pay once for the entire year. It’s all up to you.

Here’s a table to give you an idea of how much your savings can earn at 5.5% and 7.43% annual dividend rate.

MP2 Annual Dividend Rate

Whatever amount you want to save, make it happen. Put the money in the bank. (I mean in your MP2 account.)

Here’s more information while having a good laugh from Wealth Arki.

The hosts are Rienzie Biolena and Fitz Villafuerte, who is my favourite pinoy personal finance blogger. Because I no longer watch TV (it’s not an uncommon habit for OFW), I have time to watch and learn for free. Recommend your favourite personal finance YouTubers; I’ll add it on my subscription.

How to Enroll and Pay in the Modified Pag-IBIG II

You can sign up online through the MP2 Enrollment System or download the enrollment form. After the online registration, you’ll have an MP2 Account Number. Print and take the registration form to the Pag-IBIG branch to start remitting.

For OFWs, you can register online and ask your relatives to pay on your behalf. Or pay through the Overseas Remittance Partners Abroad using the MP2 Account Number:

  • Philippine National Bank (PNB)
  • Asia United Bank (AUB)
  • I-Express Remit Mo Sa Pag-IBIG
  • I-Text Mo Sa Pag-IBIG
  • I-Remit Ventaja (including PayPilipinas)

because I’m a huge fan of online transaction, I pay the online MP2 contribution through PayPilipinas. It’s not the best option but I’ll stick to it for now.

Final Thoughts

The Modified Pag-IBIG II is a simple way to save for Filipinos especially for those who work in the Philippines. As for OFWs, remitting might take some of your time but working abroad means higher contribution and earnings within 5 years.

Wherever you are, find out if MP2 is the right saving strategy. This could take up 10% or more of an investment portfolio; consider your age, return of investment, and risk tolerance.

What I’m interested to know if someone already withdraw their MP2 savings. If that’s you, share the journey in the comment.

Will you save through MP2? If not what other ways of saving or investing are you considering.

About Pwede Padala Gal

Pwede Padala Gal loves to share tips on how to save in Canada and the Philippines. Someday she'll finally teach her Aspin at least one dog trick and keep a cactus alive. Chat with her on Facebook and reddit.

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