Can’t believe it’s already September, the month where Christmas songs are starting to just be anywhere!
Last July 2019, I wrote about what happened during the half-year of my 2019 and never thought I have already done many things I never thought I woild be doing!
Went to the infamous Corregidor c/o Sun Cruises and I super love the place; visited the whole CALABARZON for a food crawl (thank you, DOT Region 4A); roam around Bataan and covered the Padyakan Festival (thank you, DOT Bataan); opened ABCapital for my stocks investments; visited the emerging Capalonga, Camarines Norte c/o DOT Camarines; opened another VUL for my Mama.. Thank You, Lord for all the provisisons this year!
And just yesterday, September 11, 2019, I got to finally process my PAG IBIG MP2 Savings which had been in my goals list for such a long time already! I thought the whole process is a hassle for a working BGC girl like me living in Cavite but no, everything was a breeze. Tips and notes below for a faster transaction!
What’s Covered in this blog post?
- What is Pag-IBIG Fund MP2 Savings Program?
- Who can save under MP2?
- Is there a minimum amount that I can save?
- Is there a limit to the amount that I can save?
- How do I save under MP2?
- How much dividends will my savings earn?
- When can I receive my MP2 Dividends?
- Can I re-apply for a new MP2 Savings Account once my MP2 Savings matures?
- Can I open more than one (1) MP2 Savings Account?
- Are my MP2 Savings guaranteed?
- Where does Pag-IBIG Fund invest my money?
- How can I apply?
- How do I remit my MP2 Savings?
- Computations on how your MP2 Savings may grow
1. What is Pag-IBIG Fund MP2 Savings Program?
The MP2 Savings Program is a voluntary savings platform for Pag-IBIG Fund members who wish to save more and earn high dividends, in addition to their Pag-IBIG Fund Regular Savings.
2. Who can save under MP2?
- Active Pag-IBIG Fund Members; and
- Former Pag-IBIG Fund Members with other sources of monthly income and/or Pensioners, regardless of age, with at least 24 monthly savings prior to retirement
3. Is there a minimum amount that I can save?
Yes. The minimum MP2 savings is PhP500 per remittance.
4. Is there a limit to the amount that I can save?
There is no limit. You can save as much as you want under MP2. Should you wish to save an amount exceeding PhP500,000.00, you would have to issue a personal or manager’s check.
5. How do I save under MP2?
You may regularly save a minimum amount of PhP500 every month in your MP2 Savings Account. You may also opt for a one-time savings of a higher amount.
6. How much dividends will my savings earn?
Your MP2 savings earn tax-free dividends, at a rate higher than the dividend rate of the Pag-IBIG Fund Regular Savings Program.
MP2 dividends are derived from no less than 70% of Pag-IBIG Fund’s annual net income. For reference, the average MP2 dividend rate in the past three years (2016-2018) is at 7.65%.
7. When can I receive my MP2 Dividends?
You can choose to receive your MP2 Dividends through any of the following options:
- Upon full withdrawal of your MP2 Savings after its 5-year maturity period with your MP2 Dividends compounded annually; or
- Through annual pay-out with your MP2 Dividends credited to your savings or checking account enrolled in any of Pag-IBIG Fund accredited banks, such as the Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), or other banks that the Pag-IBIG Fund may accredit in the future. For members who opt for annual dividend payout but have no Philippine bank account, especially in the case of overseas members, MP2 Dividends shall be released to them in the form of checks.
8. Can I re-apply for a new MP2 Savings Account once my MP2 Savings matures?
Yes. Once your MP2 Savings reach the 5-year maturity period, you may re-apply for a new MP2 Savings Account.
You may claim your MP2 Savings anytime upon maturity. If unclaimed, your MP2 Savings shall continue to earn dividends for two more years based on the dividend rates of the Pag-IBIG Fund Regular Savings Program. After the said period, it shall no longer earn dividends, and must be withdrawn or claimed.
9. Can I open more than one (1) MP2 Savings Account?
Yes. You are allowed to open and maintain multiple MP2 Savings Accounts.
10. Are my MP2 Savings guaranteed?
Yes, MP2 Savings are government-guaranteed. However, the annual dividends, may vary depending on several factors, such as Pag-IBIG Fund’s financial performance.
11. Where does Pag-IBIG Fund invest my money?
Pag-IBIG Fund invests at least 70% of its investible funds in housing finance, as required by its Charter. It also invests in government securities and corporate bonds.
12. How can I enroll?
Simply submit your duly accomplished MP2 Savings Application form at your nearest Pag-IBIG Fund Branch, along with the following:
- Valid Identification Card; and
- Passbook or ATM Card of your nominated bank account
You may download the MP2 Savings Application form at http://www.pagibigfund.gov.ph/dlforms.aspx
13. How do I remit my MP2 Savings?
- Salary deduction, upon agreement or arrangement with your employer;
- At any Pag-IBIG Fund Branch
- At any Pag-IBIG Fund-accredited collection partner
14. See computations below on how your MP2 Savings may grow! *based on a 7.5% dividend rate
Step-by-Step Process on How to Apply for PAG IBIG MP2 Program
Embarrassing as it is, but my PAG IBIG MP2 Savings Program has been my goal since 2017. I have been studying this investment option but still, I can’t find the time to visit any PAG IBIG branch (or maybe I just don’t prioritize investing before.. hello, excuses! Lol).
If you’re a bit of a procrastinator, I made myself a blog about how to beat the Mañana Habit, hope this can help you as well.
But good thing I had the time this month since I went on leave. Yey!
I included a ‘How long did I wait?’ below but please note that this is a review only for PAG IBIG Imus Branch. Went there around 2:30PM, Wednesday. Less crowded compared to the last time we went there in the morning.
1. Go to the nearest PAG IBIG Branch
Since I am now a Cavite girl, PAG IBIG Imus branch along Aguinaldo Highway near Lumina Mall is the one closest to us. PAG IBIG in Cavite has branches as well in Dasmarinas and Rosario.
As mentioned above, I arrived at PAG IBIG Imus around 2:30 in the afternoon with, as expected, a lesser crowd. I am not sure if this is the case for the other branches but I have tried going to PAG IBIG in Shaw, near Kapitolyo. Went there before in the morning, as expected as well, it was flocked with people, but still organized. And around 4PM, I guess, few people were there for their transactions.
Point is, try to visit PAG IBIG in the afternoon for a more hassle free MP2 application.
Not sure where’s the nearest PAG IBIG branch in your place? Please check the directory here.
2. Fill out PAG IBIG MP2 Savings Program Form
Once you arrived at your chosen PAG IBIG branch, ask the guard where’s the processing for PAG IBIG MP2. At PAG IBIG Imus, you need to fill out the form on the 3rd floor of the building.
After filling out the PAG IBIG MP2 Form, the PAG IBIG staff will ask how much you want to save monthly or if you want annual or compounded dividends.
Annual Dividend – You will receive the dividend every year
Compounded Dividend – You will get the dividends after 5 years
Personally, I chose Compounded because the dividends that will be gained per year will be invested again. Meaning, dividends are much higher if you choose Compounded dividends. But still, it is your discretion if you’ll get annual or compounded.
How long did I wait?
– 15 min – Waiting time
– 5 min – Processing time
3. Wait for the new PAG IBIG MP2 Form with Account Number
Once you have already filled out the MP2 Form, the staff will provide you with the computerized form with your account number. This is to be forwarded to the rechecking area.
How long did I wait?
– 25 min – Waiting in line
– 2 min – Processing
4. Go to the cashier and pay your first MP2 Savings Fund
After payment, make sure to give back your receipt to the staff in step number 1 so that they can document your first payment.
Notes and Tips
- The minimum payment per month is 500 pesos but you can deposit more than your minimum.
- Missed months for payments is okay since MP2 serves as your savings. But of course, we don’t encourage this
- Go to your nearest PAG IBIG in the afternoon, around 2:30pm, if you want a faster transaction.