Applying for and investing in Pag-IBIG MP2 is straightforward, making it an accessible option for those looking to save and invest for their future financial goals. It offers a reliable passive income stream, allowing your money to work for you with minimal effort. Backed by the government, it provides a secure avenue for savings, ensuring the safety of your funds.

Consistent contributions over five years not only build up your savings but also instill good financial habits.

Understanding Pag-IBIG MP2

Pag-IBIG MP2, also known as Modified Pag-IBIG II, is a voluntary savings scheme tailored for current and former Pag-IBIG Fund members. It aims to enhance savings while offering higher dividends alongside regular Pag-IBIG savings.

Key Features of Pag-IBIG MP2

  • Affordable Investment: Start with as little as ₱500 monthly, with flexibility regarding missed contributions.
  • Government Guarantee: Your principal is secured by the Philippine government, albeit subject to varying dividend computations.
  • Tax-Free Dividends: Enjoy dividends without deductions, payable yearly or after five years.
  • Competitive Interest Rates: MP2 offers higher interest rates compared to standard savings accounts and other investment options.
  • Unlimited Savings: Deposit as much as you can afford, with the option for one-time payments exceeding ₱500,000 via a personal/manager’s check.
  • Multiple Accounts: Open multiple MP2 accounts to cater to different financial goals.
  • Five-Year Maturity: Your savings mature in five years, suitable for medium-term investment objectives.

Advantages of the MP2 Program

The MP2 Savings Program provides several advantages:

  • High Annual Interest Rate: Offers up to 7.03% annual interest, surpassing many other savings accounts.
  • Low Required Average Daily Balance (ADB): Allows you to earn high dividends with lower ADB requirements compared to other schemes.

Investing in Pag-IBIG MP2 is a wise choice for anyone seeking a simple yet lucrative avenue to grow their savings and achieve financial stability.

Savings Account Average Daily Balance to Earn Interest Annual Interest Rate
Pag-IBIG MP2 ₱6,000 7.03%
AUB Starter Savings ₱1,000 0.1000%
Bank of Commerce Savings Account Plus ₱50,000 0.125%
BPI Regular Savings ₱5,000 0.0625%
China Bank ATM Savings ₱10,000 0.0125%
CBS Easi-Save ATM ₱1,000 0.125%
EastWest Regular Savings ₱10,000 0.125%
Land Bank ATM Savings ₱500 0.0500%
Maybank Classic Savings Account ₱10,000 0.2500%
Metrobank Regular Savings ₱10,000 0.0625%
PBCOM Choice Saver ₱5,000 0.1000%
PNB Debit Savings ₱10,000 0.1000%
PSBank Peso Personal ATM Savings ₱5,000 0.1000% (subject to change)
RCBC Regular Savings ATM ₱25,000 0.15%
Robinsons Bank Savings ₱10,000 0.1250%
Security Bank Easy Savings Account ₱100,000 0.0675%
Sterling Bank of Asia Solo Savings ₱5,000 0.50%
UnionBank Regular Savings ₱25,000 0.1000%
UnionBank Savings + ₱100,000 0.10%

The calculation of MP2’s average daily balance for earning interest involves multiplying the minimum monthly remittance of ₱500 by 12 months. While the total average daily balance required may exceed that of some banks, the annual interest rate is significantly higher.

Choice of Dividend Withdrawal or Compound Interest for 5 Years

MP2 offers the flexibility to either withdraw dividends annually or reinvest them to earn compounded interest. If you opt for direct withdrawal to your bank account, you can utilize the funds for essential expenses or emergencies.

Alternatively, choosing to compound the dividends over five years can result in higher earnings from your savings. Additionally, you have the option to reinvest after the maturity period.

Here’s a demonstration of the computation for compounded interest:

Pag-IBIG MP2 Bank
First Year

  • Savings fund amount: ₱6,000
  • Dividends earned: ₱226.20
First Year

  • Savings fund amount: ₱6,000
  • Interest earned in the first year: ₱240.00
Second Year

  • Savings fund amount: ₱12,226.20 (savings fund for 2 years + dividend earned from the previous year)
  • Dividends earned: ₱659.54
Second Year

  • Savings fund amount: ₱12,240.00 (savings fund for 2 years + interest earned from the previous year)
  • Interest earned in the second year: ₱489.60
Third Year

  • Savings fund amount: ₱18,885.74  (savings fund for 3 years + dividend earned from the previous year)
  • Dividends earned: ₱1,123.05
Third Year

  • Savings fund amount: ₱18,729.60 (savings fund for 3 years + interest earned from the previous year)
  • Interest earned in the third year: ₱749.18
Fourth Year

  • Savings fund amount: ₱26,008.79 (savings fund for 4 years + dividend earned from the previous year)
  • Dividends earned: ₱1,618.81
Fourth Year

  • Savings fund amount: ₱25,478.74 (savings fund for 4 years + interest earned from the previous year)
  • Interest earned in the fourth year: ₱1,019.15
Fifth Year

  • Savings fund amount: ₱33,627.60  (savings fund for 5 years + dividend earned from the previous year)
  • Dividends earned: ₱2,149.08
Fifth Year

  • Savings fund amount: ₱32,497.89 (savings fund for 5 years + interest earned from the previous year)
  • Interest earned in the fifth year: ₱1,299.92
Total contribution for 5 Years – ₱30,000

Total earnings for 5 Years – ₱5,776.68

Total Contribution for 5 Years – ₱30,000

Total Earnings for 5 Years – ₱3,797.85


The calculation provided is a conservative estimate for comparing potential earnings from MP2 Savings, offering a 6.96% per annum dividend rate, with traditional bank savings, which typically offer a 4% annual interest rate. It’s important to note that this estimation does not consider exact deductions (such as taxes or fees), additions, or precise interest earned imposed by banks and Pag-IBIG, which may vary during the maturity period. Additionally, earnings from bank savings are subject to taxation, while dividends earned from the MP2 program are tax-free and computed against 70% of your fund.

Flexibility to Withdraw Funds:

While MP2 savings are ideally maintained for five years, you retain the option to withdraw your money at any time in case of emergencies.

Convenient Online Account Opening:

You can effortlessly enroll in the MP2 program by completing the online registration form provided by Pag-IBIG. This allows you to begin contributing to your savings promptly.

Drawbacks of the MP2 Program:

Despite its advantages, the MP2 program has limitations worth considering:

  • Five-Year Maturity: Unlike bank savings, which can be held indefinitely, MP2 savings mature in five years, requiring you to open a new account upon maturity.
  • Reduction in Dividend Rate: If you choose not to claim your funds after the five-year lock-in period, the high dividend rate no longer applies.

Eligibility for Enrollment:

You qualify for the MP2 savings program if you meet any of the following criteria:

  • Active Pag-IBIG Fund members with at least one monthly contribution in the last six months.
  • Former Pag-IBIG members with alternative sources of monthly income and at least 24 monthly contributions.
  • Pensioners, regardless of age, with a minimum of 24 monthly contributions before retirement.
  • Natural-born Filipinos who have reacquired their citizenship and have at least 24 monthly contributions.

Inactive members can proceed with MP2 savings enrollment by resuming contributions until they meet the minimum 24-month requirement.

Requirements for Pag-IBIG MP2 Savings:

Prepare the following documents for your MP2 application:

  • Valid ID
  • Completed Modified Pag-IBIG II Enrollment Form
  • ATM card or passbook of your chosen bank account for receiving MP2 savings and dividends.

Application Process for Pag-IBIG MP2:

Enroll in the MP2 program either online or in person at a Pag-IBIG Fund office.

Online Enrollment for MP2 Savings:

Follow these steps for online enrollment:

  1. Visit the Modified Pag-IBIG II Enrollment page at
  2. Enter your Pag-IBIG Membership ID (MID) number, last name, first name, and birthdate (MM/DD/YYYY).
  3. Complete the CAPTCHA code.
  4. Click “Submit.”
  5. Specify your desired monthly contribution, dividend payout preference, mode of payment, and source of funds.
  6. Click “Submit” again.
  7. Save or print your completed Modified Pag-IBIG II Enrollment Form containing your 12-digit MP2 savings account number.

Manual Enrollment for MP2 Savings:

If you prefer in-person transactions, you can open an MP2 savings account at the nearest Pag-IBIG office.

Investment Process for Pag-IBIG MP2:

Once enrolled, you can start saving through lump sum payments or monthly contributions to your MP2 account.

Modes of Payment for MP2 Contributions:

Choose from the following payment options:

  • Salary deduction by your employer
  • In-person payment at any Pag-IBIG branch
  • Accredited collection partners for freelancers, entrepreneurs, and unemployed members.

For employees, salary deduction offers convenience, while freelancers and entrepreneurs may find online payment channels more suitable.

Where to Pay Your Contributions:

You can make payments at various over-the-counter centers like Bayad Center, ECPay, M. Lhuillier, and SM Business Centers. Additionally, online payment channels provide convenient options for freelancers and entrepreneurs.

Pag-IBIG MP2 Online Payment Channels Payment Methods Accepted
Pag-IBIG Online Payment Facility Maya, Visa / Mastercard / JCB credit cards
GCash GCash wallet wallet
Moneygment app Moneygment wallet, bank deposit, PayPal, ECPay, Dragonpay, 7-Eleven

Instructions for Payment and Monitoring:

When utilizing any online payment facility, designate Modified Pag-IBIG 2 as your payment type and provide your MP2 account number.

Checking MP2 Contributions Online:

Track your MP2 contributions through Virtual Pag-IBIG. Begin by creating a Virtual Pag-IBIG account:

  1. Log in to your Virtual Pag-IBIG account.
  2. Navigate to the “MP2 Savings” section under the Products tab.
  3. View your MP2 contribution payments displayed on the screen.

Follow the same steps to retrieve your MP2 savings account number if needed.

FAQs: Applying for and Investing in Pag-IBIG MP2

1. Pag-IBIG MP2 Contribution Amount: The minimum monthly contribution for MP2 is ₱500, making it an affordable option for those looking to start small investments.

2. Allocation of Contributions: MP2 contributions are invested in Pag-IBIG housing loans, government securities, and corporate bonds, minimizing investment risk.

3. Dividend Earnings: Annual dividends from MP2 savings vary depending on Pag-IBIG’s financial performance and other factors. Sample computations suggest potential dividends ranging from ₱5,718.75 to ₱6,266.14 over a five-year period.

4. Current Interest Rate (2024): The latest dividend rate for Pag-IBIG MP2, as of 2022, stands at 7.03% per annum.

5. Dividend Claim Process: Upon maturity, MP2 dividends can be claimed through Virtual Pag-IBIG or in person by submitting the Application for Provident Benefits form at a Pag-IBIG Fund branch.

6. Early Withdrawal Conditions: While it’s advisable to let MP2 savings mature for maximum returns, early withdrawal is permitted under certain circumstances, including disability, critical illness, or migration.

7. Re-enrollment After Maturity: Upon maturity, you can open new MP2 savings accounts, a strategic move for long-term investments like retirement planning.

8. Treatment of Unclaimed Dividends: Unclaimed MP2 savings after maturity continue to earn dividends based on Pag-IBIG Regular Savings Program rates. After two years, dividends cease, prompting withdrawal of contributions.

9. Pre-termination Policy: Pre-termination of MP2 accounts is possible, with payouts varying based on circumstances. Total disability, retirement, or Pag-IBIG-designated reasons allow withdrawal of savings plus 50% of earned dividends.

These FAQs offer comprehensive insights into applying for and managing your Pag-IBIG MP2 savings, facilitating informed decision-making regarding your financial future.


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