How to invest in Pag-IBIG MP2 for OFW

There is a lot of secure investment opportunities for OFWs (Filipino Overseas Workers). One of these is through Pag-IBIG MP2, a program of the Home Development Mutual Fund (HDMF), better known in the Philippines as Pag-IBIG.

Benefits of investing in Pag-IBIG MP2

Unlike compulsory contributions, the modified Pag-IBIG 2 (MP2) is not required. But this voluntary savings program is available for those who have extra cash and wish to invest in something that is tax free, offers higher interest rates than those offered by banks, and is guaranteed by the government.

Thus, the MP2 savings program is perfect for OFWs.

Pag-ibig MP2 for OFW

Photo credit: Pag-IBIG

Although the interest rate is not fixed, it should be much higher than those offered by banks. Dividend rates fell from 4.63% in 2011 to 8.11% in 2017. The rate fell to less than 8% for the following years but still above 7%.

There are also two options on how you can get your dividends for the MP2 savings program. It is possible to benefit from the annual payment of dividends credited to banks accredited by the Pag-IBIG Fund or by check. The other option is to simply let your money grow and later receive the full dividend, compounded annually, at the end of the 5 year maturity period.

Pag-ibig MP2 for OFW

Photo credit: Pag-IBIG

The great thing about Pag-IBIG MP2 is that there is actually no limit to the money you can save with the program. However, if you plan to invest more than 500,000 Php, you must issue a personal check or a manager’s check.

Additionally, you can choose to open and maintain multiple savings accounts through the MP2.

After the 5-year term ends, your savings will continue to pay dividends for another 2 years. Thereafter, the fund remains inactive and will no longer pay dividends. However, you can still choose to reinvest it by transferring the funds to a new MP2 account.

So where does Pag-IBIG invest the money? A lot of people are curious about how their money can grow. The good news is that this investment is being used to help others through the home loan program. At least 70% of the investable funds of the Pag-IBIG Fund go to financing housing. The rest is used for corporate bonds and government securities.

Pag-ibig MP2 registration

Photo credit: Pag-IBIG

How to invest in Pag-IBIG MP2

To invest, you can follow these steps:

  1. Register as a Pag-IBIG member. Note that although this is not a mandatory savings program, the MP2 is only open to Pag-IBIG members. So make sure you are one.
  2. Sign up for the MP2 program. There are two ways to do this. You can register at the nearest Pag-IBIG office or do so online via this link:
  3. Choose the payment method. Payment methods include salary deduction, over the counter (OTC), through any Pag-IBIG accredited collection partner or through the online payment platform on the Virtual Pag-IBIG website.
  4. After successful enrollment, make sure you pay the amount you plan to invest per month. The minimum monthly contribution is 500 Php for a period of 5 years.

So if you are an OFW looking for a safe, convenient and secure investment option, you can open a savings account through this Pag-IBIG MP2 program.

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