Pag-IBIG Fund’s Modified Pag-IBIG II (MP2) is another investment option that we can explore. It is a government savings program for Filipinos who are looking for affordable, flexible, low-risk options. OFWs are eligible to enroll, provided they have an active Pag-IBIG I membership.
Here is an excerpt from the Press Release:
“The MP2 savings program is a voluntary savings program that
provides active Pag-IBIG members with another savings
option that yields higher annual dividend rates. The MP2 has
a term of only five years. All savings, as well as dividends
already earned under MP2, are guaranteed in full by the
For 2017, Pag-IBIG Fund declared an unprecedented 8.11%
dividend rate for MP2. The dividends were credited to the
savers’ accounts in the first quarter of 2018.”
- Higher interest rates than bank savings accounts: based on 5.34 % for 2015; 7.43% for 2016; 8.11% for 2017
- Monthly payments not required
- Tax-free and guaranteed by the government: secure, no risk of losing money
- Affordable: minimum monthly deposit of only Php 500
- You need to be a Pag-IBIG I member
- Filled out MP2 Registration Form
- Copy of Passport (for OFW’s)
I applied through Orient Exchange (Spinneys Supermarket in Karama/Bur Dubai area). I paid AED 66 for my contribution for January 2019 – March 2019 to reactivate my account. The minimum contribution is Php 200 per month, so the amount is up to you.
The receipt of payment is my proof that my Pag-IBIG I account is active. The lady in Orient Exchange explained that they will be collating all filled application forms (which attached receipt as proof of reactivation) and sending them to Philippine Consulate all at once.
I will be getting a call within a month if my application is approved or if I need to provide other documents. Until then, I will set aside an amount per month for my MP2 savings.
They don’t have online payment facility so I have to send money though remittance center. It is better to remit in bulk (quarterly or bi-annually) to maximise the cost of the remittance fee which is around AED 20. Another thing that we cannot do online is check your MP2 contribution, so it is best to keep the receipts of your payment as these are your only proof.
The MP2 savings and dividends can be claimed after five (5) years but allows early withdrawal for certain cases such as total disability or insanity, job loss due to sickness, or death. After 5 years, you have an option to renew for another 5 years. So make sure to invest only the money that you don’t need for the next 5 years.