Grow Your Money: How to Apply for and Invest in Pag-IBIG MP2

Venus Zoleta

Venus Zoleta

Last updated January 24, 2024

According to Pag-IBIG Fund Chief Executive Officer Marilene C. Acosta, the biggest growth in the agency’s savings collections came from MP2 savings and contributions—more than the mandated monthly savings. Indeed, from January to September 2023, Pag-IBIG MP2 savings reached ₱35.13 billion, a 14% growth from the ₱30.81 billion collected as of September 2022.[1] 

After all, the competitive returns offered by MP2 make it one of the best options to grow your hard-earned money

In this article, you’ll understand more about why it’s an investment worth considering. Learn how to apply for and invest in Pag-IBIG MP2. 

What is Pag-IBIG MP2?

The Modified Pag-IBIG II or MP2 is an optional savings program with a five-year maturity for current and former Pag-IBIG Fund members. It’s designed for those who want to grow their savings and earn higher dividends in addition to their Pag-IBIG regular savings. 

Related: Saving vs Investing: What are the Similarities and Differences?

❤️ Pag-IBIG MP2 Key Features

how to apply for and invest in Pag-IBIG MP2 -  key features

The MP2 program makes saving and investing money easy, affordable, and profitable for Filipinos. Check out some basic information about the savings program:

  • Budget-friendly investment - For as low as ₱500 monthly, you can invest in MP2. No penalties if you miss a contribution for certain months (though it's best to regularly remit your MP2 contributions).
  • Government-guaranteed savings - You won't lose your principal since the Philippine government guarantees it. But your savings may be subject to a different computation scheme considering annual dividend performance and other factors. 
  • Tax-free dividends - Receive your MP2 dividends without tax deductions either every year or in five years.
  • High dividend rate - The Pag-IBIG MP2 interest rate is higher than that of the regular Pag-IBIG savings program and even those of bank accounts, time deposits, and other investment vehicles.
  • No limit to the amount you can save - Remit as much money into your MP2 account as your budget allows. For one-time payments exceeding ₱500,000, a personal/manager's check is required.
  • Multiple MP2 savings accounts - You can open as many MP2 accounts as you'd like. This is ideal if you're saving money for different goals, like emergencies, tuition, travel, retirement, etc.
  • Five-year maturity period - Your MP2 savings will mature in five years, after which you can withdraw your money. This makes the MP2 savings program ideal for medium-term investment goals.

Read more: Invest Early to Build Wealth: This is Why Investing is So Important

What are the Advantages of the MP2 Program?

Like any other investment vehicle, the MP2 Savings Program offers a lot of benefits for its investors. Here’s what you need to know. 

👍 High Annual Interest Rate and Low Required ADB 

The MP2 program can let you earn as much as 7.03% of your savings fund per year compared to other high-yield savings accounts. Check out this table comparing the interest rates of Pag-IBIG MP2 with the rates of banks. 

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 MP2’s average daily balance to earn interest is computed by multiplying the minimum monthly remittance of ₱500 by 12 months. Although the total average daily balance required to earn interest may be higher compared to a few other banks, the average annual interest is way higher. 

👍 Option to Withdraw Dividends Each Year or Compound for 5 Years 

MP2 allows you to withdraw your dividends each year or to add them to your savings account to earn compounded interest. If you choose to withdraw it directly to your bank account, you can use the money to fund essentials or emergencies. 

On the other hand, if you have it compounded for five years, expect to earn more from your savings. You can also reinvest after the five-year maturity period. 

Here’s a sample computation if you opt to compound the 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


Disclaimer: The computation above is a conservative estimate intended for comparison of your possible earnings from MP2 Savings (at 6.96% per annum dividend rate) and from bank savings (at 4% annual interest rate). This does not take into account the exact deductions (taxes or fees), additions, or exact interest earned imposed by banks and Pag-IBIG, which vary within the maturity period. It’s important to note that earnings from bank savings are taxable, while dividends earned from the MP2 program are tax-free and computed against 70% of your fund.[2]

👍 Option to Withdraw Your Money Anytime

Although the MP2 savings can be maintained for five years, you still have the option to withdraw your money anytime in case of emergencies. 

👍 Easy Account Opening Online 

By filling out the online Pag-IBIG MP2 online registration form, you can automatically enroll and start paying your contributions anytime. 

Read more: SSS PESO Fund vs MP2: Which is the Better Savings Program for You?

What are the Disadvantages of the MP2 Program?

If there are benefits to this savings program, there are also drawbacks. Here are some things to take note of.

👎 Account Matures in 5 Years

Compared to bank savings which can be maintained for as long as you want, your MP2 savings mature in five years. You’ll need to open a new MP2 account again when your savings fund reaches maturity. 

👎 No High Dividend Rate After the 5-Year Lock-In Period 

The high dividend rate won't apply anymore if you opt not to claim your money after the five-year maturity period. 

Related reading: To Invest or Not: The Best Investments for Every Risk Appetite

Who Can Enroll in the MP2 Program?

how to apply for and invest in Pag-IBIG MP2 - who can enroll

You qualify for the MP2 savings program if you belong to any of the following groups:

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

Inactive members who have stopped paying Pag-IBIG contributions can proceed with their MP2 savings enrollment by resuming their payments until they reach the minimum 24-monthly contribution requirement.

Not registered with the Pag-IBIG Fund yet? Register online as a Pag-IBIG member[3] and pay contributions for at least 24 months before opening an MP2 savings account.

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Pag-IBIG MP2 Savings Requirements

Prepare the following requirements for your Pag-IBIG MP2 application:

  • Valid ID
  • Accomplished Modified Pag-IBIG II Enrollment Form[4]
  • ATM card or passbook of your bank account where you'd like to receive your MP2 savings and dividends

How to Apply for Pag-IBIG MP2

How to apply for an MP2 investment? The first step is Pag-IBIG MP2 registration, which can be done online or in person at a Pag-IBIG Fund office. 

👉 MP2 Savings Online Enrollment 

how to apply for and invest in Pag-IBIG MP2 - online enrollment

How to enroll in MP2 online? Follow these steps:

  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. Type the CAPTCHA code.
  4. Click the Submit button.
  5. In the Desired Monthly Contribution field, enter the amount you wish to remit every month for your MP2 savings.
  6. Select your preferred option from the following dropdown menus:
    • Preferred Dividend Payout: Whether you'd like to receive your MP2 dividends every year or by the end of the five-year term
    • Mode of Payment: Whether you prefer to pay your MP2 contributions through salary deduction, over-the-counter at any Pag-IBIG branch, or through any Pag-IBIG Fund-accredited collecting partners
    • Source of Funds: Your main income source where your MP2 payments will come from
  7. Click the Submit button.
  8. Your completed Modified Pag-IBIG II Enrollment Form will be displayed, which contains your 12-digit MP2 savings account number. You may save this form as a PDF file or print it.

👉 MP2 Savings Manual Enrollment 

If you have other transactions you need to complete at the nearest Pag-IBIG office, then you might as well open your MP2 savings account there. Make sure to check the Pag-IBIG office's operating hours, as they can change anytime.

How to Invest in the Pag-IBIG MP2 Program

how to apply for and invest in Pag-IBIG MP2

As soon as you're done with your Pag-IBIG MP2 enrollment, you can start saving under the investment program. You can either make a one-time lump sum payment or a monthly contribution of smaller amounts to your MP2 savings account.

💸 Modes of Payment

There are three major ways to pay your MP2 contribution:

  • Salary deduction by your employer
  • Personally at any Pag-IBIG branch
  • Any accredited collection partner

For employees, the best Pag-IBIG MP2 mode of payment is through salary deduction, as MP2 savings are automatically deducted from the salary and remitted to the MP2 account.

For freelancers, entrepreneurs, and unemployed Pag-IBIG members, the most convenient payment mode is through accredited third-party payment channels, especially online facilities. Learn more about them below.

💸 Where to Pay Your Contributions

Over-the-Counter Payment Centers:

  • Bayad Center
  • ECPay
  • M. Lhuillier
  • SM Business Centers, including Savemore and SM Hypermarket bills payment counters

Online Payment Channels:

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

Whatever online payment facility you use, choose Modified Pag-IBIG 2 as your payment type and provide your MP2 account number.

How to Check Your MP2 Contributions Online

how to apply for and invest in Pag-IBIG MP2 - how to check

You may monitor your posted MP2 contributions through Virtual Pag-IBIG.[5] But before you can do that, create a Virtual Pag-IBIG account first.


After your Virtual Pag-IBIG account is activated, you can verify your MP2 savings online:

  1. Log in to your Virtual Pag-IBIG account.
  2. On the left menu, select MP2 Savings under the Products tab.
  3. View your MP2 contribution payments on the screen.

If you want to know how to get your MP2 savings account number, follow the steps above as well.

How to Apply for and Invest in Pag-IBIG MP2: FAQs

how to apply for and invest in Pag-IBIG MP2 - frequently asked questions

1. How much is the Pag-IBIG MP2 contribution?

The minimum amount you can save in your MP2 account is ₱500 per month. This makes Pag-IBIG's savings program one of the most affordable for Filipinos who want to start investing small.

2. Where are contributions invested?

MP2 contributions paid by Pag-IBIG members are invested in Pag-IBIG housing loans (which earn interest paid by member-borrowers), government securities, and corporate bonds. 

Investing money in fixed securities makes the Pag-IBIG MP2 investment less risky compared to stocks and other high-risk instruments.

3. How much dividends will I earn from my MP2 savings?

The annual MP2 dividends you'll receive will depend on the dividend rate set by Pag-IBIG for a particular year during your investment term. The annual rates vary depending on Pag-IBIG Fund’s financial performance and other factors.

According to a sample MP2 computation at the Pag-IBIG website,[6] if you've been saving ₱500 from 2020 to 2024, you're likely to receive a total dividend of ₱5,718.75 (if you chose to get your dividends annually). Your total dividend will be higher at ₱6,266.14 if you opt to get paid the lump sum after your MP2 account's five-year term.

4. What is the interest rate of Pag-IBIG MP2 this 2024?

The latest Pag-IBIG MP2 dividend rate (as of 2022) is 7.03% per annum.[7] 

5. How will I receive my MP2 dividends?

You can claim your MP2 Savings after its five-year maturity through the Virtual Pag-IBIG facility. You can also claim it in person. Fill out the Application for Provident Benefits form[8] and submit it to the nearest Pag-IBIG Fund branch.

6. Can I withdraw my MP2 savings before its maturity?

Ideally, like with other investments in the Philippines, it's best to let the funds in your MP2 account grow until your account matures. This way, you get to maximize your profits.

However, an unfortunate life situation might make withdrawing your MP2 savings necessary. The Pag-IBIG Fund allows early withdrawal under scenarios such as the following:

  • Total disability or insanity
  • Termination from employment due to health reasons
  • Death/critical illness of the MP2 account holder or an immediate family member
  • Retirement
  • Migration to another country
  • Unemployment due to layoff or company closure
  • OFW repatriation from the host country

You may withdraw your savings for a reason other than those allowed by Pag-IBIG. But you'll only receive half of the total dividend earned (if you chose to receive dividends after five years) or only your contributions (if you chose the annual dividend payout option).

7. Can I enroll a new MP2 savings account after maturity?

Yes, you can open new MP2 savings accounts once your existing account matures. This is a good strategy if you wish to invest your money in the long term, like for retirement.

8. What will happen if I don't claim my dividends?

Unclaimed MP2 savings after the five-year maturity will keep earning dividends based on the dividend rates of the Pag-IBIG Regular Savings Program. After two years, it will no longer earn dividends. You should just withdraw your contributions.

9. What happens if I decide to pre-terminate my account?

Pag-IBIG allows for account pre-termination. However, the payouts differ depending on the circumstance:

  • If the reason for pre-termination is a total disability, retirement, or any other reasons stipulated by Pag-IBIG, you can withdraw your entire savings plus 50% of the dividends earned. 
  • But if the reason for pre-termination is not listed in the MP2 Savings terms and conditions, you can withdraw your entire savings without any dividends earned.

Read more:PERA in the Philippines: Enjoy Tax Incentives and Comfortable Retirement

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Final Thoughts

Fortunately, the process of how to apply for and invest in Pag-IBIG MP2 is not that complicated.

It's a good way to build your savings and fund your financial goals in the future. It makes a great passive income source, as you let a small amount of money earn for you. Since it's backed by the government, you can also rest assured that you won’t lose your money.

By diligently contributing each month for five years, you build not just a savings fund but a good savings habit. 

Apply for a personal loan through Moneymax


DISCLAIMER: The opinions expressed by the writer are theirs alone, and do not reflect the opinions of Moneymax and/or its affiliates or any employee thereof. Neither Moneymax or its affiliates are responsible for the accuracy of any of the information supplied by the guest writer. The opinions expressed in this blog are for general informational purposes only and are intended to provide education about the financial industry.

Nothing in this blog constitutes investment or financial advice or any recommendation that any security, portfolio of securities, investment product, transaction or investment strategy is suitable for any specific person. This material does not take into account your personal circumstances, finances, goals and/or objectives; all of which are unique to you. Readers must make an independent decision regarding investments or strategies mentioned on this blog or elsewhere on We strongly recommend you consider seeking advice from your own financial or investment adviser before taking any action. We do not make any representation or warranty as to the accuracy, completeness or correctness of the information set out in this article.

Venus has almost 20 years of combined experience in content marketing, SEO, corporate communications, and public relations. Most of her career was spent creating informative articles on personal finance and digital marketing. She also invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. Venus graduated cum laude with a Journalism degree from the University of the Philippines Diliman. A hardcore Hallyu Tita, she loves bingeing Korean shows on Netflix while bonding with her cats. Follow Venus on LinkedIn.


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