How to Invest in Pag-IBIG MP2

Last Updated – Nov 5, 2023 @ 12:40 pm

I remember an old jingle from a 90’s TV ad (can’t remember which one it is) with the last line, “Mag-impok sa bangko”. 

But while that’s still solid advice today, saving your money in banks is no longer the best option, especially if your goal is to grow your funds via interest.

One such option is the Pag-IBIG MP2, promising an impressive 7% dividend rate for your money.

Compare that to the measly interest rates on most banks (typically less than 2%) and you’ll realize how much more your money can earn using this investment vehicle.

What is Pag-IBIG MP2?

The Modified Pag-IBIG 2 is a savings program available to existing and former Pag-IBIG Fund members (with at least an equivalent of 24 monthly savings) who want to leverage higher dividend earnings (versus that of the regular Pag-IBIG Savings program). 

For as little as 500 pesos, you can take part in a program that lets your money earn as much as 8.11% in dividends (their highest ever recorded dividend rate).

Their 3-year average is a solid 6.96%, way better than what you could get from bank savings accounts or other investment options. You can withdraw your earnings annually or get the lump sum dividend when the fund matures (5 years).

Pag-IBIG MP2 Eligibility

All active Pag-IBIG Fund members are eligible to join the MP2 program.

This includes former Pag-IBIG fund members who currently have other sources of income but were able to have at least 24 months of contribution/savings prior to retirement.

How Much Is the Minimum Amount You Can Save Through Pag-IBIG MP-2?

You can start with as little as Php500 pesos. There is no limit on how much you can contribute.

Just note that if you wish to make a one-time allocation of more than Php500,000, you would have to issue a manager’s or personal check.

How Much Dividends Can You Earn through Pag-IBIG MP-2?

What’s great about the MP2 program is that your savings earn tax-free dividends, at an interest rate significantly higher than that of Pag-IBIG’s regular savings program (and banks).

In 2016-2018, the Pag-IBIG MP2’s average dividend rate is 7.65%. To give you an idea of how much you can earn, check out the data on the following table. 

Note: Pag-IBIG MP-2 dividend rate was 5.66% in 2021

It is based on Pag-IBIG Fund’s own sample computation (using a 7.5% dividend rate) for a Php500 and Php1000 monthly saving plan. 

Related: Investment Statistics in the Philippines

Why Should You Avail the Pag-Ibig MP2?

There are plenty of reasons to take advantage of the Modified Pag-IBIG 2 Savings program. Here are the most important ones:

  • High-interest rate means your money can earn more versus Pag-IBIG’s regular savings program and traditional banks. 
  • The gains you earn are tax-free. 
  • You can opt to have your earnings withdrawn to your bank or leave it until the fund matures (5 years) for maximum compound growth
  • MP2 Savings are government-guaranteed (annual dividend performance may vary though as it depends on several factors, such as fund performance, for example)
  • No sales load or fees 
  • Very low minimum entry fee (Php500) and no limit to how much you can save
  • The process for opening an account is easy and open to all existing and former Pag-IBIG fund members with at least 24 months savings
  • You can withdraw your money anytime 

Pag-IBIG MP2 Pros & Cons


  • Superb interest rate at 7% means your money can earn more
  • Tax-free earnings on your savings
  • Your MP2 savings are guaranteed by the government in full
  • Low minimum amount to join with no cap on maximum allocation
  • Zero fees and charges
  • Easy to enroll
  • Withdraw your money anytime
  • You can open multiple Pag-IBIG MP2 savings accounts
  • Easily pay via multiple payment facilities (if not doing it via salary reduction)


  • 5-year lock-in/maturity period
  • No rollover option after the maturity period. You’ll have to open a new MP2 account as the dividend rates will cease to apply if your money is unclaimed beyond 2 years after the lock-in period.

How to Enroll an Account and Invest in Pag-Ibig MP2?

You can enroll via the Pag-IBIG website or download the MP2 enrollment form here to complete and submit at any Pag-IBIG branch together with a valid ID and a passbook or ATM card of your nominated bank. 

Valid IDs include:

Steps for Walk-in Enrollment via Pag-IBIG Branches

Step 1: Download and complete the Pag-IBIG MP2 Savings form

Step 2: Visit the nearest Pag-IBIG 2 branch and submit the form and present your valid IDs

Step 3: The Pag-IBIG personnel will encode your data and create your Pag-IBIG MP2 account.

You’ll be given the MP2 Savings account number which you’ll use when you want to deposit/remit savings.

Step 4: You have the option to make your first deposit upon the creation of your account.

Simply pay your preferred amount at the cashier so they can allocate it on your newly-created MP2 savings account.

Steps for Pag-IBIG MP2 Online Enrollment

Step 1: Visit Pag-IBIG’s Online MP2 Enrollment.

You’ll be asked to enter your Pag-IBIG MID number along with your name and DoB. Don’t forget to enter the CAPTCHA security code before hitting the Submit button.

Step 2: If you don’t know (or have) a PAG-IBIG MID number, you can visit this page and click on Membership Registration to secure one.

Step 3: After hitting Submit, you’ll be redirected to a new page that will ask you to provide your personal details.

You’ll also be asked to indicate how much you’ll allocate monthly into your MP2 Savings account.  

Step 4: Read the Terms and Conditions at the bottom and make sure to enter the CAPTCHA code on the box before hitting “Submit My Application”

Step 5: You’ll be redirected to a page confirming that you were able to successfully enroll.

Your MP2 Savings account number will be provided on this page as well. 

Step 6: After reading the Terms and Conditions, click on the “Print/Save Your Enrollment Form” link at the bottom to print your form.

Write your name with the signature along with the date on the spaces provided.

Step 7: Visit any Pag-IBIG branch to submit the form and present your valid IDs.

Pag-Ibig MP2 Investing Tips

The Pag-IBIG MP2 savings program is an excellent way to build assets while incurring minimal risk.

The 5-year maturity period is perfect for short to medium investment horizon if you want both capital preservation (with superb inflation protection) plus growth via interest. 

And since the MP2 program is such a great tool for both saving and investing, it makes sense to look for ways to maximize and leverage its use. Here are a few tips to make the most of the Pag-IBIG MP2 program.

1. Save more to gain more

Compound interest has a snowball effect—the more you save, the bigger the asset base. And a larger asset base results in bigger gains once compound interest gets applied.

Take note, while the minimum amount for saving is just Php500, there is NO LIMIT on how much you can allocate.

So if you have a hundred thousand pesos, for example, you can put that whole amount into your Pag-IBIG MP2 account and reap bigger dividends annually or after the 5-year maturity. 

Using Php100k (one-time deposit) with an interest rate of 7%, for example, your year-end dividend payout will be Php7,000.

Seven thousand pesos for “parking” your money for a year is an excellent deal, especially if you think about the typical 0.25% annual interest rate you’ll get from regular bank savings accounts (which will only net you an abysmal Php250 pesos for a year for your Php100k). 

Even the best time deposit interest rates from popular banks (which tops at around 3-4%) can’t match the average interest rate from MP2.

Plus, with the MP2, you have the option to receive the annual payout from your gains. 

2. Leverage the Rollover Option

In the US, employees are allowed to roll over (transfer) their 401k contributions from one employer to another.

This ensures continuity for building their retirement fund without incurring any penalties or charges.

The Pag-IBIG MP2 Savings Fund has a (somewhat) similar rollover feature, it allows account holders to roll over their assets into a new MP2 account once the current one reaches maturity (5 years) and essentially enjoy the same (more or less) interest rate for another 5 years.

Granted, it’s not a 100% seamless (no break in compounding) solution, but at least you get to take advantage of all the benefits.

And assuming you rollover the full amount, your larger asset base will, of course, reap even bigger gains from compound interest.

To take advantage of this tip, make sure to create a new MP2 account prior to the closure of your existing one so the rollover will be faster and hassle-free.

3. Have Your Money Work For You (literally)

The great thing about having your money invested in something that gives you at least 7% gains on your money (historically) is that you can put a large enough amount of money in it and have it “pay you” each year until it matures.

In our example earlier (see #1), Php100k will net you 7,000 pesos at the end of the year. But what if you have more to invest?

Stretching our allocation to a one-time deposit of Php300k at 7%, for example, will get you 21,000 pesos in dividend earnings.

Now, 21,000 pesos for investment gains for a year using “just” Php300k in deposits is a very good return for your investment. 

But what if you have more? What if you have a million pesos to invest? Well, how does 70,000 pesos in earnings per year sound to you? All without breaking a sweat.

You could literally fund a significant portion of your child’s tuition per year with just the earnings from your MP2 account. Now that’s a smart use of your money.

And did I mention that earnings are tax-free?

Plus, here’s the kicker: the government guarantees investments made under the MP2 program.

Think about that for a second.

The government essentially shoulders the risk on your investment and they won’t tax your earnings.

All at an impressive interest rate. Do note, however, that interest rates are still dependent on various factors so it may change.


Here are a few more important points regarding the Pag-IBIG MP2 Savings Program.

How is the MP2 dividend computed? 

To calculate your MP2 dividends (earnings) for the year, simply get the total cumulative contributions for the year then divide that by 12 to get the average monthly balance. 

If you are allocating Php1,000 per month, for example, it would look like this:


Total Annual Cumulative Contributions = Php 78,000
Average Monthly Balance = Total Annual Cumulative Contributions / 12 months

Average Monthly Balance = 78,000 / 12
Average Monthly Balance = 6,500

To get the actual annual dividends (amount), multiply the Average Monthly Balance with the Interest Rate. For this example, we’ll use 7.5% interest rate:

Annual Dividend = Average Monthly Balance x Interest Rate
Annual Dividend = 6,500 x 7.5%
Annual Dividend = 487.5

This means saving 1000 pesos per month will earn you Php487.5 at the end of the year. 

Here’s a sample table from the Pag-IBIG website showing annual dividends (up to year 5) for a 1000-pesos per month contribution. 

Why does MP2 have a high dividend rate?

The short answer is that the Pag-IBIG fund has been posting excellent performance in the last few years.

The Pag-IBIG Fund invests mostly in housing finance (about 70% of its total funds) while the rest are in government securities and corporate bonds. 

Is there a maximum limit for the amount you can save with MP2?

There is no limit on how much you can save under the Pag-IBIG MP2 program.

Just note that for a one-time deposit of more than Php500,000 you’ll have to issue a manager’s or personal check.

Where can you get your dividends?

You can withdraw your full MP2 savings from any Pag-IBIG branch after it matures in 5 years.

If you opt for the annual dividend option (you’ll get paid for the gains via interest of your balance), Pag-IBIG can have it sent straight to your savings or checking account with banks that are accredited by Pag-IBIG.

Where can you pay your contributions?

You can set up an automatic salary deduction with your current employer, pay at any Pag-IBIG branch, or via accredited Pag-IBIG Fund collection partners. 

List of Payment Facilities for Pag-IBIG Fund:

  • Over the counter (Bayad Center, M. Lhuiller, ECPay, Savemore, SM Hypermarket, 7-11 ECPay)
  • Credit Card (via Pag-IBIG Fund’s Online Payment Facility)
  • Digital Payment (GCash, PayMaya, Coins, Moneygment Mobile app)

Can I open a new MP2 account once the current one matures?

Yes, you can. Actually, you can open multiple accounts even if the active account hasn’t matured yet. 

What if I want to withdraw my money before it matures?

You’ll be allowed to withdraw your MP2 Savings prior to maturity under the following situations:

  • Total disability or insanity
  • Separation from service by reason of health
  • Death of the member or of any of his/her immediate family member
  • Retirement (except when the MP2 Saver is already a retiree)
  • Permanent departure from the country
  • Distressed member due to unemployment limited to layoff and/or closure of company
  • Critical illness of the member or any of his immediate family member, as certified by a licensed physician, subject to the approval of Pag-IBIG Fund
  • Repatriation of an Overseas Filipino Worker (OFW) member from the host country
  • Other meritorious grounds as may be approved by the Pag-IBIG Fund

Note that if the reason to pre-terminate the account is none of the above, the person will only be entitled to half (50%) of total dividends gained (applies to account holders who opted for the 5-year compound option).

If the person is on annual dividend set up and pre-terminates, he/she will only be allowed to receive the total savings (no dividends).

How can I check the status of my Pag-IBIG MP2 Savings?

You can check your contributions via an online portal called Virtual Pag-IBIG. Simply create an account by completing the required fields and activate it by visiting the nearest Pag-IBIG branch.

If you have a Pag-IBIG Loyalty Card Plus, you just need to enter your Pag-IBIG MID number, choose the partner bank, and enter the last 4 digits of your card to create your Virtua Pag-IBIG account.

About Amiel Pineda

Amiel Pineda is the Head of Content at Grit PH.

He started freelance writing in 2010 doing product reviews and tech news. In 2018, he became a full-time freelancer, writing in the financial space and creating content for clients in various niches.

Prior to freelancing full-time, he worked 7 years in the financial services industry for a Fortune 500 company.

He also writes on his personal blog, Homebased Pinoy (, where he shares tips and guides as a work-from-home freelancer, along with NFT-game guides.

Education: Technological Institute of the Philippines (Bachelor of Science in Electrical Engineering)
Focus: Freelancing, Entrepreneurship, Financial Products, Investing & Personal Finance

Reader Interactions


  1. Seira says

    Paanong compute ba ginagawa jan? Natatanga ako. Sabi divident rates of around 7 percent. Pero sa charts and numbers na nakalagay
    for example for monthly hulog of 500, which means 6k yearly, ang divident ay 240+. What the hell, that’s for around 4 percent! Hindi Tally!
    Pa-explain please!

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