Join 76,221 users and earn money for participation

Invest in Pag-IBIG MP2: Why you should?

4 17 exc boost
Avatar for CrazyRichFilipina
Written by   104
3 months ago

Pag-IBIG is a corporation controlled by the government that primarily provide affordable housing loans to Filipinos. The income that they gain from loaning out the funds is what they pay back to their members as dividends.

If you aren’t familiar yet with Pag-IBIG Fund, its Regular Savings Program, and its Modified Savings Program or “MP2”, read this article first: Invest in Pag-IBIG MP2: What is that?

Here are the reasons on why you should consider investing in Pag-IBIG MP2...

Why invest in Pag-IBIG MP2?

1. Government-backed

It is backed by the government. It is perhaps the safest investment that can be able to provide much return. Wherein the average interest for the past 5 years (2016-2020) is ~7.26%. It is much higher than the traditional banks like Metrobank, BDO, BPI, etc. who give around 0.15% annual interest. It is also higher than the online banks like GSave, CIMB UpSave, Tonik, Komo, DiskarTech, etc. who give 2.5% - 4.5% annual interest. The dividends or the interests of the investor depend on the performance of the Pag-IBIG Fund such as the loans and how much people pay back.

Screenshot from Pag-IBIG Fund

2. Guaranteed

The money that an investor invested or the capital is guaranteed by the government. The people will receive it back. It is by law.

3. Tax-free

MP2 is free from taxes. If you compare it to other forms of investments such as bonds and stocks... Bonds has a withholding tax for the interest that you gain on your investment. On the other hand, stocks charge some transaction fees along with taxes when you do buy and sell transactions.

4. Start with only 500

In the regular savings program, for the employees, there's a required minimum monthly contribution. For the OFW, self-employed, or students, it is not required.

In the MP2 savings program, it is not required for everyone to deposit or contribute monthly. Everything is up to you whether how much or how often you want to deposit into the account as long as it is at least ₱500. It is an attainable amount for a lot of Filipinos. Get started right away.

5. No Limit

You can deposit as small as ₱500 and as big as ₱100,000 or even ₱1,000,000. Basically, if you have the large amount of money that you are willing to place in a safe investment, MP2 is here for you.

6. Multiple MP2 Accounts

Let's say you want to open multiple MP2 accounts for different purposes:

  1. Dream House

  2. Car

  3. Travel to Europe

  4. Education

It is perfectly fine to open as many as MP2 accounts that you want. There's no limit.

7. Open an account online

In this time of pandemic, opening an MP2 account online is very easy and convenient. You don't need to go to their physical branch anymore and you can completely avoid physical interactions.

Conclusion

Why invest in Pag-IBIG MP2?

  1. Government-backed

  2. Guaranteed

  3. Tax-free

  4. Start with only ₱500

  5. No Limit

  6. Multiple MP2 Accounts

  7. Open an account online

Photo from Business News Philippines

This is my part 2 article all about Pag-IBIG MP2 answering the "why".

Read the part 1 here: Invest in Pag-IBIG MP2: What is that?

Read the part 3 here: Invest in Pag-IBIG MP2: How to get started Online? & My Own Experience

Take note: I personally only invest in MP2, I don't work under Pag-IBIG Fund as I'm still a student. I just want to share this investing information to my fellow Filipinos.

Thank you for reading! ❤️


Previous Articles:

Get to know me more on my noise.cash: CrazyRichFilipina

Date Published: July 12, 2021

3
$ 7.95
$ 7.73 from @TheRandomRewarder
$ 0.05 from @francescawrites
$ 0.05 from @FarmGirl
+ 3
Sponsors of CrazyRichFilipina
empty
empty
empty
Avatar for CrazyRichFilipina
Written by   104
3 months ago
Enjoyed this article?  Earn Bitcoin Cash by sharing it! Explain
...and you will also help the author collect more tips.

Comments

It's great to see financial literate people here in the platform! Actually, as a broke college student who've been saving up, I encountered MP2 savings a long time ago and personally it's a low-risk savings program with dividends that surely have a guarantee payback at the end though to double ang savings na you can get with crypto savings/staking... being in MP2 is really fit for your fiat money instead of idling it in the bank. Love your articles, keep it up! Your niche here is pretty impressive, tbh.

$ 0.00
3 months ago

Yes. It's perfect for someone who wants a safety net for their fiat, and grow them at the same time. Thank you po. It means a lot 😊

$ 0.00
3 months ago

I was amazed after my loans gonna take this opportunity matagal ko na talaga inaaral tong MP2 na to eh haha

$ 0.00
3 months ago

Make it happen po this year. Good luck :)

$ 0.00
3 months ago