I have published 3 articles about Pag-IBIG MP2 already last year, July 2021. In those articles, I have discussed detailed information about this investment vehicle. You can check them out here:
But for brief descriptions...
What is Pag-IBIG?
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.
What is Pag-IBIG Regular Savings Program?
Before you can invest in MP2, you are required to be a Regular Pag-IBIG Member first. It is what most of the Filipinos are familiar with. Every employed Filipinos are required to become a Pag-IBIG member. Usually, the employed Filipinos have a monthly deduction from their salary that goes to their Pag-IBIG contribution.
What is Pag-IBIG MP2?
Modified Savings Program or MP2. It is Pag-IBIG's initiative to give opportunities for their members to let their money grow even more. MP2 earns higher dividends than the regular savings program but it's voluntary, unlike the regular savings program.
The regular savings program has a maturity period of 20 years, while MP2 only have 5 years.
Why invest in Pag-IBIG MP2?
Government-backed
Guaranteed (meaning, your money will not decrease, unlike stocks and crypto. in MP2, our money only goes up! cool, right?)
Tax-free
Start with only ₱500
No Limit
Multiple MP2 Accounts
Open an account online
You can start with just ₱500 (student and hampaslupa/slap soil friendly kaya perfect 'to sakin haha)
How to open your own Pag-IBIG MP2?
Follow the steps in this article: Invest in Pag-IBIG MP2: How to get started Online? & My Own Experience
Now that we are done discussing the brief description about it... what's the update regarding my own Pag-IBIG MP2 investment? Did my money really grow? Or is it just a scam?
Well, last April 6 in the evening, I checked my portfolio through my virtual Pag-IBIG account and I am glad that my 2021 dividends have finally arrived!
Here's the update!
My total contribution: ₱35,600
My total dividends: ₱1,598.53
2020 dividends: ₱107.10
2021 dividends: ₱1,491.43
My total savings: ₱37,198.53
My 2020 dividends was smaller because I have only invested a small amount at that time. But hey! ₱107.10 to ₱1,491.43 is such a glow up! Haha. It may be a small amount to others but it's already fine for me and I consider it as one of my passive income. If I putted my ₱35,600 money in a traditional bank, there's no way that I am going to get a thousand in return. So I really like MP2 because of the high interest return plus it is being compounded.
Closing Thought
This may sound so cliche but I am putting this out here not to brag but just to share my personal experience with this favorite investment vehicle of mine. Yep, it's so far my favorite because there's no risk in it, meaning I don't have to worry about it cause my money doesn't decrease at all unlike with crypto and stocks. I can sleep peacefully with MP2.
I highly recommend this to my fellow students, beginners in investing, and those who have a low-risk appetite.
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Date Published: April 8, 2022
500 pesos is the minimum mp2 deposit? 20 years pala yong regular matagal tagal haha.