Curious about Pag-IBIG MP2? Then you’re on the right page since we’ll discuss some of the most frequently asked questions about Pag-IBIG MP2 here.
FAQs about Pag-IBIG MP2
Is Pag-IBIG MP2 a good investment?
Yes, Pag-IBIG MP2 is widely regarded as a good investment option for Filipinos who want to save and earn more than they would with a regular savings account or time deposit. It is designed to provide higher dividends than the regular Pag-IBIG savings program. The risk of losing your investment is low because the fund is managed by a government agency. Since its launch in 2010, MP2 has consistently offered attractive dividend rates that have outperformed inflation.
How much is the monthly contribution?
The minimum monthly contribution for Pag-IBIG MP2 is 500 pesos, but you can choose to contribute more if you want. There is no maximum limit to the amount you can save, so you can put in as much as you can to maximize your earnings.
What are the benefits of Pag-IBIG MP2?
The main benefit of Pag-IBIG MP2 is the potential to earn higher dividends than the regular Pag-IBIG savings program. MP2 dividends are based on the fund’s annual net income, and they are tax-free. You can also withdraw your savings after five years of membership, unlike the regular Pag-IBIG savings program which requires a total of 20 contributions or 20 years of membership (if there are no gaps in contribution) before you can withdraw.
Note: it is possible to withdraw your savings (from both MP2 and Regular savings) at an earlier date but subject to certain conditions.
Can I create more than 1 account?
Yep, you can. However, they will have different maturity periods.
Do I have to contribute on a monthly basis?
It’s a voluntary savings program, so you can do it on a monthly basis if you want. Or you can just put in one big amount and wait for 5 years. Heck, you can even add new contributions anytime you want. Let’s say you put in 10K in January, then contribute 500 pesos by June, and then 2K in October. That works too.
Are the dividends tax-free?
Yes, MP2 dividends are tax-free. This means that you get to keep all the earnings you make from your investment without having to pay any taxes on them.
Can I apply for MP2 online?
You can apply for an MP2 membership and make your contributions online via the Virtual Pag-IBIG website. If you haven’t created a Virtual Pag-IBIG account yet, I have a step-by-step guide for you.
How do I get my MP2 dividend?
Your MP2 dividend will be credited to your MP2 savings account at the end of each year. You can check your account balance and dividend earnings online or through the Pag-IBIG Fund mobile app.
Please note that this doesn’t mean that you will be able to withdraw your dividends right away. If you opted for the 5-year dividend payout mode during account creation, the dividends you earn would be automatically added to your principal. You can withdraw your dividends together with the principal amount after 5 years.
However, you can select a 1-year dividend payout mode if you wish to withdraw your earnings on a yearly basis.
Personal opinion? It’s best to go for the 5-year dividend payout mode, so it will be compounded and will earn you more money.
How much is the dividend rate for MP2 2022?
The dividend rate for MP2 in 2022 is 6%. This rate is higher than the regular Pag-IBIG savings program and is expected to outperform inflation, making Pag-IBIG MP2 a good investment option for those who want to earn
For additional information about Pag-IBIG MP2, I suggest visiting this article.