If you’re looking for a safe and reliable investment in the Philippines, Retail Treasury Bonds (RTB) and Pag-IBIG MP2 are two of the most popular choices. Both are government-backed, low-risk, and accessible to Filipinos worldwide — but which one fits your financial goals better?
This guide compares their features, returns, and pros/cons so you can make the right choice.
1. Overview
Retail Treasury Bonds (RTB)
RTBs are fixed-income investments issued by the Philippine government. You earn a fixed interest rate for a set number of years, making them one of the safest investments available.
Learn more: RTB 31 Retail Treasury Bonds Guide
Pag-IBIG MP2
The Pag-IBIG MP2 Savings Program is a voluntary savings scheme where you earn annual dividends from Pag-IBIG Fund’s earnings. Historically, MP2 offers higher returns than most bank savings or time deposits.
Learn more: Pag-IBIG MP2 Complete Guide
2. Key Similarities
- Government-backed – Both are virtually risk-free.
- Low entry requirement – You can start with a small amount.
- Accessible to Filipinos worldwide – Available to OFWs and locals.
3. Key Differences
| Feature | RTB | MP2 |
|---|---|---|
| Risk | Very low (fixed interest) | Very low (based on Pag-IBIG earnings) |
| Return Type | Fixed interest rate (locked at issuance) | Variable dividend rate (historically high) |
| Liquidity | Tradable before maturity, but may have market risk | Locked for 5 years unless early withdrawal |
| Payout Frequency | Quarterly interest payments | Annual dividend credit |
| Minimum Investment | ₱5,000 | ₱500 |
| Term | Usually 3–5 years | Fixed at 5 years |
| Where to Buy | Banks & online platforms during offer period — see How to Buy RTB via GCash | Anytime via Pag-IBIG, GCash, BPI, Maya, GoTyme, GrabPay |
| Tax | 20% final tax on interest | Dividends are tax-free |
4. Pros & Cons
RTB
✅ Pros
- Guaranteed fixed returns
- Quarterly income stream
- Can be sold before maturity
⚠️ Cons
- Only available during offer period
- Subject to 20% tax on interest
MP2
✅ Pros
- Higher historical returns (6%–8% average)
- Tax-free dividends
- Start anytime with small capital
⚠️ Cons
- Dividends not guaranteed (though historically stable)
- Locked for 5 years
5. Dividend & Interest Rate History
- RTB – Rates vary depending on the issuance; recent RTBs have offered around 5–6% before tax.
Try this: RTB Calculator Philippines - MP2 – Dividend rates have averaged around 7% in recent years.
See the full list here: Pag-IBIG MP2 Dividend History
6. Which Should You Choose?
- Choose RTB if you want predictable quarterly income and guaranteed fixed returns.
- Choose MP2 if you want potentially higher tax-free returns and can keep your money untouched for 5 years.
Tip: You don’t have to choose just one. Many investors put money in both — RTB for stable cash flow, MP2 for higher growth.