How to make the most of Pag-ibig MP2 earnings

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Pag-ibig MP2 or Modified Pag-ibig Savings Program 2 is one of the passive income in the market that’s open to almost anybody to invest. The way it earns is not hard to understand, and it is also relatively easy to start an account just by visiting the nearest Pag-ibig branch.

Also it has historically been beating savings account and time deposit. The one advantage is that the capital that you put in is guaranteed by the Philippine government.

If you haven’t already, you can read all about Pag-ibig MP2 savings program and then you can get back here.

First, is MP2 right for you?

Surprisingly, it may appeal most to conservative investors because of little risk of capital loss. It is considered relatively safe because the capital that you put up is government-backed, and it’s been posting tax-free dividends.

The earliest I can find is the MP2 past dividend from 2010.

MP2 dividend rate

YearMP2 dividend rate
20206.12%
20197.23%
20187.41%
20178.11%
20167.43%
20155.34%
20144.69%
20134.58%
20124.67%
20114.63%
20105.5%

However, there is a lock-in period of 5 years. While you can withdraw any time, you can get back the savings but the dividends that would be issued to your account may not be the full rate.

Nonetheless, it’s an alternative savings vehicle aside from those offered by banks and cooperatives.

Making the most out of MP2

Now that you see the potential earnings, you might wonder what are the ways to save up and whether there is one strategy that gives you the most out of Pag-ibig MP2 program?

This article explores three things.

  • Do you get bigger returns when saving monthly or annually?
  • Which has higher return on investment (ROI): investing one-time or regularly?
  • Would it make sense to get the dividends every year or at the end of lock-in period?

IMPORTANT: This article DOES NOT tell you how frequently you should save. It only looks at the effects of saving monthly, annually, or one-time as well as of withdrawing the dividend every year.

MP2: monthly versus annually

Does it make sense to save every month or just once at the start of the year? To answer this question, let’s look at the math.

The minimum amount to begin saving is ‎₱500 so let’s assume that you’re going to contribute either ‎₱500 monthly or ‎₱6,000 every year.

Next, use the average dividend rate for the past 5 years. This is appropriate to be used and not the recent one as the forecast is going to be 5 years into the future, which also corresponds to MP2’s lock-in period.

Besides, it also captures the highs and lows of the rate through the years. Again, past rate does not guarantee future returns.

Here’s how the money is forecast to grow in 5 years.

YEARSAVINGMONTHLYANNUALLY
16,0006,2196,395
212,00012,86013,212
318,00019,95220,478
424,00027,52528,223
530,00035,61436,479

As you can see, saving annually gives you better gains than saving monthly in the long run. Even when in both situations, your total saving is technically the same (‎₱30,000).

By saying that, this does not mean that you should set aside ‎₱500 in a piggy bank each month and make a contribution after it reaches ‎₱6,000.

Why? Because your piggy bank makes your money sit idle, and it wouldn’t earn anything extra that it could’ve earned had it been invested elsewhere while it’s accumulating.

If it is within your means to save ‎₱500 every month, then the better strategy is to put it in MP2 rather than in a piggy bank.

All in all, annual contribution is ideal for people who can expect windfall each year like 13th month bonus, incentives, or Christmas gifts from godparents. Instead of spending your extra cash, you can contribute them to your MP2.

MP2: Investing regularly versus investing one-time

The second question is about choosing between periodic and one-time investments in Pag-ibig MP2. Which strategy gives you the most bang for your buck?

Again to answer this question, math is going to be used. For regular investing, let’s say that you’re contributing ‎₱500 monthly.

Since the lock-in period is 5 years, the one-time contribution is set at ‎₱30,000. That’s ‎₱500 x 12 months x 5 years. Just like the previous example, the same average dividend rate is used to make projection for the next five years.

YEAR500/MOTOTALONE-TIMETOTAL
16,0006,21930,00031,977
212,00012,860 34,084
318,00019,952 36,330
424,00027,525 38,725
530,00035,614 41,277

From the table, it is clear.

Investing one-time lump sum amount gives superior return on investment (ROI) than regular monthly contribution. At the end of 5 years there’s a potential to earn ‎₱41,276.57 versus ‎₱35,613.64 from the monthly saving.

How about annual contribution versus one-time? The story is the same. The one-time strategy has the edge.

From the previous example, the total amount for annual strategy at the end of the lock-in period is ‎₱36,478.58, which is still lower than what you could expect from the one-time strategy.

What does this all mean?

If you have the money that you can afford to set aside for the next half a decade, then putting it into MP2 one-time makes sense.

So if you’ve been given an inheritance, made a huge commission or got a windfall, this strategy can be a way to grow your money.

However if you can only do regular saving, then that’s fine too. Don’t feel bad.

It’s also worth repeating that you’re better off putting in a small amount monthly into MP2 rather than saving in a piggy-bank and only invest when it reaches ‎₱30,000. You’re going to miss the opportunity for passive income.

MP2: Annual or compounded dividend?

As you may already know, after reading the guide on Pag-ibig MP2, you are given two choices on how to receive your dividends.

You can either get it straight to your bank account every year or wait until the end of the lock-in period of 5 years.

Are you going to have bigger net returns when you let the dividend compound your savings or when you get the dividend at the end of each year?

To answer whether waiting until the end of the lock-in period will give you better return on your money, let us imagine that you open two MP2 accounts with the same one-time savings of ₱30,000 at the same time.

With one (1st MP2) account you let the dividend stay and then withdraw everything after 5 years. With the other account (2nd MP2), you get the dividend to a bank account at the end of each year straight.

See the table below for the comparison.

Year1st MP2Compound2nd MP2Annual dividendTotal
1 30,000 31,977 30,000 1,977 31,977
2 34,084 1,977 33,954
3 36,330 1,977 35,931
4 38,725 1,977 37,908
5 41,277 1,977 39,885
Total41,2779,88539,885

As you can see, the 1st MP2 is higher. Your total net-home take is ₱41,277. That’s ₱11,277 of total dividends for 5 years. For 2nd MP2, you’d end up getting ₱39,885 with a total of ₱9,885 worth of dividends spread yearly until the lock-in period lapses.

The verdict? Patience indeed is a virtue and it’s a virtue that gets rewarded in the end. If you can, wait until the lock-in period lapses.

However, if you think that you would benefit greatly that you’re receiving the dividend each year, such as paying for your child’s tuition or to add to your yearly budget, then go right ahead.

Summary

Now, I’m not saying all of us should be doing lump sum investment. (In fact, I’m not saying that you should go with MP2 right this minute.

Instead, check your financial circumstances, come up with a financial goal, seek more information about passive income like mutual funds, exchange traded fund, UITF, PERA or VUL, and then compare.)

It is worth repeating that the goal of this article is to review these strategies by using math to forecast future MP2’s savings growth. Again, past performance does not guarantee future dividends. Actual dividend would vary.

What I can do is to show how these strategies would pan out in the long run. So don’t feel bad if you don’t earn and save much. Not all of us have a huge capital to invest one-time big-time or even yearly.

Setting aside a little amount regularly to Pag-ibig MP2 or other investment options if you have a five-year financial goal could still be better than letting your money in a piggy bank.

At the end of the day, how you save and invest your money and where you put it to give you the most return is a decision only you can make. What I can do is to help show you the consequences of such decision.

To wrap up this article, here are the strategies to make the most out of your MP2 savings account.

  • Piggy bank versus MP2? MP2 wins. If you have money you can forget in the next five years, don’t let it be set aside in a piggy bank and then only contribute in Pag-ibig once it reached a certain amount. You’re missing the chance to earn a little while you’re building up your savings.
  • Save a little. When money is tight, there’s no shame to contribute at least the minimum amount each month. Regular saving is better than none at all.
  • Windfall. If you have an annual windfall like bonuses or Christmas gifts, putting it one-time is a better strategy than spreading it throughout the year .
  • One-time saving. MP2 is also great for one-time saving, which can give higher return than spreading it throughout 5 years.
  • Annual dividend pay-out versus compounded? Annual dividend pay-out is suitable to people who’d like to get their gains each year, while letting your gains compound in five years give you higher return and such strategy is suitable for people who can afford to wait for five years.
  • You do you. At the end of the day, only you know what’s the best strategy for you. So you do you.
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142 thoughts on “How to make the most of Pag-ibig MP2 earnings”

        1. Hi Emmanuel,

          Yes, tama po kayo. Pag-ibig MP2 allows you to receive dividend in two ways: after the lock-in period or withdraw it every year straight to a bank account. Compounding happens when you let your dividends stay within the lock-in period, which would give you a higher net take-home balance than when you receive the dividends every year. I hope this answers your question. 🙂

      1. Hello sir tatanong ko lang po, paano kung mas maaga kong natapos yung mp2 ko, wala pa pong 5 yrs tapos na po, pwede na po ba akong mag stop maghulog nun or kailangan talagang 5 yrs yung span ng hulog?

        1. Hi Ronamie, I think MP2 is a voluntary savings program so it is really up to you how much you’d want to save.

      2. Sir, ask ko lang po wat if 1time 50,000 ang ihulog? okay lang po? then wait for maturity nlng, .. or the bigger amount, the better

        1. Hi Janine, the only person who can answer whether that’s the right amount to save up is you. Can you put up that much (or bigger amount) and forget about it the next 5 years?

    1. Paano po icompute ung irregular n hulog.
      Like for example… 3 times lng nghulog for a year.
      May P2000
      September P2000
      December P2000
      Tapus 7.23 % ung rate ng year na yun.
      How much is the dividend?

      1. Hi, Kristine. You may do the computation based on how many months your capital has been invested. So May (2,000 x 7.23% x 6/12 = 72.30), September (2,000 x 7.23% x 3/12 = 36.15), and December (2000 x 7.23% x 1/12 = 12.05). The 6/12, 3/12 and 1/12 correspond to the number of months divided by 12 months in a year. So total dividend would be 72.30 + 36.15 + 12.05 = 120.50. Please take this result as estimate because we don’t know the official dividend that your savings is entitled to get.

  1. Hello po, good afternoon 🙂
    Ask ko lang po kung magkano ang guaranteed interest return? Wala po bang admin charge?
    Thank you.

    1. Hi Ailyn,

      The capital (the savings that you contributed) is guaranteed, and not the dividend. The dividend varies and depends on the income of Pag-ibig, which makes an announcement in each first quarter of the year. As for the admin charges, there aren’t any mentioned by Pag-ibig.

      1. Good day Ma’am/Sir, I just want to ask if how much dividend would I possibly earn if I will invest 100k one time? Thank you.

      1. Hello po!..pwede po kaya yun kung every month iba iba pong amount yung econtribute ko..sample po minsan 500 kada month yung ibang month namn po 1000, ok lang po ba kaya yun?…thank you po!

        1. Hi, Fatima. MP2 is a voluntary savings, so I would think that any amount for as long as it equal or more than the required amount. Pls check with the Pag-ibig rep for more details.

  2. Hi,

    Thanks for providing a very informative yet simple explanation how MP2 works.

    Is there any other investment you can suggest with passive income?

  3. Good morning. Sir kung one time payment ang gagawin, what month magandang ideposit? I mean, start ng year or end ng year?

    1. Hi sir Mark, Pag-ibig has not released how their computation for dividend works, but based on their available information it seems like full dividend is paid if capital is saved for the entire year, and then proportional fraction of the dividend based on the number of months. So to answer your question, it doesn’t matter po. In investing kasi po esp kung interest-based/dividend-based the earlier you commit capital the higher the interest.

      1. Hi sir
        Askq lang po I am A OFW and I want to invest ano pwede ko po gawin? Pwede po ba online?
        Thank you

        1. Hi Sheena, you can actually go to Pag-ibig website and fill out the online form. You may request any of your family or relatives in the Philippines to make the payments on your behalf.

  4. pa tanong po. walapo option sa form na one time big time na ang savings ko. bali 100,000 na for 5 years. at hindi na ako mag huhulog monthly…

    1. Hi, Sir Ed. You can save however you like po, like 100k and let it compound for 5 years. What this article shows is the growth of money over time base on monthly, yearly, or lump sum strategies. Hope this clarifies.

    1. Hi, Sir Ed. Just drop by any Pag-ibig branch po and approach any of their officers. Tell them you’d like to open an MP2 account.

  5. Its better to get interest on a one time investment right? do you think its better to open an account annually so I can get the a percentage for a one time big time investment and withdrawing after 5 years one at a time at maturity?

    1. Hi Alvin, according to the estimates in the article investing one-time and let it compound for 5 years offers the yield higher than doing it monthly or yearly, but that shouldn’t discourage anyone from saving monthly or yearly. To answer your second question, Pag-ibig allows you to open multiple MP2 accounts so you can open a new MP2 account every year. Check the article on MP2 strategies.

  6. Hello Sir, I would like to ask what dividend rate did you use for ANNUAL VS DIVIDEND. I used 6.59% which is average of 2014-2018 but I can’t seem to manually compute for the values you posted e.g. 6,218.55. I hope you could provide the formula. thanks

    Year 500/mo Compounded Annually
    1 6,000.00 6,218.55 6,218.55
    2 12,000.00 12,859.50 12,832.49
    3 18,000.00 19,951.56 19,841.84
    4 24,000.00 27,525.37 27,246.59
    5 30,000.00 35,613.64 35,046.74

    1. Hi Jas, Pag-ibig has not released their computation so what you see here are projections using annuities and compound interest formulae. Thanks.

  7. Hi! Can i continue my MP2 account even when i stopped paying it eight months ago? That MP2 is supposed to mature in 2023. Or do i have to apply for a new MP2 account?

    1. Hi Irene, you can drop by Pag-ibig branch and inquire although I think you should be able to make additional contribution. Thanks. 🙂

  8. Sir, what if mag hulog ako sa MP2 every 12th of the month, may makukuha na ba ako na dividend or the following year pa? Kailangan naka 1 year yung hulog bago mag karoon ng dividend?

    1. Hi, Alex. Pag-ibig generally announces the dividend first quarter of the following year. So it’s expected that the 2019 dividend rate is going to be declared by March or April of this year.

  9. Question. I have default Pag ibig Multi Purpose Loan, any idea kung magiging problem yun sa pag gamit ko ng MP2? Plan to save using Mp2 kasi

    1. Hi, Andrea. I haven’t heard of any requirement about existing Pag-ibig loan in connection with participating in MP2 savings program. To be sure, check your nearest Pag-ibig branch. Thanks.

  10. My Mp2 account will mature this April 2020. What if maglagay po ako ng amount dun for example in Feb or in March? Paano po kaya ang dividend calculation nun? 7.41% in 2019 kaya ang gagamitin sa buong amount? Wala po ako makitang article about maturity in the middle of the year e. Thanks po.

    1. Hi, Jennifer. Thanks for the good question. First question: The 7.41% is the 2018 dividend. They haven’t declared the rate for 2019, which is expected to be announced by the end of the first quarter (March or April). Second question: just like you, I haven’t also found any reference about dividends on amounts that are invested in the middle of the year. Please consider checking with Pag-ibig rep. Thanks.

    2. Hi Jennifer, may I ask how was your experience withdrawing it after maturity (if you did withdraw)? If ever, what is the process and how long does it take to release? Appreciate any info you can share. TIA

  11. Hi, what you think is the best option if im planning to invest 200k? Should i put it all in one mp2 account or ill divide it in two and apply two mp2 account 100k each for best yield of earnings? Thank you in advance

    1. Hi, Anthony. Although that is one way to go about diversifying your funds, please check if that strategy is what’s best to reach the financial goals that are tied up to your investment. Cheers!

  12. If i have 50k sir for initial and 10k monthly sir ano po suggestion ninyo. Index fund ng First Metro or MP2 po? Goal ko sana for passive income in the future.
    Salamat po sa reply ninyo?

    1. Hi, Car. The only person who can answer your question is you. What is your risk profile? What are your financial goals? What investment options are you very familiar with? First Metro is a stock brokerage company where you can buy and sell stocks, which are aggressive and there is risk of capital loss with potential for growth. MP2 on the other hand is a conservative option with higher returns than savings account and time deposit. Weigh these factors carefully and come up with a decision. All the best.

  13. Hello Good day po!Ask q lng po if let’s say mg-invest aq sa MP2 na one time payment,pano po kinokompute ang dividend rate nun yearly po ba ngbabago ang interest rate nun?Thanks in advance for your reply☺️

    1. Hi, Gloria. The dividend rates vary yearly, so your one-time investment earns according to the dividends declared for each of the five years.

  14. Hi po.. ask ko lang po kung naghuhulog na po ako sa mp2 need ko rin po ba ituloy ang pag ibig mp1 ko.. balak ko sna lahat ilagay na lng sa mp2 account. Thanks po

    1. Hi, April. You’d have to have both membership active as requirement for MP2 account opening. The only exception I know is granted for retirees where they’re asked to have a minimum number of months’ worth of contributions. I am not sure though if contribution to regular membership is required for MP2 investing. Please check with a rep from Pag-ibig branch near you to be sure. Thanks.

  15. Hi! I would like to ask when does PAGIBIG post the dividends you earned for the previous year for MP2. It didn’t reflect in the printout I asked yesterday. Thanks

  16. Hello po.. ask ko lang kung paano ako makakasiguro na ung binabayad ko sa mp2 account ko ay pumapasok talaga sa account ko… i mean wala nba ibang option na malaman ko ung mp2 contributions ko bukod sa pagpunta sa main office kasi nasa japan po ako ngaun… dna ako makakapunta pa sa mismong pag ibig branch 🙂

    1. Hi, Erika. As of the moment, there is no way to monitor your savings online. Please make sure that you keep all the receipts every time that you make a contribution.

    2. Meron na po ngayong kung papaano nyo makikita ang hulog nyo sa Pag-Ibig Mp2 thru Virtual Pag-ibig po kailangan nyo lang po magregister makikita nyo na po doon ang details nyo like MP1, MP2, Housing Loans

  17. question po: say 5th years na po ng savings ko, ma wi-withdraw ko pa yung full amount ng capital at interest If i decide to withdraw every penny? or may percentage na kukuni si pag-ibig? Salamat po

  18. Good afternoon. How much is the minimum amount for a one-time payment contribution? Is it 30K or 100K?

  19. Hi, meron ako acct sa mp1 nung ngwowork pa ako sa pinas. Kaso stop ko ung pghuhulog nung ngwork nko abroad. Mkakaaply kaya ako sa mp2?
    can i ask someone to submiy my forms and requirements to any branch? Thanks po

    1. Hi, Ann. You can now open an account online. Check the Pag-ibig website. For the first contribution, you may ask your relatives to do so at any branches. You may pay online afterwards. More power!

  20. Good morning. I invested 1m july 22, 2019 n i wud like to withdraw the whole investment. What should i do?. Your tel no. S so busy this morning.

    1. Hi, Veins. The dividend rates are announced every year. Pagibig has not released their calculation, but it can be estimated using compound interest.

  21. Ang ganda po ng explanation niyo para sa MP2. Di ko po alam na pwede pala ung big time payment since ang ginagawa ko currently is monthly thru salary deduction. Kaya if ever na may extra, may option pa pala ako na magbukas ng isa pang account tas big time payment. Thank you for sharing your knowledge!

  22. Hi sir, i just asked our hr to open an mp2 account for me on a salary deduction setting. I still have questions in mind though:
    1. Can i still add some money personally whenever I have extra? If yes, where can i remit the money?
    2. (Related to the 1st question) what if I chose Annual Dividend but then I add the dividend to my capital each time I receive it. Then i could possibly get the same amount as compund interest in 5 years. But at the same time I’ll have the flexibility to withdraw my money anytime knowing that the interest for the previous years already add up to my capital in full. Is this allowed?

    1. Hi, Namme.
      1. Check Pag-ibig for payment options, try their online payment portal on their website.
      2. When you open the account at the branch, make sure that you indicate that you’d like to receive your dividend annually. They’ll ask for a settlement account (a bank account where the dividend will be deposited). And yes, by opting for yearly pay-out but choosing to either save them to the account or spend it can be a flexible option.

    1. Hi, Denn. The best investment is the one that fits two things: your present financial status and your future goals. There is no one answer for everyone, so it’s best to look into what you currently have and what you’d like to be in the future.

  23. Hello po, tanong ko lang. OFW ang mama ko paano ko po sya pagawaan ng MP2 savings? pwede bang ako ang mag process? and wala pa kasi syang pag ibig fund talaga. ano ba dapat gawin?

    1. Hi, Chain. She can go online and open an MP2 account. Just check the Pag-ibig website and follow the instructions. Once she has an MP2 account, her family or relatives can pay the first payment at any of the Pag-ibig branches nationwide.

  24. If I may ask, I have an MP2 account but my mistake is that I divided my contribution into 500 per month in 2019. My question is, would it be possible that on my 2020 contribution I would pay a lump sum amount or should it be necessary to regularly pay 500 per month until my MP2 account mature?

    1. Hi, Meachel. First of all, please don’t feel bad if you’ve been saving monthly rather than lump sum. The goal of the article is to show which strategy earns the most, but it is no way imposing. There is no right or wrong strategy. The choice boils down to you, which one is most suitable to you that can help you achieve your financial goal. To answer your question, you can save monthly or lump sum because MP2 is a voluntary program. No need to wait for the account to mature. Cheers.

  25. I just noticed that when it reached the highest dividends(for which I hope not) in the Year 2017, the succeeding years are at decreasing dividends. Do we expect a lower dividend for the year 2020?

  26. Hello, just asking lang po yung MP2 ko po kasi mag 5 years na this coming November 2020, ang tanong ko po kailangan ko na ba syang i stop kasi hindi ko naman sya ma renew ofw po ako at hindi ako makakauwi this year, or is there any other way po ba para i renew? and how po? thank you

    1. Hi, Bernadette. According to available sources, your money is going to earn the regular dividend (no longer the higher dividend MP2 gives) after five years. And if you still have not closed the account, your savings is not going to earn anything after two years. The only way to close the account to either get your money back or open a new account (as a way to renew) is to visit the branch.

      1. Hi ask lang poh if one time remitance poh sa 5yrs.sa mp2 tapos wala sa total nyo poh ang money na edeposit.. halimbawa 100k magkano poh ang devident nun sa 5yrs..sa 8.11% one time remitance kc poh wala ung 8.11% na devident. Pano poh un?? Tnx sa sagot..

        1. Hi, Pablo. The tables that you see here are estimates and the rate being used is the average for the past 5 years. The dividend is not guaranteed, and actual values vary every year. You may use this Google sheet to estimate an initial one-time P100k.

  27. i enrolled MP2 PAG IBIG YR 2018 SEPT -When is the maturity?is it 2022 september?kindly correct me if im wrong .many thanks!

  28. Hi! Sample scenario, I already opened my MP2 account and I make monthly contributions thru salary deductions, If I have an extra cash that I decided to just deposit on my MP2 account, do I just deposit through pag-ibig branches and payments centers? Is that possible to just deposit on my own even if I contribute before through my salary deductions? Thanks!

    1. Hi, Salty. Yes, you can add more to your MP2 and you can deposit through any of their payment methods.

  29. Good dap po. Pano po malalaman ang maturity ns savings MP2. I mean kung kelan pwede na I withdraw. mag 5 years na po kasi ako kaso di ko maalala yung buwan kung kelan ako una nagbayad.

    1. Hi Kevin. See if you can check the detail on the online account. Depending where you are and with the pandemic, see if you are allowed to drop by any branch and please consider your safety to get more info about your account.

  30. Hello PO,good day,thanks po sa mga answers to different queries,learned a lot.Ask ko lng PO if merong online pagibig transactions that will entertain you esp today my pandemic na Kung saan mgkpginvest and transact payment online to start mp2 investment since I am pagibig member already.thnks so much

  31. Parang ang analysis is titigil na lahat ng bangkong mag time deposit kung alam ng lahat ng Pinoy na may ganito pala sa Pinas na investment. hehe

    1. Hi. MP2 is one of the many options to earn passive income. No one option is applicable to everyone. Time deposit is attractive to people who want maturity shorter than 5 years.

  32. Hi, first of all thanks kase ang linaw ng lahat.
    But I have a question that was not mentioned, mmm Kapag ba nag one time invest ako then narealize ko i wanted to add more the following year, how will that work? Thanks!

  33. hi po ask lang po. pwede po bang pa iba iba ang amount every month and ihulog, for ex. this month 10k and then next month 15k pwede po ba yung ganun.

    tnks po.

  34. Good day, Sir. I’ve opened two MP2 accounts just today. I want to clarify lang po if my 5th year of paying will be counted on December 2024 (not sure po if the standard count ba is yung end ng year) or since I started this November, my 5 years of paying will be until November 2025?

  35. Sir,question lang po ,,,, example January lang po ako mag hulog ng MP2 ko ng 20k every year, sa loob po ng 5years,.
    ,then pagka 6 to 10 yers nag stop na po ako mag hulog tapos yung perang na invest ko d ko na muna na withdraw lahat patuloy parin po ba yung dividendo ko po,, kahit d na ako nag patuloy mag hulog?

    1. Hi Joan. It is recommended that you withdraw the money after 5 years. If you don’t, it’s going to earn a lower dividend (which is the same rate given to the mandatory savings) for two years. At the end of two years, the money won’t be earning anything. A better strategy is what is called MP2 rollover. Withdraw your money after five years and then deposit it to a new MP2 account.

  36. Good day sir! This article is so informative. Simple yet super clear 😊

    Question: I opened my MP2 account last Summer of 2018 but i haven’t deposited any amount. The only option that time is to pay in their branch only (but their branch near to us is 2-3 hrs travel time)
    Is it still possible po to deposit in my MP2 account after 2 yrs of not depositing any amount?
    Thanks!

    1. If you’re talking about the dividend announced this year, check the 2019 rate. For 2020, it’d be announced next year.

      1. Good day

        If the dividend for year 2020 is 6.12% and let’s say I invest P500,000 last 2019.
        How much dividend can I get?

  37. Hi Pesolab, I’ve read dividends could be credited on your bank accounts yearly. Do I have to open an account in Landbank for that? Or will that automatically be processed upon submission of requirements at the pagibig branch? Thank you.

    1. Hi. You can choose the option for yearly dividend, and you’d have to elect a bank account where the pay-out will be directed to.

  38. Hi sir question lang what happens if annually instead of after the 5 yrs lock in yung interest? For example annually po tapos di ko nakuha yung interest mag rollover lang po ba siya like sa 5 yrs lock in? Sorry di ko po ma express correctly yung question

    1. Hi Ysabel. If annual dividend (instead of getting it after five years) is selected, then the dividend is deposited every year straight to your settlement account / bank account that is indicated upon account opening.

  39. Hello
    pano kung 500 lang nasave ko for 1 year then now lang ulit ako mag start ng 500 monthly for the whole year ok pa po ba un

  40. Hi po! I’m planning to get my own MP2 savings this April pero tanong ko lang po, if ang pipiliin ko is one-time investment (compound dividend), sa 2nd year ng savings ko, after maghulog nung same amount nung unang taon, pwede pa rin ba ako maghulog ng additional kung may extra money ako?

    Example amount is 50k each year pero sa 2nd year gusto ko pa magdagdag ng smaller amount, pwede po ba un? Thank you!

    1. Hi Natasha. You can save however you like, for as long as it is equal or more than the minimum. This article only examines different saving strategies and their effects on your return, and it definitely does NOT restrict people if they’re going to save up more.

  41. Hi, how did you find out the performance of 2020 (6.21%)? I can’t find it in the pagibig site. Thanks!

    1. Hi Krizfy, it’s 6.12%. Pag-ibig executives presented their annual report, and you can also check news articles written about it. Here’s one.

  42. hi…i’ve put in one time in mp2 back in May 2019. Would it be possible to add more to it anytime via online or do i have to apply again for another account personally?
    thanks for clarification.

  43. I think another option since you can open multiple M2 accounts is you can opt for a one time contribution for the next 5-7 years since you can leave your investment for an additional 2 years after the first 5 years to maximize your returns. So let’s say you open an M2 account for the minimum of 30k one time. the next year instead of topping up your existing account, open another for 30k, do this for the next 5-7 years. Once your first investment matures after 5 or 7 years you can collect your dividend and create another M2 account with your investment. I guess it can be a yearly passive income since your multiple m2 accounts will mature year after year after year. Hehe.. Is that feasible? I didn’t calculate the earnings, but of course that would also depend on the market. 🙂

    1. Hi Lloyd. Wow, you really put thought into this. We’ve written something similar, you are describing tiered and rollover MP2 strategies. Just to make it clear, the two years after 5-year lock-in period will be less beneficial because the funds would earn the lower dividend rate of the regular Pagibig account. So the strategy you described is best when the account is closed upon its 5-year maturity.

  44. I hope you can answer this scenario. I have already invested a one-time lump sum to MP2 and chose annual dividend payout. Reason being that if I need the dividend money, I’ll withraw the dividend every year or if I don’t need it, I’ll just deposit it back. Later I regret I did not choose the 5-yr dividend payout coz’ I did not realize that the payout of the dividend happens 3-4 months of every year and I’m afraid it will loose earning interest of that 3-4 months. Just recently, a pagibig staff told me if you decide not to claim/withraw the annual dividend, the dividend will continue to earn interest /roll as if I chose the 5 yr one time. I just want to verify if this is true. So, in that case, will it earn max possible interest like the 5yr. option coz’ I decide not to withraw those annual dividends? losing interest for the 3-4 months (jan. 1st to say… apr.15) delay every year is quite big. In simple terms, does the dividend really just get compounded?

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