STATE-RUN Pag-Ibig Fund expects to generate P10 billion in voluntary savings from members by yearend under its Modified Pag-Ibig 2 (MP2) Savings Program.
This two-digit billion figure was set following a wider and growing appreciation of members of the benefits of saving with Pag-Ibig Fund.
Fermin Sta. Teresa Jr., Pag-Ibg Fund Senior Vice President for Home Lending Operations, said MP2 Savings Program has been growing at a phenomenal pace.
The MP2 Savings is Pag-Ibig Fund’s voluntary savings platform designed for members to save more and earn high dividends in addition to their Pag-Ibig Fund Regular Savings.
“When we intensify the program two years back, we were able to generate P1billion in voluntary savings. Last year, we breached the P4 billion mark. Now we are looking at ending the year with P10 billion,” he said adding this translates to the growing popularity of the program as it is now deemed by many as better option for savings.
MP2 Savings reached P4.66 billion in January to June 2019, growing 198 percent from the P1.57 billion collected in the same period last year.
He added more members are attracted to join the program as the platform offers superior dividend rate with an average of 7.65% than bank’s time deposit’s interest rates at an average of 2%. The government-guaranteed savings program also applies a no withholding tax policy.
“In 2017, we had a dividend rate of 8.11%. Last year was 7.9%, this year we assure the public that the dividend rate will not be lower than 6%,” Teresa said.
The MP2 Savings program has a 5-year maturity period and a minimum savings requirement of only P500. The Fund does not limit members as to the maximum amount they want to save for as long as those who plan to deposit over P500,000, it should be transacted through personal or manager’s check. In 2018, the Fund opened the program to retirees and pensioners who are former Pag-Ibig Fund members.
“You can opt to deposit regularly a minimum amount of P500 every month or you can do a one-time savings of a higher amount,” he explained.
Pag-Ibig Fund invests at least 70% of its investible funds in housing finance and in government securities and corporate bonds, as required by its Charter.
Who are qualified for MP2 Savings?
All active members of Pag-Ibig – including Overseas Filipino Workers - can apply for the MP2 program. Former Fund members with source of monthly income like pensioners and retirees and have at least 24 monthly savings while a member is also qualified. This program is also open to only individual persons, not companies. But one can open and maintain multiple Savings accounts.
How to enrol and pay
One can do online sign up through the MP2 Enrolment System or download the enrolment form. An MP2 account number will be given after the online registration. Members can print and bring the registration form along with a valid Identification Card and a passbook or ATM card of one’s nominated bank account to any Pag-Ibig branch to start remitting.
For OFWs, one can register online and ask relatives to pay on their behalf or pay through the Overseas Remittance Partners Abroad using the MP2 account number.
In remitting, one can choose to ask their employers for salary deduction upon agreement or arrangement or directly deposit it at any Pag-Ibig Fund branch. Deposits at any Pag-Ibig Fund-accredited collection partners are also allowed.
MP2 Savings members have two choices of payout schemes: annual dividend pay-out or fixed five-year maturity period payout.
Once one MP2 Savings reach the 5-year maturity period, the member may re-apply for a new MP2 Savings Account.