Financial Wanders | Investing on MP2, How to Apply, Who are Qualified, Why Invest on MP2

For ordinary Filipinos like me, investment equates to being rich. That in order to invest, you have to have lots of money to spare; you have to have big savings in the bank. Now that I read a lot of articles about investment, I realized it is not. You don't need big amount of money to start investing. There are investments that start for as low as 50 pesos. Of course, these type of investments won't make us rich in the short term. You won't get as much return from them but what I want to establish here is the habit of saving and investing. Had I known this early on, had this habit of saving and investing been ingrained on me during my formative years, I would have started saving early on. I've been working since I was 11 years old but I only started saving (and by saving, I mean, religiously allotting a portion of my salary to my savings account) last 2020. Kinda late for some maybe, but there's no such thing as 'too late' for me, for something that I know will benefit me and my family. However, saving is just an initial step. The goal really, is to let your savings grow. And it won't grow if you just let it sit in the bank as deposit interest rates nowadays is too low, as low 0.25% annually.

Anyway, there are several investment vehicles out there in the market. There is mutual funds and UITF investment; there is VUL (though  won't suggest this one for investment purposes); there is stock trading and investing and there is MP2, the modified Pag-ibig II savings, among others. In this post, I'll be focusing on MP2.

What is MP2?

MP2 stands for modified Pag-ibig II savings. It is a voluntary savings facility offered by HDMF (Home Development Mutual Fund), more commonly known as Pag-ibig, to its members.

Who are qualified to apply/invest on MP2?

  • Active members - those who are currently working and making their mandatory monthly contributions via salary deduction
  • Retirees - those who already retired but is a previous member of Pag-ibig; also includes those who stopped working but made at least 24 monthly contributions
  • Pensioners - those previous employees who are now getting their pensions

What are the requirements and how to apply for MP2?

MP2 application is quite easy to accomplish. You can go to the nearest Pag-ibig branch in your area, accomplish the application form and submit it for processing. Once everything’s okay, you will get your account number which you can then use to pay for your MP2 premiums.

Submitting an application for MP2 doesn’t always have to be traditional, as stated above. If you’re comfortable working with your computer, you can also apply for MP2 online. Instead of filling up printed forms, you just have to type/input the required information via online forms. A note for online application, have your MID and other personal information ready to avoid getting timed out and redo everything.

Where to pay for the contribution/premium?

Payments for your premium can be done online and offline, similar to online and offline application process. For convenience, you may use your bank’s online payment facility. You may also use e-wallets like Gcash. A note though, there’s a 5-peso service charge when you use Gcash. But considering today’s jeepney fare, paying via GCash is still cheaper and saves more time. Convenient too, since you can do it anywhere you are, as long as you have internet connection.

But if you prefer traditional way of paying obligations like MP2 premiums, you may still do so. Just go to your preferred bank and pay from there. You may also use payment centers like SM payment center to pay for your premiums.

Why invest on MP2?

There are three main reasons why you should invest on MP2. First, it’s easy and convenient. You can apply for MP2 account online and pay your premiums in the comfort of your own homes, via online facilities and e-wallets.

Second, it’s affordable and flexible. It’s affordable because you can invest as low as 500 pesos monthly. And it’s flexible because you can pay any amount you like even if you initially declared a 500 monthly premium. You may actually skip a month or two if you’re low on money, as long as you make sure the total premium on or before the end of maturity totals to 30,000 pesos. Just take note that if you opt to pay online, some payment facilities charge convenience fee (GCash charged 5 pesos every transaction, regardless of the amount).

Lastly, it offers higher returns (dividends) compared with other investment facilities. And you can get even more via compounding interests if you opt to get the dividends on maturity date rather than getting it annually. Last year’s dividend is 6 percent but it went as high as 8.11 percent in 2017. The dividend rate is not guaranteed but the government guarantees the principal, meaning you’ll get your money whatever happens (unless it’s the government that failed 🙄). One more thing, dividend is tax free; unlike in savings wherein your interest will be deducted 20 percent for the tax. Pretty good reasons to invest right? So what are you waiting for, start your 2023 right; visit I already did! (I’m an MP2 subscriber since 2021) 😊

PS: I made a video out of the short presentation I made from our soft skills training last year, you may want to check it out also. It's a shorter version of this blog post. Watch it here: 


It's not how much money you make, but how much you keep,
how hard it works for you, and how many generations you keep it for. ~Robert Kiyosaki

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