Financial Wanders | My Personal MP2 Account Performance, How to Redeem MP2

Performance of my Personal MP2 Account 

Time flies really fast! Five years passed by so fast, my MP2 matured already and now I'm redeeming it. How did the account perform overall? Is it better than my other savings and investments?

Here's the thing -- MP2 dividend rate for the past 5 years, on average is 6.92%. It's quite decent, considering MP2 investment is relatively low risk. But if you're like me who contributes premium payment irregularly, that is, only adding money whenever I have extra; then you will not be able to maximize the dividend rate, again, just like me. On average, I only received 4.2% return on investment annually. Am I disappointed? Actually no, I am happy, very happy with the return. With MP2, I was able to save some money. And I was not tempted to withdraw any portion of it. 

However, comparing it with other investments that I made on the same time frame, MP2 is lagging. But don't get me wrong. I'll still open a new MP2 account and reinvest a portion of the money I saved from my first MP2. It’s safe and no temptation to withdraw before maturity, unlike my other investments which I can withdraw anytime.

For those who do not have MP2 account yet, create an account now. And if you can do one time big time investment, do it. This way, you'll maximize the dividends you'll get. Of course this is not to say that you can't add investments in the course of five years. If you happen to get hold of extra money, by all means, add on it.

How to Redeem MP2 (after maturity)

As mentioned above, my MP2 account matured this month. And I already filed redemption actually. To make sure I'll not be wasting time whether redemption is done online or offline, I called Pag-ibig hotline first. Unfortunately, I got more confused instead. The CS I talked to said if I'll do it offline, I need to file MP2 redemption in the Pag-ibig branch where my office is tagged with. So I thought online redemption is better.

However, when I checked the requirements for online redemption, I found out I need to have Pag-ibig loyalty card. I don't have it yet, not actually seeing the benefits of it so I didn't apply. Apparently, it's needed if you are going to redeem MP2 online. I think it's also needed if you'll apply for loans online.

Anyway, since I don't have the Pag-ibig loyalty card yet, I decided to go to the nearest Pag-ibig branch. And here's what I found out, you can actually file MP2 redemption in any Pag-ibig branch (whatever branch is nearest to you). So instead of applying for loyalty card, I instead apply for MP2 redemption.

Here's what you need to do if you're applying for MP2 redemption offline:

1. Go to the Pag-ibig branch nearest to your place of residence or office. Make sure to bring 2 valid IDs (passport, GSIS ID, driver's license, SSS ID, voter's ID)
2. Ask for MP2 redemption application form. You'll also be given queue number when you get the form (there might be a number of transacting members so of course, you need to fall in line).
3. Fill-up the application form and then sign it. Note: bring your own pen as there's no available/free pen there.  
4. Wait for your queue number to be called or for the queue number to appear in the large display monitor.
5. Go to the assigned counter and submit your form. The counter clerk will check the form and your IDs and once everything's okay, you'll be given a stub as proof that you actually submitted the application.

MP2 maturity settlement or redemption will take 22 working days (one month) to be processed. It could be shorter if everything's in order, just like my case. I got a notice that I can pick-up the check already, two weeks after submission of my application. I'm still in the province so will pick it up once I returned to Manila.

And that's it, easy peasy MP2 redemption right. Happy investing everyone!