Why You Should Have an MP2 Savings Account or the Modified Pag-IBIG 2 Savings
Do you want to save money for a rainy day? There’s no denying how tough times are these days. With the cost of living continuing to rise, it’s more important than ever to start saving for our future. One of the best ways to save money is by opening an MP2 savings account or a Modified Pag-IBIG 2 Savings account. This is a special savings account offered by the government that offers a higher interest rate than a regular savings account. In this blog post, we will discuss the benefits of opening an MP2 account and how it can help you achieve your financial goals.
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What is a Modified Pag-IBIG 2 Savings Account?
The MP2 is an optional program that offers a larger earning potential than a conventional savings account, in contrast to the regular Pag-IBIG program, in which all working and self-employed Filipinos participate. Similar to investing in mutual funds, Pag-IBIG will invest your savings and generate income through dividends.
Since its debut, MP2 savings has been producing dividends that are tax-free and pay higher interest than typical savings accounts. Pag-IBIG MP2 dividend rate was 7.23 percent in 2019 and has traditionally risen year over year. Every year in March, the dividend rates are released. The announcement is posted on the Pag-IBIG website.
How Much Money May Pag-ibig MP2 Possibly Make?
As was previously indicated, your MP2 account will generate income through dividends, and the amount you receive will depend on how much money you have invested in MP2 and how long you have been investing. Pag-IBIG MP2 is a long-term investment; your ability to ride the market’s ebbs and flows and collect enough gains to offset the market’s losses will determine whether or not you ultimately benefit from its gains.
What are the Benefits of an MP2 Savings Account?
Higher Interest Rate Than a Regular Savings Account
As we mentioned, one of the biggest advantages of an MPI savings account is the higher interest rate. For example, in 2017 the dividend rate was at its highest at 8.11%. In 2021, the dividend rate was at 5.66%. Compared to other high-yield savings accounts, the MP2 program allows you to earn as much as 8% of your savings fund annually. The minimum monthly remittance of 500 is multiplied by 12 months to determine the average daily balance required for the MP2 to generate interest. Even though MP2 requires a larger overall average daily amount to receive interest than other banks do, the average annual yield is significantly higher.
You Can Withdraw Dividends Each Year or Compound Them for Five Years
Dividends from MP2 can be withdrawn annually or added to a savings account to generate compound interest. You can utilize the money to pay for necessities or emergencies if you wish to withdraw it immediately to your bank account. However, if you have it compounded for five years, you might anticipate earning more on your money.
You May Withdraw Your Funds Whenever You Want
You have the choice to withdraw your money at any moment even though MP2 funds can be kept for five years.
The government backs up your savings. But taking into account annual dividend performance and other factors, it can be subject to a different calculation method.
Simple Online Account Opening
You can be automatically enrolled and begin making contributions at any time by completing the online MP2 Savings registration form.
Who Can Enroll in MP2 Pag-IBIG?
If you fall under one of the following categories, you are eligible for the MP2 savings program:
- Active Pag-IBIG Fund members
- Former Pag-IBIG participants with additional monthly income
- Retirees of any age who made at least 24 monthly Pag-IBIG I contributions prior to retirement
Resuming payments till they achieve the minimum 24 monthly contribution criteria will allow inactive members who have ceased making Pag-IBIG contributions to join MP2 Pag-IBIG. If you’re not yet a member of the Pag-IBIG Fund, you must first register as a Pag-IBIG member online and make contributions for at least 24 months.
Steps for Pag-IBIG MP2 Application
Both online and in-person applications for the MP2 savings program are accepted at Pag-IBIG offices. Learn how to start an MP2 savings account by reading on.
- Visit www.pagibigfundservices.com/MP2Enrollment to access the Modified Pag-IBIG II Enrollment page
- Put in your last name, first name, and birthdate (MM/DD/YYYY), along with your Pag-IBIG Membership ID (MID) number
- Fill out the CAPTCHA code.
- Enter the sum you want to send each month to your MP2 savings in the Desired Monthly Contribution section
- Choose one from the drop-down menus:
- Preferred Dividend Payout: Whether you want your MP2 dividends to be paid out annually or at the conclusion of the five-year term
- Mode of Payment: If you would rather pay your MP2 contributions over the counter at any Pag-IBIG branch or through any Pag-IBIG Fund-accredited collecting partners, you can do so.
- Source of Funds: Where your MP2 payments will come from.
8. Your completed Modified Pag-IBIG II Enrollment Form, which includes your 12-digit MP2 account number, will be visible. This form can be printed or saved as a PDF document.
The Pag-IBIG Fund’s MPII savings program is a great way to save for the future. The Modified Pag-IBIG II Enrollment Form can be completed in just a few minutes, and you can begin earning interest on your contributions right away. And best of all, your MPII account is backed by the government, so you can rest assured that your savings are safe.
So what are you waiting for? Start saving today!
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