Saving Money with Modified Pag-ibig II — Higher Earnings, Government-Guaranteed
Updated January 11, 2013
Puede mo nang iwidro ang total Pag-ibig 2 savings mo earlier than your maturity date.
———————————–
You want to save and grow your money? Modified Pag-ibig II (MP2) is a great savings plan. It has advantages over regular savings accounts, time deposits, or pre-need plans.
What are the advantages of Modified Pag-ibig II?
1. Guaranteed by the Philippine government.
Hindi nawawala parang bula, kagaya ng nangyari sa maraming pre-need firms na mismanaged by families na hindi na naawa sa mga planholders nila.
2. The interest rate is much higher.
As of April 2010, the annual interest rate for Modified Pag-ibig II was 5.5%, walang tax, and much higher than savings account rates na usually ay between 0.5% to 1.75% lang. Bukod sa mababa na ang interest ng savings account, mababawasan pa ng withholding tax.
The Pag-ibig board can also declare an interest rate of more than 5.5%.
Sa time deposits naman, rates range from only 1.75% for deposits of at least 10,000 pesos to 2.75% for at least 5 million pesos.
Merong 5% na interest rate, pero ito ay ibinibigay sa mga at least 1 million pesos na hindi gagalawin for 5 years.
Isa pa, sa savings account, instead na saving money, ang ilan ay nalulugi pa, kasi madalas nababawasan ang savings dahil nagwi-widro sa ATM ng ibang bank at hindi name-maintain ang required balance.
The interest rate can go up, if the Pag-ibig board finds time to feel more generous dahil lumaki ang kita ng Pag-ibig.
Yong recent Pag-ibig table of expected earnings, 6% ang ginamit nila na interest rate:
| Monthly Hulog | Total Ipon After 5 Years (at 6%) |
| 500 pesos | 34,922 pesos |
| 1,000 | 69,844 |
| 1,500 | 104,765 |
| 2,000 | 139,687 |
| 5,000 | 349,218 |
3. Tax-free ang interest earnings ng MP2. Walang bawas.
Ang time deposit, merong 20% withholding tax sa interest income, except lang sa mga 5-year tax-free time deposits. Ang savings account, meron ding 20% withholding tax sa konting na na-earn na interest.
4. Low monthly minimum savings amount, which is 500 pesos per month. Puede mong dagdagan.
5. Your savings are still yours, even if you’re unable to continue contributing to the program.
Sa pre-need, mawawala ang 50k, 100k, 150k mo kung hindi mo naituloy kahit valid ang dahilan, kasi pinirmahan mo yong contract na ganon.
6. You CANNOT withdraw your Pag-ibig savings anytime. Maganda ito, in the sense, na hindi mo siya magagasto sa kung anu-ano lang. Hindi mo rin siya puedeng iwidro at ipahiram sa nakikiusap. ”Ay sori talaga, nasa Pag-ibig kasi savings namin eh, hindi puede iwidro.”
Update as of January 2013: Naglabas ng bagong circular ang Pag-ibig at sinabing meron ka nang option to withdraw your Pag-ibig 2 savings earlier than your maturity date. Palagay ko, maraming OFWs ang nakiusap na lagyan ng withdrawal flexibility itong savings program para sa mga OFWs na unexpectedly biglang nawawalan ng contract at nangangailangan ng pera.
Puede ring tinutulad nila yong SSS Flexi-Fund, which can be withdrawn before maturity date, but with earnings deduction kapag withdrawn within a year.
7. You CANNOT borrow it. Hindi puedeng mag-loan dito. Yong sa mandatory Pag-ibig I, doon ka mag-loan. Advantage itong hindi mo ma-loan, kasi hindi mo magagalaw.
8. Available for withdrawal after 5 years. Oh ayan, puede nang iwidro! Pang-tuition, o pang-down sa house and lot, or pambili na ng bahay.
Kung ayaw mo pa, at gusto mo pang dagdagan, you can keep on saving money by renewing it for another 5 years.
Who can save with Modified Pag-ibig II?
Anyone who is already a member of Pag-ibig I. Dapat mag-member muna sa Pag-ibig I kasi ito ay mandatory. Ang Pag-ibig II ay voluntary. Puede sa OFW, sa seaman, at sa employee, self-employed or business owner dito.
How do we start saving with Pag-ibig II?
Visit any Pag-ibig branch with your IDs and apply for Modified Pag-ibig II membership. Fill out a Modified Pag-ibig II Registration Form (MP2RF). You can start with 500 pesos, or go ahead with 5,000 pesos.
Updates as of January 11, 2013:
- Meron ka nang option to withdraw your Pag-ibig 2 savings earlier than your maturity date.
- Kapag wala kang isinulat na term ng savings mo, ang default term ay 5 years.
- Kapag sinulatan ka ng Pag-ibig notifying you na nag-mature na ang Pag-ibig 2 savings mo at dapat mo nang kunin or i-renew pero hindi mo kinuha o hindi mo ni-renew, ang magiging interest rate ng savings mo ay yong interest rate ng Pag-ibig 1, which is a bit lower.
Saving Money with Modified Pag-ibig II
Comments
12 Responses to “Saving Money with Modified Pag-ibig II — Higher Earnings, Government-Guaranteed”
Leave a Reply
-
Custom Search -
About Author
Hello, I'm Mrs. Nors.
I write based on my experiences and research and I answer questions the best I can at the moment I'm writing my answers.
For critical questions, please ask others also to confirm my answers in case I missed something...baka lang merong updates or changes that I missed.
Thank you very much for visiting this blog.
This is my background, if you're interested.
Yes, required na hulugan mo rin ang P1 mo…kahit yong minimum lang.
San pwd mghulog ng pera?
Hi monette, have you registered? Do you have your Pag-ibig MID no.? Pay first at Pag-ibig, then later on you can pay at Landbank and Metrobank. Soon… members can pay at Bayad and SM business centers.
May maximum limit ba ang monthly deposit sa PAG-IBIG II?
I mean may maximum limit (amount to be save) per month ang pwd lang I savings sa PAG_IBIG II?
Hi owie, there’s no maximum limit for monthly contributions for Pag-ibig 1 and 2. For Pag-ibig 1, there’s a maximum limit for the employer’s share — it’s 100 pesos.
Hi,
so pag nkaenrol ba sa pag-ibig 2, may counterpart po ba ang employer dito o ako mismo ung mag remit ng monthly contributions ko?
Hi Adel, employers do not contribute to their employees’ P2. P2 is purely voluntary. You can request your employer to remit also your P2. Or you can pay directly to Pag-ibig. You’ll have a different MP2 no.
Hi, isa po akong OFW pano po ako makakapag avail ng program nyo and nastop po ung hulog ko sa Pag ibig ko last September 2012 pano ko po mababayaran un lalo na po di ko matandaan ung Pag ibig number ko. thanks po.
Hi cherry, register at pagibigfund.gov.ph so you can get your Pag-ibig MID no. If you already have a Pag-ibig MID no. but forgot it, the same number will be given to you after registration. How to get your Pag-ibig MID no.
Hi, I already enrolled at Modified Pag-ibig 2.I just want to ask if I can also pay my MP2 contribution at supported banks, bayad centers or online? What documents/forms do I need to bring? Thanks.
Hi Lea, sorry I’m not sure yet if Bayad Centers or SM Business Centers are collecting MP2 now…because the last time I asked they’re accepting only Pag-ibig housing loan payments. But I checked bayadcenter.com and saw that they’re now accepting Pag-ibig contributions, so I think if you have your MP2 no., you can pay. Monthly MP2 payment is at least 500 pesos.