Tue. May 21st, 2019
pagibig fund mp2 program

Is Modified Pag-IBIG II (MP2) Beneficial for OFWs?

Overseas Filipino Workers do all the sacrifices to provide for their families back home. These hardworking Kababayans chose to work in foreign soil because they aspire for a better future for their loved ones. And they have the money to spend when it is needed.

Working abroad provides OFWs the rare chance not just to earn well but also to save out of their hard-earned wages for future use. OFWs are always advised to save while still working in anticipation of inevitable circumstances which may put them in deep financial troubles. If you have something in mind to spend after five years, consider opening an MP2 account, known as the Modified Pag-IBIG II savings program, now.

Under the supervision of the Home Development Mutual Fund (HDMF), The MP2 is an alternative savings scheme offered to all active Pag-IBIG I (P1) members who want some extra earnings. The MP2 program, which is different from P1 membership savings program, is a tax-free, renewable five-year savings plan with earnings and dividends higher than regular investment schemes in domestic banks. This optional savings program is good for short-term plans, which can be used for emergency cases, tuition fees and family vacation.

Under the supervision of the Home Development Mutual Fund (HDMF), The MP2 is an alternative savings scheme offered to all active Pag-IBIG I (P1) members who want some extra earnings. The MP2 program, which is different from P1 membership savings program, is a tax-free, renewable five-year savings plan with earnings and dividends higher than regular investment schemes in domestic banks. This optional savings program is good for short-term plans, which can be used for emergency cases, tuition fees and family vacation.

Pag-IBIG II mp2 program

Interest and dividend rates are flexible but still far better than P1 membership savings program. The best thing is, all earnings and other dividends are guaranteed by the Philippine government, which means you will not lose your savings. The Mp2 program is not like a typical savings account and you can’t even use this to access other Pag-IBIG loan programs.

OFWs are eligible to enroll, provided they have an active Pag-IBIG membership with a regular monthly contribution. There’s no age limit or additional documents required to qualify. The MP2 program is also open to former OFWs and retired OFWs provided that their membership status remains active while working abroad. Those retired OFWs with at least 24 months of paid contributions prior to enrollment are also qualified to join.

For a minimum contribution of Php500 a month, you can start investing through MP2. You can claim all your earnings and dividends after five years upon submitting the required documents.

Pag-IBIG II mp2 program

In cases like death, permanent disability, and mental health problems, the Pag-IBIG fund can be withdrawn within the prescribed 5-year period. Upon receiving the funds, the holder can decide to register a new MP2 account again and reinvest the money for another five years.

The MP2 program is beneficial to all OFWs because they will enjoy the Total Accumulated Value (TAV) without a 20% withholding tax. Imagine this, a monthly contribution of Php500 for five years will earn Php4,484.17 or a 14.95% interest which is a better offer than any financial institutions.

The Pag-IBIG II is an effective way of helping ordinary Filipinos by investing their hard-earned money in a government-endorsed savings facility that will protect their interest. This makes an ideal choice for OFWs in pursuit of their goals.

1 thought on “Is Modified Pag-IBIG II (MP2) Beneficial for OFWs?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.