Welcome to the world of smart financial growth! In this guide, we’ll show you How to Invest in Pag-IBIG MP2 Using GCash. Get ready to take control of your financial future with ease.
When it comes to investing, one of the most challenging things is finding a vehicle that gives a decent return without being too risky. Investments with safe returns would be few and far between. However, there are also investments that offer sky-high returns despite being risky.
The deposit products are one of the safest investments. On this end, CIMB and ING offered higher rates, sometimes as high as 4% per annum. 4% / 12 months, however, translates into 0.33% per month if we look at it from a monthly rate perspective. Still, it’s not a great number. Today, digital banks no longer offer this rate when you look at their offerings.
Take a moment to consider it. At the time of the writing of this article, inflation in the Philippines is around 6% per month. Approximately this amount of value is being lost per month by the peso. What is the reason for its depreciation?
Several factors contribute to higher production costs, including the war in Ukraine. Additionally, banks across the globe kept printing money to pay creditors and for other earmarked funds during the pandemic. The fact that economy is kept afloat by printing also means that the value of all our existing money is gradually losing value over time.
Aside from that, stimulus packages were given to people who were mostly unemployed during the pandemic for them to spend. Due to the lack of production as a result of the unemployment rate, things became more expensive, which led to inflation. There have already been two stimulus laws passed in the Philippines (Bayanihan to Heal as One Act, and Act 2).
As with many countries, the US is currently experiencing hyperinflation since it printed plenty of money to fund its own stimulus package. We need to invest our extra funds while we can in order to avoid a worldwide depression in the near future.
Although I have digressed somewhat, I am hoping this will keep us focused on growing our wealth in the future.
How does Pag-IBIG MP2 Savings work?
It is a 5-year maturity savings program offering high dividends that has been modified to fit the requirements of the Modified Pag-IBIG2 (MP2) Savings Program. There is a difference between this fund and Pag-IBIG Regular Fund. If you opt not to receive dividends, the dividends will compound with your existing savings. Dividends are paid out each year, however, you can choose not to receive dividends.
MP2 has the following advantages:
- It is recommended that you invest a minimum of Php 500. Maximums do not exist.
- There is no tax on dividends.
- Missed payments are not subject to penalties.
- Multiple MP2 accounts can be opened.
Each year, you need to pay Php 500. There are a lot of leniencies and flexibility in it, that’s for certain. If you have some extra money, I recommend investing it. The employer can also automate the payment every payday. The best way to take care of yourself is to pay yourself first.
What are the benefits of the MP2 Savings Program offered by PAG-IBIG?
If you have contributed to Pag-IBIG within the last six months you can avail of this benefit.
What is the dividend rate for PAG-IBIG MP2?
Based on historical trends, we can expect average growth around 5-6% per annum. Investing in this investment will ensure your money is safe and beat inflation.
What is the risk level of this investment? Do I have a guarantee on my money?
As the dividends are generally tied to loans related to housing in the whole country, the Pag-IBIG fund provides the bulk of dividends. Also, corporate bonds and government securities are included in the investment. Because the money is guaranteed by the government, there is little risk involved.
What is the process for receiving dividends?
Dividends may be paid annually or accumulated based on the amount you’ve put in. If you choose the latter, you’ll get dividends every year.
Dividends should be credited to your bank account if you want your dividends to be automatically received each year. To do this, you will need to go to a Pag-IBIG office, fill out and submit this form.
When I reach the maturity age of 5 years, how will I receive my money?
A receipt can be obtained by completing and submitting this claim form in a Pag-IBIG office. Your receipt will tell you how long it will take for your check to arrive.
However, there are certain conditions that must be met before you can claim your money early:
- Retirement
- Disability as a whole
- Health concerns resulted in termination of service
- A family member or yourself dies or suffers a critical illness
- Abandonment of the country permanently
It is also possible to claim your money before maturity without completing these conditions, but if you choose the yearly claim, you will only receive half of your dividends. You won’t be able to claim dividends if you have compounded your dividends with your savings.
Is it possible for me to view the contribution I made to my PAG-IBIG MP2 Savings account?
In the portal, you’ll find your contributions if you have a virtual Pag-IBIG account.
Are there any plans to mature the PAG-IBIG MP2 Savings program?
In fact, some people recommend putting the entire amount in as a lump sum and waiting another 5 years for it to mature. Retirement nest eggs can be created from it.
There is no limit to the number of MP2 accounts you can open simultaneously. These accounts also have savings associated with them, which must also be paid for.
How do I get my money if I don’t receive it at maturity?
It will continue to earn dividends through MP2, but not through MP2. Dividends will no longer be paid after two years.
I am interested in enrolling in the MP2 Savings Program. How do I proceed?
Either enroll in person or online with Pag-IBIG. This can be done online in just five minutes, since it’s really easy.
Visiting a Pag-IBIG office for enrollment has the advantage of also processing other requests, like automatic crediting of dividends to your bank account.
To participate in this event, you must have your MID (member ID) prepared in advance. You can enroll online by following these steps:
- You can fill out the online form at the PAG-IBIG website.
- The program lets you input your monthly contributions, preferred dividend payouts, payment methods, and funding sources.
- As soon as the enrollment form is submitted, you will be able to download a PDF file with all your information. For you to be able to invest more, you will need your MP2 Account Number.
- It’s that simple, and your contribution will be received immediately.
What is the process for re-enrolling in the program?
If you are enrolling in another account, you will need to redo step #1 above.
How do I use GCash to pay my PAG-IBIG MP2 contribution?
In the GCash app, there is an option to pay directly through the Pag-IBIG biller, which is the fastest and easiest way to use GCash.
With GCash Pay you can pay your MP2 Savings through PAG-IBIG
You can pay for your contribution using GCash by opening the Pag-IBIG biller.
- You can search for Pag-IBIG by selecting Bills from the GCash main page.
- Choosing “Modified Pag-IBIG II Savings” will provide you with a dropdown menu. You should enter your MP2 account number as Account No. Make sure you don’t include your MID.
- I recommend putting in the current date in the “Period Covered” fields, as they aren’t really used with MP2.
- Payment confirmation is required. Convenience fees of Php 5 apply.
Utilizing GCash to pay for Pag-IBIG MP2 through the Virtual Pag-IBIG portal
A Virtual Pag-IBIG account allows you to make payments within the site.
Follow these steps:
- Visit the Pag-IBIG Virtual Portal.
- “Pay Online” and “MP2 Savings” can be found on the left panel.
- The Paymaya landing page will be redirected once you have entered your MP2 account number.
- Go through the payment process with GCash. This service comes with a Php 5 fee.
FAQs
MP2 Savings can be invested only if I have a Virtual Pag-IBIG account?
What is the monthly investment requirement for MP2 Savings?
Can you add GCash to your MP2 Savings account up to a certain amount?
Increase your account limit by unlocking it
The following will become available once you have done so:
Increasing wallet limits – maximum Php 500,000
Your wallet will have a maximum balance of Php 500,000, and you can cash-in daily with no limits
You will be able to withdraw Php 10,000 a day and withdrawals will not be limited per month
An SMS will notify you when your limits have been increased.
Summary
Since we are in the middle of this pandemic and we have high inflation as a result of the stimulus packages, I wrote about the benefits of investing to beat inflation. Dividends are paid to holders of the Pag-IBIG MP2 Savings account every year for a period of up to five years. Government guarantees the dividends and the dividends are tax-free.
As I explained earlier, you can make an MP2 account by visiting the Pag-IBIG website and investing with your GCash account. As a result, investing in these kinds of vehicles should become easier for everyone.