How to Claim MP2 Savings (with MP2 Dividends)

In a previous article, you've learned how to open an MP2 Savings account. If you missed that part, you can read first it here. Take your time in reading and go back here after.

If you're done, let's proceed to discuss the step-by-step process of claiming your dividends and savings upon maturity.

Let's dive in.

How to Claim MP2 Savings and Dividends

Where Pagibig invests your money

Have you ever wondered where your hard-earned money goes when you invest in Pagibig Funds? Don’t worry. As mandated by its charter, at least 70% of Pagibig’s investible funds, including your savings, are invested in housing finance. Pagibig Funds also diversify their investments in government securities and corporate bonds, with earnings distributed annually as dividends to all members.

Claiming your dividends and savings

You have two options for claiming your MP2 dividends: upon maturity and annually.

• Upon maturity. You can claim your dividends after the 5-year maturity period of your MP2 savings account. Your dividends will be compounded annually. So, you will earn more interest. In addition, claiming dividends here is together with your savings (if you opt to withdraw your savings, further discuss in the later part) because as mentioned earlier MP2 savings account matures after 5 years.

• Annually. You can also choose to receive your dividends yearly. Your dividends will be credited to your savings or checking account enrolled in any of Pagibig Funds’ accredited banks. If you opt for a yearly dividend pay-out and don’t have a Philippine bank account, your annual MP2 Dividends will be released via check. However, if you decide not to touch your annual dividends it will just add up to your savings which you can have at the end of its maturity period.

Important note: Your chosen dividend payout mode is fixed during the 5-year savings period, so think carefully before you tick that box in your application. You can, however, opt to open another MP2 account with a different payout preference.

Dividend rate calculation

Let's say you’re claiming your MP2 dividends in its final year before the dividend rate for that year is determined. In that case, the dividend rate declared from the previous year or the latest declared dividend rate will be used in the computation. Furthermore, always check here for the updated MP2 dividends rate or visit a branch for more details.

How to Claim MP2 Savings Online

Thanks to Virtual Pagibig, claiming your MP2 savings and dividends online is made incredibly convenient. Personally, the Virtual Pagibig platform is advisable for a hassle-free transaction. So, if you haven't registered to a Virtual Pagibig account, check the easy and fast online account registration here.

Here’s a simple guide to help you navigate the online claiming process through Virtual Pagibig:

1. Download and fill out the Claim Application Form (see below sample image). Provide the required information and your signature. Then, photocopy or scan the form for submission.

2. Prepare a valid ID and your Loyalty Card Plus.

3. Take a selfie holding your ID and cash card.

4. Enter your MP2 account number for validation. Take note MP2 number is different from your regular Pagibig number.

How to Claim MP2 Savings at Pagibig Branch

If you prefer face-to-face, you can visit any Pagibig Fund branch nearest you for over-the-counter claims.

Follow these steps:

1. Download the Claim Application Form. Complete the information and submit it.

2. Bring necessary documentation like a valid ID and your Pagibig Loyalty Card Plus.

Remember that when you transact at the branch expect the queue of lines. Unless you come on a day when only a few people visit the Pagibig branch. Thus, if I were you maximize the use of your Virtual Pagibig account.

Withdrawal Options

As mentioned above, withdrawal of savings will be after the 5-year maturity period which you will have together with your dividends unless you already claimed your dividends through annual payout. Nevertheless, you have the option not to withdraw your savings after the maturity period. The downside, it will stop earning dividends under the MP2 savings rate. Instead, it will be earning dividends based on the rate of the Pagibig regular savings but only for the next two years. After that, it will stop making dividends at either the MP2 savings rate or the regular savings rate. Therefore, it is recommended that as your MP2 savings account matures after 5 years, you just have to re-apply the MP2 savings account to maximize the dividends part.

Pre-termination Conditions

Based on the following conditions, you can pre-terminate and withdraw your savings before the maturity period. Check the conditions below if you are an active member, retiree, or pensioner, with compounded dividends or annual payout dividends.

For active members:

• Total disability or insanity

• Termination from employment due to health reasons

• Retirement

• Permanent migration to another country

• Unemployment due to company closure or layoff

• OFW repatriation from the host country

• Death of the MP2 account holder (savings to be received by the beneficiaries)

• Critical illness of the account holder or an immediate family member (certified by a licensed physician and subject to approval by Pagibig Fund)

For retirees and pensioners:

• Total disability or insanity

• Death of the MP2 account holder (savings to be received by the beneficiaries)

• Critical illness of account holder and immediate family member (certified by a licensed physician and subject to approval by Pagibig Fund)

For members with compounded dividend payout on their savings:

• Principal MP2 Savings

• 50% of the total dividends earned from prior years

• 50% of the dividends for the current year, to be released after the dividends for the said year have been declared and credited.

For MP2 Savings with annual dividend payout:

• Principal MP2 Savings

• 50% of the total dividends received from previous years to be deducted from the proceeds

• 50% of the dividends for the current year, to be released after the dividends for the said year have been declared and credited.

Final Thoughts

There you have it. Your guide on how to claim MP2 savings and dividends. You can have it after the 5-year maturity period or before your MP2 account matures based on enumerated conditions. Indeed, it has never been easier, especially with the user-friendly Virtual Pagibig platform. Make the most of your investments by understanding your options and making informed steps toward your financial goals.

Stay tuned for more investment blogs here.

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