Pag-IBIG II is the new savings program of the Home Development Mutual Fund (Pag-IBIG).  This new program, open for all Pag-IBIG I members and Overseas Filipino Workers (OFW), offers a voluntary savings program which gives higher yields and shorter terms.  Pag-IBIG I members and OFW’s must have a monthly gross income more than P5,000.  A Pag-IBIG member may contribute  at least P500 monthly.

Term options of as short as 5 years with preferential dividend rate higher that the regular membership (Pag-IBIG I), is provided under the Pag-IBIG II program

Dividends earned are tax free, and credited to members’ saving accounts which they can get after 20 years and 240 monthly contributions.

Under Pab-IBIG II, a monthly contribution rate of P500 can generate savings of P34,921.79 for 5 years and P81,655.02 for 10 year, given a 6 % dividend rate per annum,. Increasing a member’s monthly contribution to P1,000, will give a yield 5 and 10 year savings of P69,843.58 and P163,310.65.

Availing Pag-IBIG II does not mean you will give up the the mandatory Pag-IBIG I membership.  A regular member should still contribute at least P100 monthly as employee counterpart.  This contribution matures after 20 years.

Pag-ibig had a record breaking net income of P12 billion in 2009.