BAGUIO CITY – On November 20, 2024, students at Saint Louis University in Baguio City were introduced to the benefits of the Home Development Mutual Fund (HDMF), also known as Pag-IBIG, by officials from Northern Luzon. Meriam Pamittan, head of the Pag-IBIG Ilocos Region, emphasized the advantages of starting to save early, noting that funds invested with Pag-IBIG earn an average annual interest rate of 5.5 percent.
The Modified Pag-IBIG II (MP2) savings program has proven particularly attractive to members in the Baguio area, with investments reaching PHP1.228 billion from July 2022 to September 2024. This period coincides with the start of the current Marcos administration. In contrast, regular savings during the same timeframe totaled PHP888.204 million.
In 2023, the MP2 program offered a dividend rate of 7.05 percent, surpassing the 6.55 percent rate of regular savings, as highlighted by Pamittan during the Kapihan sa Bagong Pilipinas event. She pointed out the uniqueness of these rates, stating, “You don’t get this kind of dividend rate anywhere.”
The MP2 program matures after five years, whereas regular savings can only be accessed upon retirement at age 60 or after 240 months of continuous contributions. Pag-IBIG data illustrates that a monthly contribution of PHP400 over 20 years would accumulate to PHP96,000, with the principal earning an additional PHP76,354.10 in interest, totaling PHP172,354.10.
Philip Raymund Salem, branch head of Ilocos Norte, also spoke at the event, noting the increasing financial savvy among members. He remarked, “Our members have become knowledgeable. They have learned where to put their money for higher returns,” reflecting a growing trend among Ilocanos to utilize Pag-IBIG’s savings options for future security and interest earnings.