Why You Should Learn to Invest Money in Voluntary Savings Program – The Home Development Mutual Fund (otherwise known as Pag-IBIG Fund) is relaying the good news to Filipino workers for them to learn to invest money in voluntary savings program with higher yields and shorter terms. This new undertaking dubbed the Pag-IBIG II Program is a really good savings program for workers who want to invest money for their future.
“Under this Program, Pag-IBIG members have a savings option with a term as short as five years and a preferential dividend rate that is higher than that of regular membership (Pag-IBIG I),” explained Vice President Noli de De Castro, concurrent chair of the Housing and Urban Development Coordinating Council (HUDCC) and the Board of Trustees in Pag-IBIG Fund.
Last year, Pag-IBIG dividends amounted to P8.5 billion with a 5 percent rate, higher than any bank could offer. These will be credited to members’ saving accounts which they can get after 20 years and 240 monthly contributions.
The program is open to all Pag-IBIG I members and overseas Filipino workers (OFWs) with a monthly gross income exceeding P5,000. A member may contribute as low as P500 monthly. The resulting dividend earnings are tax free and guaranteed by the national government.
At a 6 percent dividend rate per annum, a monthly contribution rate of P500 can generate savings of P34,921.79 for five years and P81,655.02 for 10 years. If a member doubles his monthly contribution to P1,000, this will yield 5- and 10-year savings of P69,843.58 and P163,310.65.
Members who want to avail of the Pag-IBIG II savings mechanism should also maintain their mandatory Pag-IBIG I membership, where they have to contribute at least P100 monthly as employee counterpart and which has a 20-year maturity.
The Pag-IBIG Fund, through more effective collection procedures and prudent fund management, has posted consistent growth in its annual net income which reached P12 billion in 2009, the highest in its history. Pag-IBIG members’ benefit from the Fund’s steadily increasing income, as at least 70 percent of this, is set aside as dividends that are added to their total savings.
For more information, you can contact Pag-IBIG Fund Call Center (724-4244) or visit branches in near your are or log on to http://www.pagibigfund.gov.ph