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ISA

ISA

Invest in a tax-efficient Individual Savings Account (ISA) with myM&G

Some people like to think of an ISA as a tax-efficient shopping trolley where you can place a selection of investments, including bonds, equities, property and cash, so they become tax-efficient – meaning your investment is free from personal income and capital gains tax.

Please note, an ISA is just a way of sheltering your money from tax – not an investment in its own right. And when you're deciding how to invest, it's important to remember that the value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.

At M&G we offer Stocks and Shares ISAs (not Cash, Flexible, Innovative Finance or Lifetime ISAs). Here's a summary of how you'll benefit from investing in an ISA with us:

  • You can invest up to £20,000 per tax year (2020/2021) – this limit is set by the Chancellor of the Exchequer
  • You can hold a mixture of equities, bonds, commercial property and even multi-asset funds in a tax-efficient way
  • We always want you to be happy with your investments, so if you're ever worried about the stockmarket's performance, we've got a 'Cash Park' where you can temporarily hold your investment in cash. You can then move cash from the 'Cash Park' into investments when you believe they have more potential
  • We'll never charge you for transferring out, unlike some other providers
  • You can rest assured that we'll always give you instant access to the money in your ISA
  • Because your ISA is a protective tax-efficient home for your investments, you won't pay personal income or capital gains tax on your profits. Please be aware that losses made in the ISA cannot be used to offset gains elsewhere
  • Tax-efficient status also means you can still claim any tax allowances that you're due because of your age or personal circumstances
  • Our Stocks and Shares ISAs are available to all full UK residents aged 18+, with income shares available for most of the funds we offer
  • Finally, in the unfortunate event of your death, your spouse will be entitled to an additional ISA subscription equal to the value of your ISA at the date of your death (this can be invested with M&G or can be transferred to another provider)

In the table below, you'll see how Stocks and Shares ISAs compare to Cash ISAs.

Please note, M&G do not offer Cash ISAs.

Stocks and Shares ISAsCash ISAs
Designed forLonger-term investments for five years or more, letting you share in the potential growth of the stockmarketsShort-term savings for less than five years, with no real risk to your money. But the real-life 'spending power' of your investment may gradually fall if the interest rate you're getting is lower than the UK's annual rate of inflation
Maximum investment£20,000 (2020/2021 tax year) - you can split your overall annual ISA allowance between Cash, Stocks and Shares, Innovative Finance and/or Lifetime ISAs as you wish £20,000 (2020/2021 tax year) - you can split your overall annual ISA allowance between Cash, Stocks and Shares, Innovative Finance and/or Lifetime ISAs as you wish
Investment optionsYou can choose from a wide range of investments including funds, trusts, bonds and individual sharesWith a Cash ISA there's no choice of investments – you'll simply get interest on your savings at a fixed or variable rate
Risks and returnsDepending on the performance of your investments, the value of your ISA can fall as well as riseA Cash ISA offers very little risk to your money, with interest added every year, or sometimes more frequently
Taking your money outYou can normally withdraw cash from your account within eight to ten daysVariable interest accounts normally offer instant access. But with fixed term accounts, you could lose interest if you withdraw cash early

MyM&G provides you with a great range of funds to choose from, plus all the benefits of over 85 years of investment experience and an active approach to investing.

We focus on helping you get the best from your money and enabling you to do all your investing in one easy place.

Click here to start investing

As mentioned above, ISA tax rules are set by the government, so they are subject to change at any time and the tax advantages they offer do depend on your individual circumstances.

When you save your money in an ordinary bank or building society up to £85,000 of your money is secure through the Financial Services Compensation Scheme, unlike a Stocks and Shares or bond investment.

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Invest in an ISA with myM&G in just three simple steps

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Transfer your ISA

Transfer your ISA with another provider to myM&G

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Junior ISA

Find out more about investing in a Junior ISA with myM&G

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