Junior ISA

Reasons to invest in a Junior ISA with myM&G

If you're a parent or guardian, setting up a Junior ISA with myM&G is a simple and flexible way to save for your child's future.

Junior ISAs are special tax-efficient savings accounts that can be accessed by children when they turn 18 – so you really could be playing an important part in your child's financial future.

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.

Here's how Junior ISAs work:

• If you have parental responsibility or legal guardianship for a child, it's easy to open a Junior ISA – when you've done this, you are known as the Junior ISA's 'Registered Contact'
• As the Registered Contact, you can manage the Junior ISA on myM&G alongside any other M&G investments you may have
• Invest £9,000 (on their behalf) in the 2021/2022 tax year by monthly instalments, or as a lump sum or gift
• Just like an ISA, the Junior ISA is tax-efficient, so you won't need to pay personal income or capital gains tax on any profits
• Tax-efficient status also means you can still claim any tax allowances that you're due because of your age or personal circumstances
• Setting up a Junior ISA will have no effect on your individual ISA allowance (which is £20,000 during the 2021/2022 tax year)
• It's easy for others to add money to the Junior ISA – they just need to make a bank transfer to you (the Registered Contact). Once you‘ve received the money in your account, you can then start investing for them
• Children can control their own accounts once they reach 16 and can access their money aged 18 – at this point the Junior ISA turns into an ISA
• We'll never charge you for transferring your child's Junior ISA out, unlike some other providers
• Junior ISAs are available to all UK resident children who don't already have a Child Trust Fund (CTF). If a child already has a CTF it can be transferred into a Junior ISA but the child cannot hold both