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 you (and a child) could reap the rewards of choosing to invest in a Junior ISA with myM&G:

• 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 2020/2021 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 2020/2021 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

M&G brings you more than 85 years of hands-on investment experience, as well as the size and scale of resources you need to help your child get a head start with their money. By investing as little as £1 a month, with no entry or exit charges, you can choose from our extensive range of expertly managed funds and make myM&G's Junior ISA part of your plan for your child's future. Please note, an ongoing charge plus a share of portfolio transaction costs will apply, both based on how much you invest and the fund you invest in.

To start investing with us today, simply click here

As with ISAs, Junior 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 a child's individual circumstances.