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Investing for your children: a Junior Stocks & Shares ISA

Junior ISAs are a flexible, simple and tax-efficient way for you to save for a child’s future. Investments in a Junior ISA can only be accessed by the child when they reach the age of 18.

For more information on the financial terms used in this page, please consult the glossary.

What is a Junior ISA?

Junior ISAs are a flexible way to save for a child. Just like an ISA, they can hold company shares, bonds and cash. However, remember that the savings in a Junior ISA are locked in until the child turns 18.

Junior ISAs are available to UK resident children who do not have a Child Trust Fund (CTF) account. However, parents and guardians also have the choice to transfer a child’s existing CTF into a Junior ISA.

Should you already have a CTF account or want to invest more than the Junior ISA limit, there are alternative routes to access the long-term growth potential through The M&G OEIC or The M&G Savings Plan.

A Junior ISA must be opened by someone with parental responsibility or legal guardianship for the child. This person will be the ‘Registered Contact’ for the account.

How do Junior ISAs work?

  • The Registered Contact will have responsibility for the investment
  • You can invest up to £9,000 in a Junior ISA each tax year.
  • You can invest by regular monthly payments or a lump sum at any time
  • Anyone can gift or contribute money (including the child)
  • You can switch from a cash Junior ISA to a stocks and shares Junior ISA and back again (please note that M&G only offers a stocks and shares Junior ISA)
  • When the child turns 16 they can choose to take control of their Junior ISA account
  • The money can only be accessed by the child when they turn 18

 

Who is eligible?

  • Children living in the UK who do not have a CTF account
  • The account must be opened by a parent or legal guardian
  • Children living in the UK who have an existing CTF account and wish to transfer to a Junior ISA

 

Is a Junior ISA subject to tax?

  • Any returns generated are free from personal income and capital gains tax
  • The annual Junior ISA allowance of the Registered Contact or any Third-Party Contributors is not affected
  • You don’t have to declare a Junior ISA on your personal tax return

ISA and Junior ISA tax rules may change in the future. ISA and Junior ISA tax advantages depend on your individual circumstances.

Contents

The M&G Junior ISA

A Junior ISA is a long-term investment that your child could hold for up to 18 years, so it makes sense to choose an expert in the field. At M&G, we have nearly 100 years of investment experience and the size and the scale of resource to give your child a head start with their money.

We believe that Junior ISAs could have a key role in every parent or guardian’s long-term financial plan for their children.

Please note that, due to our focus on long-term investing, M&G only offers a stocks and shares Junior ISA.
 

Why choose The M&G Junior ISA?

  • Invest from as little as £10 per month
  • Pay no entry charge and no exit charges (an ongoing charge will apply)
  • Choose from our extensive range of expertly managed funds
     

Is the M&G Junior ISA right for me?

This guide explains more about who The M&G Junior ISA is designed for, but please note this is our view and doesn’t take into account your individual circumstances.

How do Junior ISAs and ISAs compare?

Junior ISA
ISA
Annual investment limit as at the current tax year: £9,000Annual investment limit as at the current tax year: £20,000
You can hold one cash and one stocks and shares Junior ISA at a time, with the maximum £9,000 split between them to suit you.

You can invest up to £20,000 in a stocks and shares ISA, a cash ISA, an Innovative Finance ISA, a Lifetime ISA or a combination.

Please note: different types of ISA have different annual investment limits.

Once invested in either a stocks and shares Junior ISA or a cash Junior ISA, with an investment provider, each annual allowance must be invested with this same provider unless the Junior ISA as a whole is transferred elsewhere.

You can’t invest each annual allowance with different providers unless a formal transfer of the investment has taken place.		Each year, you can choose to invest your annual ISA allowances with different providers. You can also transfer ISAs between providers at any point, without affecting your allowance for the current tax year. However, some providers may charge for this service. Whilst your investment is being transferred it will be out of the market for a short period of time and will not lose or gain in value.
You can switch from cash to stocks and shares and back again for greater flexibility.You can transfer from a cash ISA into a stocks and shares ISA and vice versa as often as you like.
Anyone can contribute into the Junior ISA as long as the total of all contributions does not exceed the annual limit. However, contributions can’t be returned and will belong to the child (the account holder).You must make subscriptions with your own money.
At 16, a child can open their own Junior ISA.N/A
Contributions are not accessible until the child turns 18, when the account automatically becomes an ISA.Contributions can be accessed at any time.

Transfer a Junior ISA to M&G

You can transfer existing Junior ISAs or CTFs with other providers to M&G whenever you like. They’ll keep all their tax benefits and we won’t charge you a penny to transfer. But, it’s always best to check with your current provider first because they may apply a charge their end when you transfer your investment elsewhere.

Please remember that while your investment is being transferred it will be out of the market and will not lose or gain in value.

Transfer a Junior ISA

Charges

Our charges vary between the funds that you can invest in, and then by the class of share they might hold. 

For each fund, you will pay an ongoing charge (which consists of an annual charge and extraordinary expenses) plus a share of portfolio transaction costs (the costs incurred when funds buy and sell investments). Please see our Fund charges page  for more details.

Share classes

We like to keep our charges simple. The share class available to you will depend on how you invest and the value of your holdings.

  • Sterling Class A Shares are for non-advised customers with up to £499,999 per fund
  • Sterling Class R Shares are for advised customers with up to £499,999 per fund or for total holdings on myM&G up to £249,999
  • Sterling Class I Shares are for customers with over £500,000 per fund or for total holdings on myM&G over £250,000


For more information, please visit our share classes page or read the Funds' prospectus.
Share classes

To see which share classes are available for your chosen fund(s), download our Important Information for Investors document.
Important Information for Investors document 

Our funds

Whichever fund(s) you choose for your Junior ISA and however you’d like to invest, there’s no substitute for experience. When you invest with M&G, you benefit from our size, scale and nearly 100 years of expertise in the investment industry.

We have a range of over 40 funds to help you achieve your goals across different asset classes including equities (shares in a company), bonds and multi asset.

Choosing the right mix of asset classesChoosing a fund

Find out more about the different asset classes available to you.

Explore asset classes

View the funds available in the Fund Centre.

Explore our funds

How to invest

Choose the option that best describes you, and we’ll guide you to the right place.

Start investing

I'm new to M&G

Learn how to open a Junior ISA with us and start building your child’s or grandchild’s savings for the future.

Start investing
Manage investments

I already invest with M&G

From adding more to your child’s existing Junior ISA holdings to opening a new product, it’s easy to manage your investments with us.

Manage investments

Investment limits (per fund)

Minimum investment limitsA SharesR SharesI Shares
Lum sum/Transfer in£500£500n/a
Monthy amount£10£10n/a
Additional lump sum£100£100n/a
Additional monthly amount£10*£10*n/a
MyM&G (our online-only service)n/a£1n/a

*Increases and decreases to investments need to be made in multiples of £10 per fund.

As at the current tax year, the maximum you can invest in an ISA is £9,000. 

Before you invest, you should read an up-to-date version of your chosen fund’s ‘Key Documents’: Key Investor Information Document (KIID), Prospectus and, for funds with sustainability characteristics or with a sustainability label, the Consumer-Facing Disclosure (CFD). You should also read the Important Information for Investors document, which includes M&G’s Terms and Conditions. 
 

The views expressed in this webpage should not be taken as a recommendation, advice or forecast. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. 

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested.

Explore our investing guides

Our guides aim to give you the basics about investing, to help you make informed decisions about your financial goals and how to reach them.

Read more

Guide to Multi-asset investing

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Guide to Equities

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Guide to Bonds

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Guide to Risk

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Guide to Investing

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Guide to Income

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Talk to our team

Contact us

M&G Investment Management Limited (MAGIM), M&G Alternative Investment Management Limited (MAGAIM), M&G Securities Limited (MGSL) and M&G Financial Services Limited (MGFS) are registered in England and Wales under numbers (936683, 2059989, 90776, 923891) respectively. The registered address of MAGIM, MAGAIM, MGSL, and MGFS is 10 Fenchurch Avenue, London, EC3M 5AG. MAGIM, MAGAIM, MGSL, and MGFS are authorised and regulated by the Financial Conduct Authority (“FCA”) under numbers 119328, 122011, 122057, 122058 respectively.