Junior ISAs

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.

Tax rules for both Junior ISAs and ISAs may change in the future and their tax advantages depend on your individual circumstances.

The value of 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.

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


OEICs enable investors to invest in financial markets through a managed fund operated by a professional fund manager.

Find out more about M&G OEICs

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 £4,368 in a Junior ISA until the end of the 2019/2020 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
  • When the child turns 16 they can choose to take control of their Junior ISA account
  • In addition, 16 – 18 year olds are permitted to open a Junior ISA and a cash ISA in the same tax year meaning they can choose to invest up to £24,368 tax-efficiently (please note that The M&G ISA is a stocks and shares ISA)
  • The money can only be accessed by the child when they turn 18
  • Please note: Sterling Class X Shares are no longer available for new investments in The M&G Junior ISA. On our Fund availability and fund types table (on page 4-6 of the attached document) you will find information about the specific share classes available in your choice of fund(s)

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 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

How do Junior ISAs and ISAs compare?

Junior ISA ISA
From 6 April 2019 to 5 April 2020 investment limit: £4,368 From 6 April 2019 to 5 April 2020 investment limit: £20,000
You can hold one cash and one stocks and shares Junior ISA at a time, with the maximum £4,368 split between them to suit you. From 6 April 2019 to 5 April 2020 you can invest up to £20,000 in stocks and shares, cash, an Innovative Finance ISA, a Lifetime ISA† or a combination.

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 previous years’ 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.


Contributions are not accessible until the child turns 18, when the account automatically becomes an ISA.

Contributions can be accessed at any time.

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

† From April 2017, 18-40 year olds will be able to open a Lifetime ISA and pay in up to £4,000 each tax year. They will be able to continue making contributions up to the age of 50. The government will add a 25% bonus to all contributions to a Lifetime ISA within the limits. However, it is important to note that the Lifetime ISA will count towards your annual ISA allowance.

* Shares of ownership in a company.

** A loan, usually taken out by a government or company, which normally pays a fixed rate of interest over a given time period, at the end of which the loan is repaid.

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 over 80 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.

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

The value of 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.

Funds available

Additional information

The M&G Junior ISA investment limits

Minimum investment limits
Minimum lump sum £500
Minimum monthly amount £10
Minimum additional lump sum £100
Minimum additional monthly amount £10

Share classes

Only the nominated share class for each fund is available for the majority of funds in The M&G Junior ISA. For more information, read the Important Information for Investors document. You’ll need Adobe Acrobat to read this document.

Charges and discounts

There are no entry or exit charges when you invest in The M&G Junior ISA. An ongoing charge will still apply, please see the relevant
Key Investor Information Documents (KIIDs) for details.

Invest now

Before investing, please make sure you have read the Prospectus, Key Investor Information Documents (KIIDs) and Costs and charges illustration for the fund(s) in which you wish to invest. Here you will find more information about your investment, including details about the fund’s different share classes: be sure to choose the appropriate one for you. The KIIDs also explains fund charges, including the ongoing charge, a deduction from your fund which M&G makes to cover the costs of investment management and administration.

You should also read the Important Information for Investors document, which includes M&G’s Terms and Conditions.

You’ll need Adobe Acrobat to view both these documents. 

We don’t give financial advice, so you should speak to a financial adviser if you need help deciding if an investment is right for you. The views expressed in this document should not be taken as a recommendation, advice or forecast.

Once you’ve chosen the fund(s) in which you’d like to invest and have read the relevant KIID and the Important Information for Investors document, you can:

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