A method of forming a memory device having a magnetic tunnel junction, MTJ, storage element, the method comprising: forming a bottom electrode on a substrate; forming a pinned layer on the bottom electrode; depositing a dielectric layer on side walls of the bottom electrode and the pinned layer; patterning and etching a hole having sidewalls in the dielectric layer down to a surface of the pinned layer opposite to the surface of the pinned layer that is adjacent to the bottom electrode; depositing a tunneling barrier layer in a first portion of the hole to create a tunneling barrier on the surface of the pinned layer opposite to the surface of the pinned layer that is adjacent to the bottom electrode, wherein said tunneling barrier has a U-shaped cross section with first and second legs, said first and second legs being disposed and extending along the sidewall of the hole and perpendicular to the bottom electrode and the pinned layer; depositing a free layer in a second portion of the hole such that the free layer is on the tunneling barrier, wherein said free layer has a U-shaped cross section with third and fourth legs and is nested within the U-shaped tunneling barrier, said third and fourth legs extending perpendicular to the bottom electrode and the pinned layer; depositing a top electrode over the free layer; further comprising cleaning the bottom electrode layer and the pinned layer prior to the depositing of the dielectric layer; patterning and etching the bottom electrode and the pinned layer prior to the cleaning; and subjecting the bottom electrode and the pinned layer to a magnetic annealing process in a vacuum prior to the patterning and etching of the bottom electrode and the pinned layer. forming a bottom electrode on a substrate; forming a pinned layer on the bottom electrode; depositing a dielectric layer on side walls of the bottom electrode and the pinned layer; patterning and etching a hole having sidewalls in the dielectric layer down to a surface of the pinned layer opposite to the surface of the pinned layer that is adjacent to the bottom electrode; depositing a tunneling barrier layer in a first portion of the hole to create a tunneling barrier on the surface of the pinned layer opposite to the surface of the pinned layer that is adjacent to the bottom electrode, wherein said tunneling barrier has a U-shaped cross section with first and second legs, said first and second legs being disposed and extending along the sidewall of the hole and perpendicular to the bottom electrode and the pinned layer; depositing a free layer in a second portion of the hole such that the free layer is on the tunneling barrier, wherein said free layer has a U-shaped cross section with third and fourth legs and is nested within the U-shaped tunneling barrier, said third and fourth legs extending perpendicular to the bottom electrode and the pinned layer; depositing a top electrode over the free layer; further comprising cleaning the bottom electrode layer and the pinned layer prior to the depositing of the dielectric layer; patterning and etching the bottom electrode and the pinned layer prior to the cleaning; and subjecting the bottom electrode and the pinned layer to a magnetic annealing process in a vacuum prior to the patterning and etching of the bottom electrode and the pinned layer.