A TMR stack or a GMR stack, ultimately formed into a sensor or MRAM element, include insertion layers of Fe or iron rich layers of FeX in its ferromagnetic free layer and/or the AP1 layer of its SyAP pinned layer. X is a non-magnetic, metallic element (or elements) chosen from Ta, Hf, V, Co, Mo, Zr, Nb or Ti whose total atom percent is less than 50%. The insertion layers are between 1 and 10 angstroms in thickness, with between 2 and 5 angstroms being preferred and, in the TMR stack, they are inserted adjacent to the interfaces between a tunneling barrier layer and the ferromagnetic free layer or the tunneling barrier layer and the AP1 layer of the SyAP pinned layer in the TMR stack. The insertion layers constrain interdiffusion of B and Ni from CoFeB and NiFe layers and block NiFe crystalline growth.