Be warned – banks tell me they WON’T be ready for major Isa shake-up, says SYLVIA MORRIS

Savers have been promised a shake-up of Isa rules, which will make tax-free saving easier than ever.

But with a month to go until April 6, when the changes are meant to kick in, industry insiders say providers are far from ready.

It could be long after the deadline that savers will benefit — and some providers may not bring in the changes at all.

That’s why you need to be nimble to ensure you profit from the new rules as soon as possible.

The biggest change is that from the new tax year on April 6, savers will be able to pay into as many Isas as they like — with as many providers as they choose.

The onus will still be on savers, though, to stay within the Isa limit of £20,000 per tax year.

The changes should make it easier to choose the best Isas for you — for example, you could hold both an easy-access and a fixed-rate Isa — and snap up attractive deals.

Existing rules say you can only pay into one cash Isa with your current year’s allowance.

Hopefully the changes will trigger more competition among providers to offer better rates.

However, I contacted all the big savings providers, and some say they might not let customers open more than one Isa by the deadline. 

They tell me their hands are tied as they are still waiting for clarity from HM Revenue & Customs on how the rules should be applied.

The draft rules, published just two weeks ago according to insiders, have not been made public.

Several providers also stress that it is up to them if they offer the new flexibility. The rules are not mandatory.

I’m told some could decide not to offer both fixed-rate and easy-access Isas. Others may not let you open more than one with them.

The rules should also mean less form-filling. Currently if you have not contributed to your easy-access cash Isa with the same provider for a tax year, you have to fill in a new form to revalidate it. That rule, too, is going.

However, some providers could still ask you to complete a new application form.

Also to go is the rule that all your cash must be moved if you transfer an Isa opened in the existing tax year.

From the next tax year you can move as much money as you like.

Ask your new provider to arrange the transfer so that your cash doesn’t lose its tax-free status.

A transfer can take up to 15 working days but the industry has committed to arranging 85 per cent in just seven working days.