Banks may prevent clients moving to cash Isas: Bowes

The former financial adviser and founder of the Savings Champion service said there was a “concern” that providers would restrict the new transfer privileges to existing customers or only permit a limited size of funds to be moved across.

She said: “Given the lack of real competition over the Isa season, with a lot of the best rates restricted to local building societies, we could see savers facing difficulties in transferring their stocks and shares allowance into a cash allowance.

“The worst-case scenario is that providers drop their rates even further to discourage the flow of funds, or close a lot sooner than planned should they become very popular, but we are more likely to see transfers allowed only up to a certain balance or new transfers forbidden altogether.”

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Meanwhile LV=, Legal & General and Scottish Widows confirmed that they were “looking at all options” to expand their Isa service for clients in light of the changes.

Skipton Building Society was the first Isa provider out of the gates to confirm it would be ‘Nisa-ready’ by July, giving savers the whole month to top up their 2014/2015 Isa allowance.