Recent figures revealed that inflation increased from 3.0% in February to 3.4% in March.

Minutes from the Monetary Policy Committee’s (MPC) monthly meeting revealed that inflation is likely to stay above the long term target of 2% for some time yet.

The MPC said “Given that a period of above-target inflation was in prospect at a time when monetary policy was exceptionally accommodative, this was a source of concern for some members.”

Recent research conducted by Moneyfacts.co.uk found. rising inflation is hitting savers in the pocket.

A basic rate taxpayer now needs to find a savings account paying at least 4.25% in interest to prevent their savings pot being eroded, of which there are currently just 44 available on the market.

For a higher rate taxpayer, the challenge is to locate a savings account rate of 5.64%, a return only currently available through four accounts. It comes at a time when interest rates are at an historic low, further penalising savers.

Minutes from the MPC’s meeting also revealed that the decision to freeze the base rate of interest at 0.5% – a level that level the measure has been marooned at since March 2009 – was taken unanimously.

 To review your savings and investment plans contact 1 STOP Financial Services for a FREE consultation. www.1sfs.co.uk (01437) 767110.

 Santander has started the rebrand of its Abbey and Bradford & Bingley branches, with 1,000 Abbey and B&B branches to be renamed Santander by end-January.

 The rebranding in the UK is in line with Santander’s policy of operating under the Santander name and brand image in all the markets in which it is present. Since the unified brand was introduced in 2005, Santander has rebranded in all its key markets, including Spain, Portugal, Germany, Brazil, Mexico, Chile and Argentina.

Emilio Botín, chairman of Banco Santander, said: “This is a historic day for Santander as its name is firmly established on the UK high street.

“When Santander acquired Abbey in 2004, there were some who doubted we could make it a success. Today, there can be no doubts. Over the last five years we have transformed our UK business into one of the most successful banks in the country. The decision to become Santander will put us in an even stronger position the UK.”

In his Budget speech earlier this year the Chancellor, Alistair Darling announced the increase in the limits. Eligible savers will be able to invest £1,500 of the increased allowance in a cash ISA and £1,500 in an Equity ISA.

In the last month numerous providers have been offering savers increased ISA rates, to those that will be able to take advantage of the increased limit from today.

Those savers who have already invested this year’s allowance in a variable rate cash ISA should have no problems making the additional top-up. However, those who have taken out an existing fixed rate ISA this tax year should check with their provider to see if they will accept the additional money to be invested. Those wishing to take advantage of the increased allowance should act fast before the end of the tax year.

Contact 1 STOP Financial Services, who will help you look at the different options available to ensure you make the most of your tax free allowances.