According to Moneyfacts.co.uk, the Bank of England has admitted that they are concerned about the rise in inflation, which is currently at 3.4%, well above the government’s 2% target.

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.

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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.”

Just 5 per cent of those aged 50 plus know what the new Isa limits being introduced on 6 October 2009 will be, according to a Saga study.

Isa limits are being increased to £10,200 for those aged 50 plus from next month but research conducted by Saga showed 54 per cent have no idea what the new limits will be.

A further two fifths (41 per cent) know the limit is increasing but did not know by how much.

But the research did highlight two fifths (39 per cent) are keen to top up their Isas following the change.

Andrew Goodsell, chief executive of Saga Group, said: “Having access to a larger tax free savings and investment allowance will help the over 50s plan their retirement income more efficiently and we do urge people to look out for competitive rates to ensure they invest their money wisely.”

At 1 Stop Financial Services we can help people look at their allownaces and make sure they are making the most of the changes in the ISA limits.