Inflation is at a ten year high – running at 3.3% in May 2008. Follow our top tips for beating inflation with our money saving tips and advice.

Inflation is at a ten year high – running at 3.3% in May 2008. The rising cost of items such as foodstuffs, oil and utility charge increases globally, combined with increased pressures on finances in the wake of the credit crunch means that what money we have in our pockets is not going as far as it did in the past.

But there are ways that you can save money and pack some pounds back into your wallet. Follow these top tips to protect yourself from inflation.

Find your Money in Lost Accounts

With the plethora of accounts available, from current accounts, savings accounts, pensions, ISAs and investment funds, it’s easy to lose track of all your accounts as the years go by. Sometimes all it takes is a change of address to lose contact with your account – and more importantly, your money. In fact, a new report from Lloyd’s TSB claims that it owes a staggering £69 million to customers who have lost touch with their accounts. Now the bank has launched a campaign to reunite owners with their forgotten money.

Since March 2007 Halifax has been successful in their bid to locate customers with dormant accounts. During the campaign over 5,000 Halifax customers have apparently received on average over £2,500 each.

The British Bankers' Association (BBA) can help you trace your dormant bank account. This free service applies to every bank in the UK and is covered by The Banking Code. If you think you or a loved one may be entitled to claim some money back find out more at: www.mylostaccount.org.uk

Shop Around for a Better Deal

We’ve said it before and we’ll say it again: Shop Around and then Shop Around some more when it comes to choosing financial products. Everything from credit cards to loans, current accounts to motor insurance – the more research you do and the more you look at what prices are out there, the more you are likely to save. Do not put your trust in one bank and simply assume that they will give you the best deal.

Research from the online bank Intelligent Finance estimates that personal loan borrowers across the UK lose over £1bn a year by saddling themselves with uncompetitive and inflexible loans.

"People’s failure to shop around creates a bonanza for big high street banks,” says Grenville Turner, Chief Executive of Intelligent Finance. “It allows them to get away with offering less competitive products than they would if customers were just a little more astute. People need to be less accepting and a little more questioning when choosing their financial products."

Lloyds TSB research claims that only one in ten Brits have switched their current account to get a better rate of interest, while just a fifth has shopped around for a better deal on their savings. And just 8 per cent have bothered to look for a better deal on their home loan.

The internet can be a huge help when it comes to shopping around for a better deal, even if it’s just for your initial research to get an idea of the market – it’s quick, easy and allows you to compare a huge number of options to make sure you get a competitive deal.

Compare the Market Now and Save

Compare Life Insurance now to Save

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Exchange Money before you Go on Holiday

In might not seem like much of a saving, especially when you are about to jet off on holiday and relax, but according to a new report Brits could get 10 percent more for their money by arranging their foreign exchange in the UK, before heading on their summer holidays.

The study by Sainsbury's Travel Money claims 1 in 5 adults in the UK wait until they are at the airport or holiday resort before exchanging their pennies into the correct currency. This means around 9.5 million UK tourists are literally throwing their money away by not arranging their foreign exchange before heading on their visits abroad.

The problem is that airports commonly charge commission and do not give their customers the best exchange rates. On the other side those who take their plastic abroad are likely to face overseas charges and poor exchange rates also. Convenient it may be, but if you are feeling the strain in your wallet then exchanging your money beforehand could offer you big savings.

Another money saving tip for those looking to holiday this summer is to take a UK break, or, thanks to the good exchange rate, head to the US. For more travel news and deals visit: www.travelconnect.co.uk

Pension Planning: Delay Pension Contributions

This might sound counter-intuitive but it can be a valuable financial planning tactic in certain circumstances. There is a general misconception that retirement planning means paying money into a pension. A pension is simply a tax-advantaged investment wrapper. Indeed, for tax efficiency and flexibility, it is often best to hold a mixture of pensions, ISAs, cash and other investments at retirement.

Pension contributions attract tax-relief at your marginal rate but are then taxed when you draw benefits. For higher rate taxpayers, a £60 net pension contribution will be ‘grossed up’ to £100 with the benefit of 40% tax relief. For higher rate taxpayers this actually means an immediate 66% enhancement on your investment.

For those who do not pay higher rate tax, there is an advantage in making any additional savings into an ISA. Like a pension, the money can be invested into equities which, over the longer term should outperform cash and fixed interest assets, but at retirement, the fund can be converted to fixed interest and any income would be tax-free.

If you are a basic rate taxpayer now but feel that you are likely to become a higher rate taxpayer in the relatively near future, why not consider delaying contributions until you can obtain higher rate tax relief.

Open a SIPP for Tax Efficient Savings

Self Invested Personal Pensions (SIPPs) have been one of the success stories of pension planning in the last decade. Matt Ward, from financial research company Defaqto believes that "their ability to facilitate pensions savings, consolidation and income requirements with access to a broad range of investment options will continue to meet the needs of IFAs and clients for many years to come,” he says.

“The fact that they are forming a key component within adviser platforms also ensures that they are embedded into the future of distribution in the UK.”

If you are a higher rate tax payer, opening a SIPP offers excellent tax breaks and a flexible way to save for retirement without suffering too much from inflationary pressure. There are two basic ways you can start a SIPP: new contributions (such as monthly payments and one off lump sums) which attract tax relief at up to 40%; while transfers from other pensions allow investors to move away from outdated pension arrangements with limited investment options and poor customer service. Since April 2006 almost everyone is eligible.

To download your free guide to SIPPs and find out more, Click Here.