Inflation is still tumbling but is still way above the government’s 2% target.

The Consumer Prices Index (CPI) – the official measure of inflation – slipped 0.4% to 4.1% last month as fuel and food costs cheapened.

The CPI fell at its fastest rate for 16 years between September and November mainly pushed along by fuel prices falling by a third since their high in July. The rate stood at 5.2% in September – the highest for many years.

Despite the fall, management of inflation is still outside parameters set by the government and bank of England governor has had to write to the Prime Minister Gordon Brown to account for the situation.

Cash strapped customers at the Halifax who exceed current account borrowing limits may have to pay up to £2 bank charges.

The new Reward current account takes a carrot and stick approach to customers – offering them the same fees on for a £2,000 overdraft as slipping £20 in to the red accidentally.

"The idea of the account is to get rid of confusing interest rates,” said a Halifax spokesman.

Reward takes over from the standard current account and high interest current account from 9 February. Old fee and interest charges will be swept away and offers a £5 credit to customers paying in at least £1,000 a month.

Savers are piling cash to Tesco, which has the most competitive savings rates on the market.

In November, more new savings accounts were opened at the supermarket than in the whole of 2007.

The lure is 6% interest rate on deposits of less than £100,000 the Tesco Internet Saver account. This more than doubles the return of similar accounts from similar high street accounts.