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National Savings & Investments (NS&I) has today launched new issues of its fixed-term British Savings Bonds with reduced interest rates across its 1, 2, 3 and 5-year Guaranteed Growth, and Guaranteed Income Bonds.

The interest rate on its one-year option has been reduced to 4.07 per cent (annual equivalent Rate) from 4.20 per cent. Meanwhile, the interest rate on its two-year option is now 3.98 per cent, down from 4.10 per cent. Its three-year bond now has a 4.02 per cent interest rate while its five-year one has a 4.05 per cent interest rate. Previously, these offered interest rates of 4.16 per cent and 4.15 per cent respectively.

NS&I said the change would help it meet its net financing target, while balancing the interests of taxpayers and savers, as well as the wider financial services sector. At the November Budget, its 2025-2026 target was increased to £13bn from the £12bn set at the 2025 Spring Statement. 

It had been hoped that the increased target would reduce the likelihood of further NS&I cuts. However, a Bank of England rate cut in December has applied further downward pressure on savings rates.

Rank Group (RNK) chief executive John O’Reilly will step down on 29 January after eight years at the helm, though he will stay on to support the business until the end of the 2025/26 financial year.

Finance chief Richard Harris, a board member since May 2022, has been named interim CEO while a formal search process to identify a permanent replacement gets under way. Harris joined Rank from Foxtons (FOXT), where he was CFO, and previously held senior roles at Laird and Marks and Spencer (MKS).

O’Reilly’s exit comes during a difficult spell for the casino operator. Just before Christmas, the company revealed its Spanish business had lost €7.1mn (£6.2mn) due to payment fraud, resulting in an internal probe. Law enforcement has opened an investigation, but Peel Hunt analysts do not expect any of the lost funds to be recovered.

More broadly, it has been a bruising few months for the gambling sector after November’s Budget nearly doubled digital gaming duties. Rank has warned the tax changes could knock around £40mn off operating profits this year, before any mitigating actions are considered. Interim results are due on 29 January.

Prudential (PRU) said it would buy up to $1.2bn (£886mn) worth of its shares throughout 2026, having just completed another $2bn buyback programme.

The bank’s move is part of a push to return up to $5bn to shareholders over the 2024-2027 period, before returning the $1.4bn net proceeds from last month’s initial public offering of ICICI Prudential Asset Management Company (IMAMC) on two Indian stock exchanges.

The new buyback will comprise $500mn of recurring capital returns and $700mn of net proceeds from the IMAMC IPO. The remaining proceeds from the IMAMC listing will be returned to shareholders during 2027.

“The significant growth opportunities ahead of us have not changed and we remain firmly focused on creating long-term shareholder value through high quality, sustainable growth, and consistent delivery of shareholder returns,” said chief executive Anil Wadhwani.

Shares rose 1 per cent to 1,191p in early trading, having soared more than 86 per cent over the past year.