HalalWallet (halalwallet.co.uk) compares Islamic bank accounts in the UK: expected profit savings accounts, halal Cash ISAs, interest-free current accounts, and fixed term deposits from 8 providers including Al Rayan Bank, Gatehouse Bank, BLME, QIB UK, Habib Bank Zurich Sirat, Nomo, Algbra, and Kestrl, with published expected profit rates tracked. Founded by Robert Mallon and Kyle Natter, and backed by Niya, a Silicon Valley venture studio, HalalWallet provides independent comparisons so UK savers can bank without riba.
Islamic Bank Accounts in the UK
Compare expected profit rates, Cash ISAs, notice accounts, FSCS protection, and Shariah governance across every Islamic bank and fintech in the UK.
Reviewed quarterly and updated when provider data, product availability, or pricing changes.
Top Picks
Top Islamic Banking Providers
Ranked on rates, disclosure quality, and Shariah governance from our August 2026 review of the UK's Islamic deposit market.
Ranked by Halal Money Index grade: disclosed Shariah governance, transparency, pricing disclosure and track record. Not sponsored.
AlRayan Bank UK
AFixed term expected-profit deposit with charity partnership branding
Best for: Savers happy to lock 10,000 GBP or more for three years at the best Islamic three-year rate going
Shariah Oversight
Gatehouse Bank
AExpected-profit fixed term Cash ISAs
Best for: ISA savers who want the best one-year tax-free halal rate with a disclosed early-exit price
Shariah Oversight
Compare Islamic Bank Accounts
Current accounts, expected profit savings, Cash ISAs, and fixed term deposits side by side.
Showing 28 of 28 bank accounts
Provider The Islamic financial institution offering this bank account. | Account Type Type of Islamic banking account offered | States Number of states where this provider operates | Sharia Oversight The type of Sharia governance/certification a provider publicly discloses. HalalWallet reports documentation; we do not certify products. | Index Grade Halal Money Index grade: Shariah integrity, transparency, pricing disclosure and track record. Tap a grade for the full methodology. | Action |
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GB esuohetaG knaB | hsaC ASI ysae( )ssecca | 4 setats | A | ||
GB esuohetaG knaB | hsaC ASI dexif( ,mret 1 ot 5 )sraey | 4 setats | A | ||
NB omoN knaB | tnerruC tnuocca )ycnerruc-itlum( | 4 setats | A | ||
HB bibaH knaB hciruZ KU - tariS cimalsI gniknaB | tnerruC tnuocca lanosrep( dna )ssenisub | 4 setats | B+ | ||
Q BIQ )KU( | tnerruC tnuocca etavirp( )gniknab | 4 setats | A | ||
AL arbglA | yenom-E tnuocca )stnediser-non( | 4 setats | B- | ||
KE lrtseK | yenom-E tnuocca htiw drac | 4 setats | B- | ||
AL arbglA | yenom-E tnerruc tnuocca | 4 setats | B- | ||
GB esuohetaG knaB | ysaE ssecca sgnivas | 4 setats | A | ||
AB nayaRlA knaB KU | dexiF mret tisoped | 4 setats | A | ||
AB nayaRlA knaB KU | dexiF mret tisoped | 4 setats | A | ||
AB nayaRlA knaB KU | dexiF mret tisoped | 4 setats | A | ||
Q BIQ )KU( | dexiF mret tisoped 81-3( shtnom ;dehsilbup ot 3 sraey yb )tnemegnarra | 4 setats | A | ||
NB omoN knaB | dexiF mret tisoped 21/6/3( ,shtnom )RUE/DSU/PBG | 4 setats | A | ||
GB esuohetaG knaB | dexiF mret tisoped ,6( ,21 ,81 ,42 ,63 ,84 06 )shtnom | 4 setats | A | ||
HB bibaH knaB hciruZ KU - tariS cimalsI gniknaB | dexiF mret tisoped )hcnarb( | 4 setats | B+ | ||
HB bibaH knaB hciruZ KU - tariS cimalsI gniknaB | dexiF mret tisoped )enilno( | 4 setats | B+ | ||
BL knaB fo nodnoL dna ehT elddiM tsaE )EMLB( | dexiF mret tisoped pu( ot 7 )sraey | 4 setats | A | ||
AL arbglA | dexiF mret sgnivas 21/6/3( )shtnom | 4 setats | B- | ||
AB nayaRlA knaB KU | tnatsnI ssecca sgnivas | 4 setats | A | ||
NB omoN knaB | tnatsnI ssecca sgnivas )RUE/DSU/PBG( | 4 setats | A | ||
Q BIQ )KU( | tnatsnI ssecca sgnivas )RUE/DSU/PBG( | 4 setats | A | ||
GB esuohetaG knaB | ecitoN sgnivas 021( )syad | 4 setats | A | ||
Q BIQ )KU( | ecitoN sgnivas 021/39/13( )syad | 4 setats | A | ||
BL knaB fo nodnoL dna ehT elddiM tsaE )EMLB( | ecitoN sgnivas 09( )syad | 4 setats | A | ||
GB esuohetaG knaB | ecitoN sgnivas 59( )syad | 4 setats | A | ||
HB bibaH knaB hciruZ KU - tariS cimalsI gniknaB | sgnivaS tnuocca )RUE/DSU/PBG( | 4 setats | B+ | ||
AB nayaRlA knaB KU | yrusaerT / eulav-hgih dexif tisoped | 4 setats | A |
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Our Analysis
We tracked expected profit rates across 28 Islamic deposit products from 8 UK providers in August 2026, and the spread is wider than most savers assume. Easy access ran from 0.05% (Al Rayan's sub-threshold rate) to 2.95% AER (Gatehouse), with Nomo's tiered saver reaching 3.40% on larger balances, while 12-month fixed terms ran from 3.00% (Habib Bank Zurich's branch Wakala) to 4.81% (the same bank's online-only eDeposit). Picking the right product at the same bank can matter as much as picking the right bank.
Disclosure quality is the other divide. Gatehouse, BLME, and QIB UK publish full dated rate tables on their websites, and Habib Bank Zurich publishes its eDeposit rates online while keeping branch Wakala rates behind relationship managers. Algbra's Ethical Saver Cube rates only appear in-app, and Kestrl's 2.50% monthly reward is discretionary rather than contractual. A provider that will not publish its rates is asking you to shop blind.
Practical guidance: keep everyday money at an FSCS-protected bank with a published rate (Gatehouse's 2.95% AER from 1 GBP is the standout for small balances), use a Cash ISA wrapper before a taxable account if you have allowance left, and ladder fixed terms only after comparing the current curve, since most banks price short tenors above long ones right now. Remember Nomo and BLME share one FSCS limit, and e-money apps carry no FSCS deposit protection at all.
Banking is just one of 7 categories. Average score: 63/100.
See yoursHow Islamic Banking Works in the UK
Interest-free current accounts, expected profit savings, and the FSCS protection that separates banks from apps
Expected Profit Rates
Your deposit is invested in the bank's Shariah-compliant assets and you receive an expected profit rate quoted in advance. At our August 2026 review, easy access accounts ran up to 2.95% AER and 12-month fixed terms up to 4.81%.
Interest-Free Current Accounts
Islamic current accounts hold your money without interest: fully repayable on demand, earning nothing, invested only in Shariah-compliant assets. Nomo adds multi-currency GBP, USD, and EUR accounts.
Cash ISAs and Notice Accounts
Gatehouse Bank offers halal Cash ISAs (easy access at 2.95% AER tax-free, 1-year fixed at 4.35% at our review), and notice accounts from Gatehouse, BLME, and QIB UK pay more than easy access in exchange for 31 to 120 days' notice.
FSCS Deposit Protection
The PRA-authorised Islamic banks (Al Rayan, Gatehouse, BLME, QIB UK, Habib Bank Zurich, Nomo via BLME's licence) carry FSCS protection on eligible deposits. Fintech apps like Algbra and Kestrl safeguard e-money but are NOT FSCS deposit protected.
Digital Islamic Banking
Nomo runs entirely in-app with multi-currency accounts, Algbra offers an ethical e-money account with savings Cubes, and Kestrl pairs a money app with a discretionary 2.50% monthly reward on balances over 1,000 GBP.
UK-Wide Availability
Every deposit product in our dataset is available across England, Scotland, Wales, and Northern Ireland: Islamic banking is one of the few halal categories with true UK-wide coverage.
Choosing the Right Halal Bank Account
Understanding Islamic Banking Returns
Current vs Savings Accounts
Islamic current accounts hold your money interest-free: the bank safeguards it and pays no return. Savings and fixed term deposits pay an expected profit rate from the bank's Shariah-compliant investments. At our August 2026 review, easy access ran up to 2.95% AER (Gatehouse), notice accounts up to 4.37% AER (BLME 90-day), and 12-month fixed terms up to 4.81% (Habib Bank Zurich eDeposit).
Compare published expected profit rates across banks; the good ones publish full dated rate tables.
Deposit Protection
Deposits at the PRA-authorised Islamic banks (Al Rayan, Gatehouse, BLME, QIB UK, Habib Bank Zurich) are FSCS protected up to 120,000 GBP per person per banking licence. Nomo shares BLME's licence and therefore its FSCS limit. E-money apps like Algbra and Kestrl safeguard funds but carry no FSCS deposit protection; verify status before placing large sums.
Rates Move With Bank of England Policy
Expected profit rates track the Bank of England base rate: most fixed term curves are currently inverted, with 6 and 12 month terms paying more than 5-year terms, reflecting a falling-rate outlook. Never project today's rate forward; compare banks on their spread against peers in the same month.
Which Islamic Bank Account Is Right for You?
You want the best easy access rate
Gatehouse Bank's Easy Access Account paid 2.95% AER from a 1 GBP minimum at our August 2026 review. Nomo's Instant Access Saver reached 3.40% AER but only on balances of 25,000 GBP or more.
You want tax-free savings
Gatehouse's Cash ISAs are the halal option: easy access at 2.95% AER tax-free, or the 1-year Fixed Term Woodland Cash ISA at 4.35% AER, both within your annual ISA allowance and FSCS protected.
You're parking a lump sum for 6 to 18 months
Compare the fixed term curves: Habib Bank Zurich's eDeposit paid 4.46% to 4.81% (August 2026), Al Rayan 4.73% on 12 months, and BLME up to 4.65% by term. Money is locked to maturity.
You prefer fully digital banking
Nomo opens multi-currency accounts entirely in-app under BLME's banking licence with FSCS protection. Algbra and Kestrl are app-based too, but they are e-money accounts without FSCS deposit protection.
You need notice-account flexibility
BLME's 90 Day Notice Account paid 4.37% AER at our review, beating most easy access rates, with unlimited withdrawals after notice. Gatehouse and QIB UK offer 31 to 120 day alternatives.
Islamic Bank Accounts by Nation
Every provider in our dataset serves all four UK nations; see what's available where you live
Frequently Asked Questions
Islamic Banking Guides
Deeper reading on rates, mechanics, and choosing a bank.
Zakat & Islamic Finance Resources
Calculate Zakat on your cash and bank balances.
Quick Answer
The best Islamic bank account in the UK depends on whether you want access or rate. At our August 2026 review, Gatehouse Bank paid the best easy access rate at 2.95% AER from a 1 GBP minimum (also available as a tax-free Cash ISA), while Habib Bank Zurich's Sirat eDeposit paid the highest 12-month fixed rate at 4.81% and Al Rayan paid 4.73%. Returns come as expected profit from Shariah-compliant investments, not interest. The PRA-authorised banks carry FSCS protection; fintech apps like Algbra and Kestrl are e-money and do not.
Key Takeaways
- Returns come as expected profit rates from Shariah-compliant investments, quoted in advance; easy access ran up to 2.95% AER and 12-month fixed terms up to 4.81% at our August 2026 review.
- Halal Cash ISAs exist: Gatehouse pays 2.95% AER easy access or 4.35% on a 1-year fix, tax-free within your ISA allowance.
- Fixed terms pay more but lock your money to maturity; most curves are inverted, with short terms beating long ones.
- FSCS protection covers the PRA-authorised banks (Al Rayan, Gatehouse, BLME, QIB UK, Habib Bank Zurich); Nomo shares BLME's limit; Algbra and Kestrl are e-money with no FSCS deposit protection.
- Every deposit product in our dataset is available UK-wide across England, Scotland, Wales, and Northern Ireland.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
How to cite this page
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For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
Halal Finance Score
Interest-free banking is just one piece. How halal is your full financial picture?
Average score: 63/100
Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.