AlRayan Bank UK 12 Month Fixed Term Deposit
Islamic Bank Accounts in England
AlRayan Bank's flagship one-year fixed term deposit paying an expected profit rate of 4.73% gross p.a. where profit is reinvested and paid on maturity, with the option of quarterly profit payments instead. Minimum deposit 10,000 GBP for personal customers (100,000 GBP for business fixed term deposits); no withdrawals during the fixed term. The bank's 12-month FTD has repeatedly topped UK best-buy tables against conventional banks.
This is the product that made AlRayan a fixture of UK best-buy tables, and at 4.73% it remains the sharpest one-year rate among the licensed UK Islamic banks bar HBZ's 4.81% eDeposit. The mechanics are saver-friendly - choose quarterly income or compounding - and the FSCS badge removes the credit question. The trade-offs are the 10,000 GBP entry, total lock-in, and the theological honesty that 'expected' profit is not a legal guarantee, though the bank's record of always paying it is long. For a pure one-year lump-sum park at an Islamic bank, this or HBZ's eDeposit is the benchmark.
Pros
- Beats the 12-month rates of Gatehouse (4.15%) and Nomo (up to 4.30%) at the crawl date
- Track record of always having paid at least the expected profit rate
- Quarterly profit option for income seekers
- FSCS protected at a wholly Islamic bank
Cons
- 10,000 GBP minimum is high (HBZ Sirat eDeposit starts lower and pays 4.81% at 12 months)
- No access whatsoever during the term
- Expected profit is not contractually guaranteed
- Account opening requires the bank's Digital Banking onboarding first
Open Account
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Product Details
Account Type
Fixed term deposit
Monthly Fee
0 GBP
Min Deposit
10,000 GBP (100,000 GBP for business FTDs)
Structure
Expected profit rate; paid quarterly or reinvested and paid at maturity
AlRayan Bank UK in England
AlRayan Bank UK's Fixed term deposit serves customers in England. Islamic savings in the UK pay an expected profit rate from Shariah-compliant investments rather than interest. There is no monthly maintenance fee on this account. Check the provider's FSCS status: deposits at PRA-authorised banks are FSCS protected, while e-money balances are safeguarded but not FSCS deposit protected. AlRayan Bank UK operates across the UK, so England residents have full access to this product.
Shariah Compliance & Oversight
Sheikh Dr. Waleed Bin Hadi (Chairman), Sheikh Dr. Nizam Yaqoobi (Vice-Chairman) and Mufti Abdul Qadir Barkatullah (Member), per the FY2025 Annual Report and Accounts; scanned fatwa certificates per product at alrayanbank.co.uk/sharia-compliance-certificates (crawled 2026-08-06).
2026-08-06
Why It's Halal
Deposits are invested in Sharia compliant, ethical activities and the return is an expected profit rate approved by the bank's independent Sharia Supervisory Committee rather than contractual interest - AlRayan states it has always paid at least the expected rate since its 2004 founding. The FTD carries a scanned fatwa certificate on the Sharia compliance certificates page, and the SSC's annual report confirms profit allocation followed approved bases. Caveat: the expected rate is not a guarantee as a matter of contract, and the certificate scan predates the current issue. The scholars behind the sign-off are named in the FY2025 accounts: Sheikh Dr. Waleed Bin Hadi (Chairman), Sheikh Dr. Nizam Yaqoobi (Vice-Chairman) and Mufti Abdul Qadir Barkatullah, whose signed annual report confirms profit allocation followed approved bases and that any non-compliant earnings were donated to charity.
Regional Availability
AlRayan Bank UK serves all of the UK
✓ Available nationwide including England
Open Account: AlRayan Bank UK
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NationwideFrequently Asked Questions
What is AlRayan Bank UK 12 Month Fixed Term Deposit?
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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.