Al Rayan Bank is the institution that proved Islamic banking could work in Britain. Founded in 2004 as Islamic Bank of Britain, majority owned today by Masraf Al Rayan of Qatar, headquartered in Birmingham, it has run a wholly Islamic balance sheet for over two decades. It is also, and our coverage will not soften this, no longer a full-service retail bank: current accounts and retail Home Purchase Plans are closed to new customers, and the business has pivoted decisively toward savings deposits and large commercial property finance. Judged for what it now is rather than what it was, Al Rayan remains one of the two or three most useful providers in UK halal finance. All details verified August 6, 2026.
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The savings shelf: the reason to be here
| Product | Rate | Minimum | Profit |
|---|---|---|---|
| 12 Month Fixed Term Deposit | 4.73% expected | 10,000 GBP (100,000 GBP business) | Quarterly or reinvested to maturity |
| 24 Month Fixed Term Deposit | 4.43% expected | 10,000 GBP | Quarterly or reinvested to maturity |
| 36 Month Fixed Term Deposit (EACI) | 4.55% expected | 10,000 GBP | Reinvested, paid at maturity |
| Everyday Saver (Issue 3) | 2.75% (0.05% below 10,000 GBP) | 10,000 GBP | Monthly |
| Wakala Treasury Deposit | Negotiated per deposit | 250,000 GBP | At maturity |
The fixed terms are the star: 4.73% at one year led the licensed Islamic field at our crawl date, and the bank's fixed terms have repeatedly topped mainstream UK best-buy tables against conventional competition. The curve has a quirk worth exploiting: the 36-month deposit, branded with the Educate A Child International charity partnership, paid 4.55%, more than the 24-month at 4.43%. The Everyday Saver's 10,000 GBP threshold is the shelf's biggest weakness; below it you earn 0.05%, and smaller savers should start at Gatehouse instead. Since there are no new current accounts, everything runs on nominated external accounts through Al Rayan's digital banking.
Shariah governance: the strongest paper trail in the market
Al Rayan's Sharia Supervisory Committee comprises Sheikh Dr. Waleed Bin Hadi (Chairman), Sheikh Dr. Nizam Yaqoobi (Vice-Chairman) and Mufti Abdul Qadir Barkatullah, per the FY2025 annual report. Scanned fatwa certificates are published per product, including dedicated certificates for the Wakala Treasury Deposit, and the committee's signed annual report confirms profit allocation followed approved bases with non-compliant earnings donated to charity. The honest caveat from our review: the certificates are image scans, and some predate current product issues. Even so, no UK competitor publishes more per-product Shariah evidence, and the bank states it has always paid at least its advertised expected profit rate. For how this governance model compares across the market, see our regulation explainer.
What closed, and what it means for you
The retail current account: closed to new customers, ending the era of Al Rayan as a primary bank; the remaining options are mapped in our current accounts guide. The retail Home Purchase Plan: also closed. Home finance survives only as Premier Home Finance, a negotiated product for high-net-worth and non-resident clients in England and Wales, built on Commodity Murabaha (Tawarruq) rather than the diminishing Musharaka the bank pioneered in 2006, with no published rates and no early settlement fees. Mainstream buyers should look to Gatehouse's published Home Purchase Plan range via our home financing hub. The strategic engine now is commercial property finance: 2.5 million to 32 million GBP tickets, over 2 billion GBP written in FY2025, total assets past 3 billion GBP, a record year.
Opening and running an account
The customer journey is deliberately simple now. You register through Al Rayan's Digital Banking app or desktop portal; because the bank no longer opens retail current accounts, every savings account funds from and pays away to a nominated external current account. Choose the Everyday Saver for instant access money (10,000 GBP minimum to earn the 2.75%), or fix for one, two or three years, with profit paid quarterly or reinvested to maturity. Treasurers and charities above 250,000 GBP negotiate their Wakala deposit rate per placement, with a dedicated fatwa certificate covering the product. Premier home finance clients and commercial property investors work through relationship managers, with rate, finance-to-value and fees agreed case by case and no early settlement fees on either product. Expected profit arrives on schedule, and the compliance layer runs annually behind it: the committee's signed report confirms allocations followed approved bases, with any non-compliant earnings donated to charity.
How it compares to the rest of the field
Against HBZ Sirat, Al Rayan lost the one-year rate race at our verification, 4.73% against the eDeposit's 4.81%, but wins on governance evidence: named scholars and per-product fatwas against AAOIFI standards with unnamed scholars. Against BLME, Al Rayan offers app-based digital servicing where BLME runs on correspondence, but BLME owns everything beyond three years. Against Gatehouse, Al Rayan wins on one-to-three-year rates and loses on everything else: minimums, ISAs, home finance, accessibility. The full head-to-head with Gatehouse is in our dedicated comparison.
Safety and scale
PRA-authorised and FCA/PRA regulated, with FSCS protection up to the 120,000 GBP limit effective December 2025. Qatari institutional backing through Masraf Al Rayan, twenty years of UK operating history, and record FY2025 profitability driven by the commercial book. The usual per-licence caution applies to large savers: Al Rayan is one licence, so balances above 120,000 GBP belong partly elsewhere; our FSCS guide shows how to spread across Gatehouse, BLME and others.
Who should and should not use Al Rayan
- Use it: savers with 10,000 GBP+ lump sums wanting the strongest one-year Islamic rate (4.73%) with published fatwa certificates and FSCS cover.
- Use it: three-year savers; the 4.55% EACI deposit out-paid the two-year at our verification.
- Use it: treasurers, charities and HNW individuals placing 250,000 GBP+ in the named-contract Wakala Treasury Deposit.
- Skip it: anyone under 10,000 GBP; the Everyday Saver's sub-threshold rate is 0.05% and Gatehouse opens at 1 GBP.
- Skip it: anyone needing a current account, an ISA or published home finance; those live at HBZ Sirat, Gatehouse and Gatehouse respectively.
Frequently asked questions
Is Al Rayan Bank safe?
It is a PRA-authorised UK bank with FSCS protection up to 120,000 GBP on eligible deposits, two decades of history, majority ownership by Masraf Al Rayan of Qatar, and record FY2025 results. Deposit safety at Al Rayan is the same statutory question as at any UK bank, and the answer is the same.
What contract are the fixed term deposits based on?
The retail fixed term pages do not name the contract; the bank publishes fatwa certificates per product and names Wakala explicitly on the 250,000 GBP treasury deposit. If the contract name matters to you, request it in writing before funding, and see our deposit structures guide for what the names mean.
Compare providers in your state
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
Can I still get an Al Rayan home purchase plan?
Not the retail product; it is closed to new customers. What exists is negotiated Premier Home Finance for HNW and non-resident clients, Tawarruq-based with no published pricing. For published-rate Islamic home finance, Gatehouse is the reference point, and get matched if you want help mapping options.