Fixed term deposits are where UK Islamic banks put their best numbers, and the spread between providers is wide enough to cost you real money. At our August 6, 2026 verification, twelve-month expected profit rates ran from 4.81% down to 3.00%, and the two ends of that range sit inside the same banking group. Here is the whole published market, term by term.
The mechanics first: a fixed term Islamic deposit locks your money to maturity and pays an expected profit rate rather than interest. Under contracts like Wakala, the bank invests as your agent in Shariah compliant assets and pays the expected profit at maturity or on a set schedule. No additions, and usually no withdrawals, once the term starts. FSCS protection up to 120,000 GBP applies at every licensed bank below.
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The published rate grid
| Provider | 6m | 12m | 24m | 36m | 5y+ |
|---|---|---|---|---|---|
| HBZ Sirat eDeposit | 4.46% | 4.81% | 4.10% | 4.05% | 4.00% (5y) |
| Al Rayan Bank | - | 4.73% | 4.43% | 4.55% | - |
| BLME Premier Deposit | headline up to 4.65% (as of 9 Jul 2026); per-term grid not published | terms to 7y | |||
| Gatehouse Woodland Saver | 4.30% | see ISA/site | - | - | 3.80% (5y) |
| QIB (UK) Wakala (as at 26 Mar 2026) | 3.65% | 3.60% | - | - | - |
| HBZ branch Wakala deposit | - | 3.00% | - | - | 3.25% (5y) |
| Nomo (GCC residents only) | yes | up to 4.30% | - | - | - |
Notes on the gaps: BLME publishes only its headline rate online, so the per-term numbers require a quote. Gatehouse's Woodland Saver runs 6, 12, 18, 24, 36, 48 and 60 month terms from 4.30% AER at six months down to 3.80% at five years, from a 1,000 GBP minimum. QIB (UK) also publishes 3.50% at three months, 3.65% at nine months and 3.10% at eighteen, in GBP, USD and EUR, with terms to three years by arrangement.
The one-year race: HBZ Sirat vs Al Rayan
The HBZ Sirat eDeposit at 4.81% was the best published UK Islamic rate at any term at our crawl date, and it won Moneynet's Best Fixed Rate Savings Provider 2026. It opens fully online. The trade-offs: Sirat is an Islamic window inside a conventional bank, governed under AAOIFI standards with the bank's Shariah Advisor and external audit by IFAAS rather than a named scholar board, and the eDeposit has no online servicing after opening.
Al Rayan at 4.73% counters with the strongest Shariah paper trail in the market: a three-scholar Sharia Supervisory Committee (Sheikh Dr. Waleed Bin Hadi chairing, with Sheikh Dr. Nizam Yaqoobi and Mufti Abdul Qadir Barkatullah), scanned fatwa certificates published per product, and a signed annual Shariah report in the accounts. Minimum 10,000 GBP, or 100,000 GBP for business fixed terms. Profit pays quarterly or reinvests to maturity. For 8 basis points, many savers will take the fuller governance.
The same-bank trap: 4.81% online, 3.00% in branch
Habib Bank Zurich prices its own channels absurdly differently. The branch Wakala deposit pays 1.25% at one month rising to just 3.25% at five years, with 3.00% at twelve months, while the same bank's online eDeposit pays 4.81% at twelve months. The branch product still earns its keep for very short terms (one to three months, which nobody else publishes), USD and EUR placements, and negotiated business rates from 10,000 GBP. For a standard GBP term, use the online door or lose nearly two percentage points.
Beyond three years: BLME stands alone
BLME's Premier Deposit runs from 1,000 GBP to 1 million GBP with terms out to seven years, the only five, six and seven year Islamic fixed terms in the UK. Expected profit accrues daily and pays annually, or at maturity on sub-year terms. It is the natural home for savers who think rates are heading down and want duration with FSCS cover; the operational cost is paper-based servicing, since there is no online account view after opening. Fitch rates the bank A+ via its parent, Boubyan Bank of Kuwait.
Two to three years: Al Rayan's odd curve
Al Rayan paid 4.43% at 24 months but 4.55% at 36 months through its Educate A Child International deposit, which carries charity partnership branding but works like a standard fixed term. A higher rate for a longer lock is worth noticing when the two-year sits below it; if you are choosing between them and can stand the extra year, the three-year paid more at our verification. Gatehouse's fixed terms trail at these maturities (3.60% to 3.80% territory on its published range), though its one-year Cash ISA at 4.35% tax-free beats everything here for taxpayers, as our ISA guide explains.
What about Algbra and Nomo?
Algbra's Ethical Saver Cubes are fixed term savings (3, 6 or 12 months) structured as Commodity Murabaha and executed by Standard Chartered, which means funds in a Cube gain FSCS protection even though Algbra itself is an e-money app. The profit rate is fixed and contractual under the Murabaha sale, which is arguably a religious advantage over expected-profit deposits. But the rates appear only in-app, so compare before committing. Nomo pays up to 4.30% on 3, 6 and 12 month terms in GBP, USD and EUR from 5,000 GBP, but only Gulf residents can open it.
Payment schedules and business money
How the profit arrives varies more than the headline rates do. Al Rayan pays quarterly or reinvests to maturity, and its 36-month deposit reinvests profit and pays the lot at the end. BLME calculates daily and pays annually, or at maturity on terms under a year. QIB (UK) pays at maturity under its Wakala terms. If you are living off the profit, the payment frequency matters as much as the rate; if you are compounding, at-maturity payment is fine and sometimes quotes a touch higher. Business savers have a separate door: Al Rayan's business fixed terms start at 100,000 GBP, HBZ negotiates business Wakala rates from 10,000 GBP in branch, and Al Rayan's Wakala Treasury Deposit takes 250,000 GBP and up at rates agreed per deposit, aimed at corporate treasurers and charities.
How to pick your term
- 6 months: HBZ eDeposit at 4.46%, or Gatehouse from 1,000 GBP at 4.30%.
- 12 months: HBZ eDeposit at 4.81% for rate; Al Rayan at 4.73% for published fatwa certificates.
- 24-36 months: Al Rayan, and note its three-year paid more than its two-year.
- Beyond 3 years: BLME only, headline up to 4.65%.
- Taxpayers: check the Gatehouse one-year Cash ISA at 4.35% tax-free first.
Fixed rates reprice frequently, so treat these as a verified snapshot rather than a promise; check live rates via our bank accounts hub before you apply, or get matched for a shortlist.
Frequently asked questions
Can I get my money out early?
Generally no; fixed term Islamic deposits lock to maturity, and BLME states plainly that fixed terms accept no additions or withdrawals. If you might need the money, a notice account like BLME's 90-day at 4.37% AER gives most of the yield with a defined exit path. See our notice account comparison.
Is the profit rate fixed or expected?
On bank deposits it is an expected rate fixed for the term: the number should not move, but it is not a contractual guarantee, because that would amount to riba. Algbra's Murabaha Cubes are the exception; a cost-plus sale produces a genuinely fixed, contractual profit.
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.
Which structure am I actually signing?
QIB (UK) and HBZ name Wakala. Al Rayan publishes fatwa certificates but does not name the contract on its fixed term pages, naming Wakala only on its treasury deposit. Gatehouse and BLME describe the expected profit model without naming the deposit contract. If the contract name matters to you, ask before funding; our deposit structures guide explains what each name means.