Yes. Al Rayan Bank PLC is a UK-incorporated bank authorised by the Prudential Regulation Authority and regulated by the PRA and the FCA under firm reference 229148, and eligible deposits are protected by the FSCS up to £120,000 per person. It opened in Birmingham in 2004 as Islamic Bank of Britain, was bought by Masraf Al Rayan of Qatar in 2014 and renamed that December; the parent now trades as AlRayan Bank QPSC. Its 2025 accounts show £23.59 million pre-tax profit, £3.13 billion of assets and a 15.41% core capital ratio. The one blemish is a £4,023,600 FCA fine in January 2023 for anti-money laundering failures. See the UK Islamic bank accounts hub for how it compares.
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FSCS cover and the register entries
The FSCS website states that if a UK-authorised bank fails it automatically compensates eligible depositors up to £120,000 per person, per banking licence, a limit that rose from the previous level on 1 December 2025. Joint accounts are covered up to £120,000 per account holder. Al Rayan's own savings page repeats the £120,000 figure, and the bank's regulatory information page gives the PRA authorisation, the FCA and PRA regulation, firm reference 229148 and Companies House number 04483430. The registered office shown is 4 Stratford Place, London W1C 1AT.
The FSCS point that matters for Islamic savers is that profit-share deposits are covered on exactly the same terms as interest-bearing ones. The scheme protects the balance, not the mechanism by which it grows. One practical limit: the £120,000 cap applies across every account you hold under the same banking licence, so a saver with a fixed term deposit, a notice account and a current account at Al Rayan is protected to £120,000 in total, not per account. Our guide to FSCS protection at Islamic banks covers the mechanics, including how aggregator platforms affect the limit.
| Check | What the official source says | Where |
|---|---|---|
| Deposit protection | Up to £120,000 per eligible person per bank, from 1 December 2025 | fscs.org.uk |
| Authorisation | Authorised by the PRA, regulated by the FCA and PRA, FRN 229148 | alrayanbank.co.uk regulatory information |
| Legal entity | Al Rayan Bank PLC, Companies House 04483430, registered in England and Wales | alrayanbank.co.uk |
| Enforcement | £4,023,600 fine for AML control failures, 11 January 2023 | fca.org.uk |
| Credit rating | Aa3(cr) counterparty risk assessment from Moody's, per the bank | alrayanbank.co.uk |
Who owns Al Rayan Bank and how strong is its capital
Al Rayan Bank UK is the UK subsidiary of AlRayan Bank QPSC, formerly Masraf Al Rayan, a Qatar-based Islamic bank licensed by Qatar Central Bank and incorporated in January 2006, which the bank describes as one of the largest in Qatar. The heritage page records the sequence: Masraf Al Rayan announced its intention to buy 70% of majority shareholder QIIB's stake with the Government of the State of Qatar taking the other 30%, completed the acquisition in January 2014, and the bank renamed from Islamic Bank of Britain to Al Rayan Bank in December 2014. In May 2025 the UK bank rebranded again as AlRayan Bank to align with its parent.
The annual report for the year ended 31 December 2025 shows profit before tax of £23.59 million against £23.47 million in 2024, operating income of £64.14 million, total assets of £3.13 billion, a Common Equity Tier 1 ratio of 15.41% (16.03% in 2024) and a liquidity coverage ratio of 598% with £314 million of liquidity headroom. A CET1 ratio above 15% and an LCR several times the 100% regulatory minimum are comfortable numbers for a bank of this size. The report also describes a planned reduction of the legacy retail portfolio, which is the strategic shift covered next.
The FCA fine in 2023 and what it means today
On 11 January 2023 the FCA fined Al Rayan Bank PLC £4,023,600 for failing to put in place adequate anti-money laundering controls, with the regulator noting a lack of proper staff training on how to handle large deposits. The bank did not dispute the findings and settled, qualifying for a 30% discount from a penalty that would otherwise have been £5,748,000. The FCA published a final notice, which remains on its website.
For a depositor, the distinction is that this was a controls failure around who could bring money in, not a solvency or conduct-to-customers finding, and it dates from a period the bank has since restructured. It does not affect FSCS cover. It is fair to hold the bank to a higher standard on financial crime controls as a result, and worth knowing if you are asked for more documentation than a high street bank would request when opening a large account. Our explainer on how UK Islamic banks are regulated sets the fine in the wider supervisory context.
Islamic Bank of Britain to AlRayan: what changed for customers
Islamic Bank of Britain opened in 2004 as the first standalone Sharia compliant retail bank in Britain, headquartered in Birmingham with a branch network and, from the mid-2000s, online banking. The 2014 acquisition brought Qatari capital and a growth strategy; the bank reported its first profit, passed £1 billion in assets, won Global Finance's best Islamic bank award and opened a private banking branch in Knightsbridge. Its Moody's rating, which the bank describes as the first public rating for a UK Islamic bank, followed.
The current shape is different. The bank's own description on 22 September 2026 is that it specialises in Structured Real Estate and Premier Banking and offers a limited range of savings accounts through its Digital Banking platform and third-party savings aggregation platforms. The site lists fixed term and instant access savings, a Premier Banking tier with current accounts, savings and home finance, and a section for existing home purchase plan and buy-to-let customers. In April 2024 it opened a 10,000 square foot London head office. In practice this means an ordinary saver deals with Al Rayan through its app or an aggregator, a mass-market current account is no longer the proposition, and new home finance sits under Premier Banking. The Al Rayan provider profile tracks the live product list.
- 2004: Islamic Bank of Britain opens, headquartered in Birmingham.
- January 2014: Masraf Al Rayan completes its acquisition; December 2014: renamed Al Rayan Bank PLC.
- 2015: post-tax profit of £10.3 million, up from £1.2 million in 2014, per the heritage page.
- January 2023: FCA fine of £4,023,600 for AML control failures.
- April 2024: new London head office; May 2025: rebrand to AlRayan Bank in line with AlRayan Bank QPSC.
- 1 December 2025: FSCS deposit limit rises to £120,000, reflected on Al Rayan's savings page.
What the Financial Ombudsman data shows
The Financial Ombudsman Service publishes business-level complaints data twice a year and quarterly product-level data, with the most recent releases covering the period to June 2026. It also publishes individual decisions. We read the business complaints data pages and a sample of published decisions involving Al Rayan on 22 September 2026. The decisions we saw concerned day-to-day service matters such as blocked cards, account closures and delays on ISA transfers, which is the pattern you would expect from a bank that has tightened financial crime controls after an FCA fine. We did not find decisions alleging unpaid profit on savings or lost deposits.
That is a qualitative reading, not a statistic. To check for yourself, open the Ombudsman's half-yearly business complaints data, search for Al Rayan Bank PLC, and compare the number of new cases and the uphold rate with other savings banks of similar size. If the bank does not appear in a given half-year table it is because it fell below the publication threshold for that period.
What expected profit means for your capital
Al Rayan's savings accounts quote an expected profit rate rather than an interest rate. Its guide to expected profit explains that deposits are placed in Sharia compliant investments, that the bank monitors them daily to ensure they will deliver the quoted rate, and that since it was founded in 2004 it has always paid the rate of profit it quoted and on numerous occasions paid more. The legal position is that the rate is a target, not a promise; the practical record, by the bank's own account, is that the target has been met every time for over twenty years.
Two protections sit behind that record. The FSCS covers your balance if the bank itself fails. And the bank can, under its Sharia structure, choose to forgo part of its own share of profit to meet the expected rate, which is why the quoted figure has held. What is not guaranteed is the rate on a variable account between reviews, so a saver comparing products should look at the fixed term deposit terms rather than the headline. Our Al Rayan savings guide and the Islamic fixed term deposit ladder show how the accounts fit together, and the Al Rayan versus Gatehouse comparison sets it against its closest rival.
Is Al Rayan Bank halal?
The bank operates under a Sharia Supervisory Committee whose report appears in the annual report, and it structures savings as profit-sharing deposits and home finance as home purchase plans rather than loans. Its products are built not to pay or charge interest. The committee's members are named in the annual report rather than on a standalone page, so read the report of the Sharia Supervisory Committee in the 2025 accounts if you want the names and the scope of their review. For most UK Muslims the relevant point is that this is the oldest and largest Sharia compliant bank in Britain and has published a Sharia committee report every year since it opened.
Verdict for a saver, a home buyer and a current account seeker
A saver can proceed. Keep each person's total at Al Rayan at or below £120,000 to stay inside FSCS cover, favour fixed term products for certainty, and treat the expected profit rate as a target that has been met for over twenty years rather than a guarantee. A home buyer should go in knowing that new home finance now sits under Premier Banking and that the mainstream home purchase plan book is in run-off; get a written quote and compare it with the providers on our halal banking guide before committing. A current account seeker is better served elsewhere, because a mass-market current account is no longer what the bank is built around. Facts checked against alrayanbank.co.uk, fscs.org.uk, fca.org.uk, financial-ombudsman.org.uk on 22 September 2026.
Frequently asked questions
Is my money protected by the FSCS at Al Rayan Bank?
Yes. Al Rayan Bank PLC is a UK-authorised bank, and the FSCS protects eligible deposits up to £120,000 per person, per banking licence, a limit that took effect on 1 December 2025. Joint accounts are protected to £120,000 per holder. The cap applies to your combined balances at the bank, not to each account separately.
Who owns Al Rayan Bank?
AlRayan Bank QPSC, formerly Masraf Al Rayan, a Qatar-based Islamic bank licensed by Qatar Central Bank. It acquired Islamic Bank of Britain in January 2014, with the Government of the State of Qatar taking a minority stake in the deal, and the UK bank was renamed Al Rayan Bank in December 2014. In May 2025 it rebranded as AlRayan Bank.
Has Al Rayan Bank been fined by the FCA?
Yes. On 11 January 2023 the FCA fined Al Rayan Bank PLC £4,023,600 for inadequate anti-money laundering controls, including poor staff training on large deposits. The bank accepted the findings and received a 30% settlement discount from a £5,748,000 penalty. The fine concerned financial crime controls and does not affect FSCS deposit protection.
What happened to Islamic Bank of Britain?
It still exists as Al Rayan Bank. Islamic Bank of Britain opened in 2004 in Birmingham, was bought by Masraf Al Rayan of Qatar in 2014 and changed its name to Al Rayan Bank PLC that December. The same legal entity, Companies House number 04483430, now trades as AlRayan Bank and focuses on savings, Premier Banking and structured real estate.
Is the expected profit rate at Al Rayan guaranteed?
No, it is a target rather than a contractual promise, which is what makes it Sharia compliant. Al Rayan states that since 2004 it has always paid the rate it quoted and has sometimes paid more, because it monitors the underlying investments daily. Your capital is separately protected by the FSCS up to £120,000 if the bank fails.
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Is Al Rayan Bank financially strong?
Its accounts for the year ended 31 December 2025 report £23.59 million profit before tax, £3.13 billion of total assets, a Common Equity Tier 1 ratio of 15.41% and a liquidity coverage ratio of 598%. The bank also cites an Aa3(cr) counterparty risk assessment from Moody's. Those are comfortable figures for a bank of its size.
