Earning interest on savings is ribaInterest — strictly forbidden in Islam. All halal finance products are structured to avoid riba. and therefore not permissible in Islam. But that doesn't mean your money has to sit idle. Halal savings accounts use profit-sharing structures that grow your wealth in a Sharia-compliant way — and the rates are increasingly competitive.
Conventional savings accounts pay interest — you lend your money to the bank and they pay you a fixed rate in return. This is ribaInterest — strictly forbidden in Islam. All halal finance products are structured to avoid riba. and is not permissible under Islamic finance principles.
The most common structure for halal savings in the UK. You provide the capital, the bank invests it in Sharia-compliant activities, and you receive a share of the profits. Instead of a guaranteed interest rate, you receive an Expected Profit Rate (EPRExpected Profit Rate — the halal equivalent of an interest rate, based on actual investment profits.) — a projected return based on the bank's investment activities. In practice, EPRs have been consistently paid and are comparable to conventional savings rates.
You appoint the bank as your agent to invest your money in Sharia-compliant assets. The bank charges a fee for this service and passes the remaining profit to you. Some providers, like Wahed, use this structure for their cash accounts.
An important distinction: the Expected Profit Rate is not guaranteed in the same way a conventional interest rate is. However, in practice, UK Islamic banks have consistently paid their EPRExpected Profit Rate — the halal equivalent of an interest rate, based on actual investment profits. to customers. The difference is largely contractual rather than practical for most savers.
Al Rayan is the market leader for halal savings in the UK, consistently offering some of the highest Expected Profit Rates available. They offer a range of products including easy access, notice accounts, and fixed term deposits. As a fully authorised UK bank, your savings are FSCS protected up to £120,000. Their fixed term products in particular have regularly outperformed equivalent conventional accounts.
Gatehouse Bank offers a strong halal savings range including an easy access account with one of the lowest minimum deposits in the market — starting at just £1. This makes them ideal for British Muslims who are just starting to save or want flexible access to their money. Their fixed term products are also competitive and FSCS protected.
Wahed is primarily an investment platform but also offers a halal cash account using a WakalaAn agency contract — the bank acts as your agent to invest funds on your behalf, charging a fixed fee instead of interest. structure. It's a good option for those who want to keep their savings and investments in one Sharia-compliant place. The minimum investment is low and the platform is accessible via a clean mobile app. Note that Wahed's cash account is not FSCS protected in the same way as a bank deposit — check their current protections before depositing large sums.
| Provider | Expected Profit | Term | Min Deposit | Certification | Apply |
|---|---|---|---|---|---|
| Wahed Invest Halal Cash Account |
★ Best Rate ~4.50% EPRExpected Profit Rate — the halal equivalent of an interest rate, based on actual investment profits. |
Easy Access | £50 | Certified ✓ | Apply → |
| Al Rayan Bank Fixed Term Deposit |
~4.15% EPRExpected Profit Rate — the halal equivalent of an interest rate, based on actual investment profits. | 12–24 months | £5,000 | SSB Certified ✓ | Apply → |
| Gatehouse Bank Easy Access |
~3.25% EPRExpected Profit Rate — the halal equivalent of an interest rate, based on actual investment profits. | Easy Access | £1 | Sharia Board ✓ | Apply → |
⚠️ EPRExpected Profit Rate — the halal equivalent of an interest rate, based on actual investment profits. = Expected Profit Rate, not guaranteed interest. Rates vary. Always verify directly with the provider. Last updated: April 2026.
The halal savings market in the UK has matured considerably. Al Rayan and Gatehouse are both strong choices and FSCS protected — there is no meaningful reason to keep savings in a conventional bank earning ribaInterest — strictly forbidden in Islam. All halal finance products are structured to avoid riba. when these alternatives exist. Start with Gatehouse for easy access savings (no minimum deposit) and Al Rayan for longer-term fixed deposits where returns are highest.
No — unlike a conventional interest rate, the EPRExpected Profit Rate — the halal equivalent of an interest rate, based on actual investment profits. is a projected figure based on the bank's investment activities. In practice, UK Islamic banks have consistently paid their EPRExpected Profit Rate — the halal equivalent of an interest rate, based on actual investment profits., but it is not contractually guaranteed in the same way. For most savers, this distinction makes no practical difference.
Al Rayan Bank and Gatehouse Bank are both fully authorised UK banks and your deposits are FSCS protected up to £120,000. Always verify FSCS protection directly with any provider before depositing significant sums.
Many scholars advise that interest already earned on a conventional account should not be kept — it can be given to charity without the intention of reward (sadaqah). Consult a qualified Islamic scholar for advice specific to your situation. Moving your savings to a halal account going forward is a straightforward step that most British Muslims can take immediately.
A standard Stocks and Shares ISA is not inherently halal or haramForbidden under Islamic law. — it depends entirely on what you invest in. Some providers offer halal investment options within an ISA wrapper. Wahed and Cur8 Capital both offer Sharia-compliant investing options worth exploring.
See all certified providers side by side on our free comparison tool.
Compare savings accounts →Related guides