Best Halal Savings Accounts UK: Expected Profit Rates (2026)

The best halal savings accounts in the UK are from Islamic banks such as AlRayan Bank and Gatehouse Bank. They pay an expected profit rate instead of interest and are FSCS-protected up to £120,000. In November 2026 AlRayan’s 12-month fixed term deposit was showing 5.18% expected profit (£10,000 minimum), one of the highest one-year rates on the market, while Gatehouse offered easy access from £1 and fixed terms from £1,000.

Current halal savings rates (checked November 2026)

From the banks’ own websites. Rates change often, so check before you apply.

AlRayan Bank

*Where profit is paid on maturity. If your balance falls below £10,000, the rate drops to 0.05%. Several AlRayan fixed terms are also available through savings platforms such as Raisin with a £1,000 minimum, usually at slightly lower rates.

Gatehouse Bank

Gatehouse also has a Regular Saver (up to £300 a month) and a Community Saver. Its fixed-term products fund tree planting through its “Woodland” range.

Others worth checking

• Kuwait Finance House PLC (formerly Ahli United Bank UK) offers a Wakala fixed investment deposit and a call investment account, and some fixed terms through Raisin.
• QIB (UK) and BLME have offered Sharia-compliant notice and fixed-term accounts, mostly through savings platforms or with higher minimums.

How expected profit differs from interest

On the surface, “5% interest” and “5% expected profit” look the same. The difference is in the contract.

In practice, UK Islamic banks set the expected rate conservatively and keep profit reserves to smooth returns. AlRayan has said it has always paid at least its quoted rate, and Gatehouse says it has always paid the expected profit rate stated at account opening. That track record is not a guarantee.

Because the rate is guided by the market, it moves with Bank of England rates much like normal savings. Some people see that as a problem. Most scholars do not: what matters is that the return comes from permissible activity, not that it is unrelated to market prices.

Are they really halal?

Each bank has a Sharia supervisory board that approves products and audits them every year. AlRayan publishes its Sharia committee report with its annual accounts. Most UK scholars and organisations accept these accounts. A minority are more cautious, for example where an Islamic bank places surplus funds through commodity murabaha (tawarruq), which some classical scholars disliked. If that concerns you, ask the bank how your product is structured and talk to a scholar.

FSCS protection: the details

• Protection is £120,000 per person, per banking licence, for failures on or after 1 December 2025. Joint accounts get £240,000.
• AlRayan Bank and Gatehouse Bank each have their own licence, so you could hold up to £120,000 at each.
• Accounts opened through Raisin are protected by the underlying bank’s licence, not by Raisin.
• Money in a halal investment fund is not a deposit and is not covered in the same way. Its value can fall.
• E-money accounts (some fintech apps) are safeguarded rather than FSCS-protected.

Which account suits you?

Our pick: For £10,000 or more you will not need for a year, AlRayan Bank’s 12 Month Fixed Term Deposit. For smaller balances or easy access, Gatehouse Bank.

Worked example: £15,000 for a year

On £15,000 the difference between leaving cash idle and a fixed term is more than £700 a year. Basic-rate taxpayers have a £1,000 Personal Savings Allowance, which expected profit counts towards just like interest.

Halal Cash ISAs and the 2027 change

From 6 April 2027 the Cash ISA allowance for under-65s falls to £12,000 a year, within the £20,000 total ISA allowance. Existing balances are not affected. Few Islamic banks offer Cash ISAs, so if you want tax-free profit, open one when you see a good rate and check whether it accepts transfers in.

If you already have interest from an old account

1. Move the money to a Sharia-compliant account or a current account that pays no interest.
2. Total up the interest you received (check your statements or annual summary).
3. Give it away to charity, with the intention of getting rid of it rather than earning reward. This is the mainstream view; see our Islamic finance guide for more detail and differences of opinion.

Steps to open one

1. Decide how much you need instant access to, and how much you can lock away.
2. Check the minimum (AlRayan’s direct accounts need £10,000; Gatehouse starts at £1).
3. Apply online with ID and proof of address. Most accounts open in a few days.
4. Fund it from your current account and note any maturity date in your diary.
5. When it matures, compare rates again rather than letting it roll over.

Saving for a home? Pair this with our guide to halal mortgages. Ready to take more risk for long-term growth? See halal investing in the UK. And if you bank with an app, check which interest features to switch off in Is Revolut halal?.