Shariah savings accounts are quietly gaining momentum – and for good reason.
These accounts combine ethical banking with attractive returns, making them an increasingly popular choice for both faith-based and sustainability-conscious savers.
Unlike conventional banks, Shariah-compliant institutions operate under Islamic finance principles. This means no interest is paid or earned. Instead, returns are generated through profit-sharing from investments that meet strict ethical guidelines. These profits are then distributed to savers based on what’s known as an Expected Profit Rate (EPR).
Importantly, Shariah banking excludes investments in harmful or unethical industries such as alcohol, gambling, tobacco, and arms manufacturing. This means they appeal not only to muslims, but to anyone looking to be more sustainable with their money.
Here are the some of the top Shariah savings accounts in the UK offering a competitive EPR:
1. QIB (UK) through Raisin UK
Raisin UK is currently offering new customers a £100 bonus on new accounts as part of a Grow Your Savings campaign. Enter the promo code ‘WELCOME100’ whilst signing up for a new Raisin UK Account. Ts&Cs* apply.
Fixed-rate bonds (your money is locked away for the set term)
- 6 months – 4.20 per cent
- 2 years – 4.15 per cent
- 1 year – 4.10 per cent
Notice accounts (you can access your account with notice)
- 31 days – 4.25 per cent
- 95 days – 4.15 per cent
Key terms: The EPR for fixed rate bonds stays the same for the duration of your term, while the EPR on notice accounts is variable. Minimum deposit is £1,000.
2. Gatehouse Bank
- 6 month Fixed Term Woodland saver – 4.25 per cent
- 1 year Fixed Term Woodland Saver – 4.25 per cent
- 2 year Fixed Term – 4.15 per cent
- Easy Access account – 4.15 per cent
Key terms: Minimum deposit on the Woodland saver accounts is £1,000. For Easy Access it’s £1. Gatehouse Bank plants a tree in a UK woodland for every account opened or renewed.
3. Al Rayan Bank
- 12 Month Fixed Term Deposit – 4.20 per cent
- Educate A Child International 36 Month Fixed Term Deposit – 4.05 per cent
Key terms: Minimum deposit for both accounts is £5,000. For the ‘Educate a Child International’ account, Al Rayan will contribute an amount equal to 0.1 per cent of your balance to the charity.
FCA regulated
Shariah-compliant banks in the UK are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). So, just like conventional banks in the UK, your deposits (up to £85,000 per person, per bank) are protected under the Financial Services Compensation Scheme (FSCS).
* to benefit from the Grow Your Savings £100 welcome bonus, you must fund your account with a minimum of £5,000 between the campaign dates of May 19 and June 16 2025.
Good With Money occasionally uses affiliate links to providers or offers, where relevant. This means that if you open an account or buy a service after following the link, Good With Money is paid a small referral fee. We choose our affiliates carefully and in line with the overall mission of the site.
