Sharia-compliant savings


When might a Sharia compliant account be for you?

Money Advice Service

Sharia-compliant accounts provide the same day-to-day banking services as mainstream current accounts. However, they don’t give you a return on your money or offer overdraft facilities as the principle of paying or charging interest is against Islamic law. Any money invested will be kept separate from other bank accounts – it won’t be used to generate interest or be invested in prohibited businesses.

When might a Sharia compliant account be for you?

A Sharia-compliant bank account is for you if:

  • you want to bank according to Islamic law
  • you want your savings to grow through Sharia-compliant profits, not through interest, or
  • you don’t want your bank to lend your money to businesses that provide goods or services – such as alcohol, tobacco and gambling – that are against Islamic principles

How Sharia compliant savings work

With a Sharia-compliant savings account, instead of lending out your savings and charging interest then passing some of this on to you, the bank uses your money in a way that’s consistent with Islamic beliefs.

Your bank will follow the advice of a panel of Muslim bank advisers to make sure that profit-generating activities are Sharia-compliant. Some of the profit the bank earns from these activities is returned to you, allowing you to grow your savings without earning interest.

Where to get a Sharia compliant savings account

HSBC, Lloyds TSB and BLME offer Sharia-compliant accounts to customers in the UK.

Read about HSBC’s Sharia-compliant current account on their website

Find out about Lloyds TSB’s Sharia-compliant current account on their website

Get more details about BLME’s Sharia-compliant deposit account on their website

The Islamic Bank of Britain offers a more extensive range of Sharia-compliant accounts, including savings accounts.

Visit the Islamic Bank of Britain’s website to learn more about their savings options

Help us keep this list up to date – if you provide Sharia-compliant savings products to retail UK customers, please contact Money Advice Service

How secure are Sharia-compliant accounts?

HSBC, Lloyds TSB, BLME and the Islamic Bank of Britain are all regulated by the Financial Conduct Authority. If they were to fail, you could claim up to £85,000 from the Financial Services Compensation Scheme for each bank with which you lost money. If you have several accounts with the same bank, your total limit for that bank is still £85,000.

Find more on our page Compensation if your bank or building society goes bust

If things go wrong

If you’re unhappy with the service you get from your bank or you want to make a complaint, read Sort out a money problem or make a complaint

This article is provided by the Money Advice Service.


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