AlRayan Bank savings rates — compare every account, plus switch offers and guides

Who they are

AlRayan Bank is the UK's oldest and largest Sharia-compliant bank. It was established in 2004 as the Islamic Bank of Britain, created to offer Sharia-compliant financial products to customers of any faith. In 2014, Masraf Al Rayan - one of the largest Islamic banks in the world - became the new parent company, and the bank was renamed AlRayan Bank to reflect that relationship. AlRayan Bank UK is now a subsidiary of AlRayan Bank QPSC, one of the largest banks in Qatar.

The bank welcomes people of all faiths and has become popular with many non-Muslims looking for an ethical alternative to conventional banks. AlRayan Bank is committed to ethical banking, avoiding investments in industries such as alcohol, gambling, tobacco, and arms.

How savings work here

AlRayan Bank operates differently from a conventional savings bank, and it is worth understanding that before you open an account. Islamic banks pay profit to their savers rather than interest - instead of a guaranteed interest rate, AlRayan Bank invests customers' deposits in ethical, Sharia-compliant trading activities in order to generate a profit. The return you receive is quoted as an Expected Profit Rate rather than an interest rate, though in practice the distinction matters more in principle than in day-to-day experience. AlRayan Bank's Expected Profit Rates have historically been competitive with, and often slightly above, conventional savings rates from high-street banks, particularly in the fixed-term market.

The bank 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.

FSCS protection

Your eligible deposits with AlRayan Bank UK are protected by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme, up to a total of £120,000. AlRayan Bank holds its own banking licence, so this limit applies solely to balances held with AlRayan Bank and is not shared with any other brand. AlRayan Bank is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the PRA.

Is it right for you?

AlRayan Bank is a strong option if you want savings that are managed along ethical, Sharia-compliant lines - whether for religious reasons or simply because the approach appeals to you. Its savings range is deliberately narrow, so if you want a full suite of current accounts, credit cards, or instant-access products in one place, a mainstream high-street bank may serve you better alongside it.

There are currently no specific rates, switch offers, or product details in our AlRayan Bank data. Check the live figures shown on this page for the most up-to-date picture before you decide.