Located in Birmingham, Al Rayan Bank is the UK’s oldest and largest Sharia compliant retail bank. Since 2004 it has been operating Islamic banking, using various principles recognised as Sharia compliant such as Ijara (leasing), Musharaka (partnership) and Wakala (agency agreement) to develop Sharia compliant financial products, such as savings accounts and home finance, which allow Muslims to conduct their finances in an Islamic way.
Topics
Instant Access Cash ISA
Al Rayan’s Instant Access Cash ISA is the UK’s only Sharia compliant instant access cash ISA. The ISA is operated under the Islamic finance principle of Wakala, which is an agency agreement for investment, where the bank works as your agent to achieve an expected profit rate, which is 0.60%. The Instant Access Cash ISA gives you access to your money whenever you need it whilst allowing you to generate a tax free return. The minimum opening balance is £50, and the current ISA allowance is £20,000 in the current tax year.
12 Month Fixed Term Deposit Cash ISA
Al Rayan’s 12 Month Fixed Term Deposit (FTD) cash ISA provides security by enabling you to make a tax free, lump-sum investment over a fixed period of time, so potentially earning higher profits. A minimum deposit of £1,000 is required to open the 12 Month FTD cash ISA, profit will be paid to savers quarterly, or on maturity, and transfers-in are allowed for up to 30 days after the account has been opened.
24 Month Fixed Term Deposit Cash ISA
As above but for a 24 month period.
Other Services
Al Rayan also offer a range of related financial services including savings and current accounts, financial planning, home finance, tax, wills, international money transfer and more.
Al Rayan Reviews and Ratings
Online reviews for Al Rayan are average, with some users frustrated with the bank’s procedures, poor customer service and the business app not functioning properly.
Trustpilot – 3.5/5 (based on 787 reviews)
Pros
- The UK’s oldest and largest Sharia compliant retail bank
- The UK’s only Sharia compliant instant access cash ISA
- Islamic banking allow Muslims to conduct their finances appropriately
- Instant access to your money online or through our telephone banking service
- Flexibility to make additional deposits with no minimum amount, up to your annual cash ISA allowance
- Expected profit rate is 0.60%
- Sharia compliant return on your saving
- 24 hour automated telephone banking
- Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority
- Award-winning: 2020 Gold Ribbon Customer experience, Best Islamic Bank of the Year
- Fast easy online setup
Cons
- No other ISA offerings available
- Many negative customer reviews including poor customer service
- Many reports of the mobile banking app not working correctly, causing frustration with customers
- Minimum opening balance is £50, higher than other banks
Website: Al Rayan