Why This Comparison Matters
If you are looking for a halal savings account in the UK, two names come up more than any other: Gatehouse Bank and Al Rayan Bank. They are the only two fully Shariah-compliant retail banks with a meaningful range of savings products, and both are authorised by the PRA and regulated by the FCA.
The problem is that most people either pick whichever one they hear about first, or they spend weeks going back and forth between both websites trying to figure out the differences. Neither approach is ideal.
This guide lays out the key differences clearly so you can decide based on what actually matters for your money, not guesswork.
Last updated: 14 October 2026. Rates change regularly. We will update this page when either bank adjusts its EPRs. Always confirm the current rate directly with the provider before opening an account.
Comparing other options too? See our full list of Islamic banks in the UK.
Quick Summary: Gatehouse vs Al Rayan at a Glance
| Feature | Gatehouse Bank | Al Rayan Bank |
|---|---|---|
| Founded | 2007 | 2004 (as Islamic Bank of Britain) |
| Headquarters | London | Birmingham (registered office: London) |
| Shariah structure | Wakala (agency) | Mudarabah (profit sharing) |
| Easy access EPR | 2.65% | 2.75% (from £10,000) |
| 1-year fixed EPR | 4.20% | 5.15% (from £10,000) |
| Minimum deposit (easy access) | £1 | £10,000 |
| Minimum deposit (fixed) | £1,000 | £10,000 |
| Cash ISA available | Yes (easy access + fixed term) | Not directly; fixed term ISAs through Meteor |
| Notice accounts | Yes (95-day, 120-day) | No |
| Regular saver | Yes | No |
| FSCS protected | Yes, up to £120,000 | Yes, up to £120,000 |
| Onboarding | Fully online | Digital banking app (registration required) |
| Physical branches | None (online only) | None for retail (digital and telephone only) |
| Tree planting | Yes (1 tree per fixed term/ISA account) | No |
EPRs shown are indicative and were correct at the time of writing. These are Expected Profit Rates, not guaranteed interest. Always check the bank's website for the latest figures before applying.
What Is an Expected Profit Rate (EPR)?
Before going deeper, it is worth understanding how these accounts actually work, because they do not pay interest.
Both Gatehouse and Al Rayan are Shariah-compliant, which means they cannot charge or pay interest (riba). Instead, they invest your deposit into permissible activities, typically UK property financing, and share a portion of the profit with you.
The rate they quote is called an Expected Profit Rate (EPR). It is not technically guaranteed in the way a conventional interest rate is, because it is tied to actual investment performance. However, both banks have always paid the EPR they have advertised since they were founded. Al Rayan has been doing this since 2004 and Gatehouse since 2007. In practical terms, you can treat the EPR much like a fixed rate, with the key difference that the underlying structure is halal.
The EPR is broadly comparable to the AER (Annual Equivalent Rate) you see on conventional accounts, so you can use it to compare returns.
Shariah Structures: Wakala vs Mudarabah
This is where the two banks differ at a structural level, and it matters if you care about how your money is being used.
Gatehouse Bank uses Wakala. This is an agency arrangement. You appoint the bank as your agent to invest your money on your behalf. The bank agrees to target a specific profit rate and keeps anything earned above that as its fee. Your capital is not at risk beyond the standard FSCS protections.
Al Rayan Bank uses Mudarabah. This is a profit-sharing partnership. You provide the capital (as the Rabbul Mal) and the bank provides the expertise and management (as the Mudarib). Profits are shared according to a pre-agreed ratio. In theory, losses fall on you (the capital provider), while the bank loses its time and effort. In practice, FSCS protection means your deposits are covered up to £120,000 regardless. For a more detailed explanation of how Mudarabah works, Amanah Advisors have published a helpful guide written by Mufti Faraz Adam.
Which structure is "more halal"? Both are recognised as Shariah-compliant by the banks' respective Shariah supervisory boards. There is scholarly debate about the finer points, and some scholars prefer Mudarabah because it more closely resembles a true partnership with genuine risk sharing. Others consider Wakala perfectly sound. If you have a strong preference based on your own understanding or follow a particular school of thought, that may influence your choice. If not, both are considered acceptable by mainstream Islamic finance scholars in the UK.
Savings Accounts Compared
Easy Access
If you want to be able to withdraw your money at any time without penalty, both banks offer an easy access option, but the differences are significant.
Gatehouse Bank currently offers 2.65% EPR on its Easy Access account. The minimum deposit is just £1, and you can manage everything through their online portal or savings app. Profit can be paid monthly or annually.
Al Rayan Bank offers 2.75% EPR on its Everyday Saver (Issue 3). The minimum deposit is £10,000, and the rate drops to 0.05% if your balance falls below it. You need to register for their Digital Banking service to open an account. Profit is paid monthly.
The verdict: On rate the two are now close, with Al Rayan slightly ahead at 2.75% against 2.65%. On access Gatehouse wins clearly: a £1 minimum versus £10,000, and Al Rayan's rate falls to 0.05% if your balance dips below £10,000. For anyone starting out or keeping a small emergency fund, Gatehouse is the practical choice. If you want more on easy access money, QIB UK through Raisin pays more than either; see the best halal savings accounts.
Fixed Term Deposits
This is where things get more competitive, and where both banks really earn their keep.
Gatehouse Bank offers fixed terms from 6 months up to 5 years through its Woodland Saver range. The 1-year rate is 4.20% EPR with a £1,000 minimum deposit. For every account opened, Gatehouse plants a tree in a certified UK woodland. A pleasant touch, though it should not be the main reason you choose them.
Al Rayan Bank now offers 12-month and 24-month fixed terms directly. The 12-month rate is 5.15% EPR and the 24-month 4.43%, both with a £10,000 minimum deposit and profit paid at maturity. Al Rayan also offers a charity-linked 36-month product (Educate A Child International) at 4.55% EPR. Through Raisin, Al Rayan's fixed terms start from £1,000, at 4.85% for one year.
The verdict: With £10,000 or more, Al Rayan's 5.15% for one year is clearly ahead of Gatehouse's 4.20%: on £10,000 that is about £95 more over the year. Below £10,000, Al Rayan through Raisin at 4.85% still beats Gatehouse direct. Al Rayan's 36-month charity product is worth considering if you are comfortable locking money away for three years and want your savings to support a specific cause.
Cash ISAs
Both banks offer Cash ISAs, but the range differs.
Gatehouse Bank offers an Easy Access Cash ISA from £1 and fixed term Cash ISAs from 1 year to 5 years, which are part of the Woodland Saver range. Every Gatehouse Cash ISA accepts transfers in.
Al Rayan Bank no longer opens Cash ISAs directly: its instant access, notice and fixed term ISAs are all listed as closed to new customers. Existing Al Rayan ISA holders keep theirs, and new savers can reach its fixed term Cash ISAs through the Meteor savings platform.
The verdict: For an easy access Cash ISA, Gatehouse is now the only Islamic bank option. For a fixed term Cash ISA, compare Gatehouse direct with Al Rayan through Meteor, which was paying more in October 2026. Our halal ISA guide has the current rates side by side.
Notice Accounts
Gatehouse Bank offers 95-day and 120-day notice accounts, sitting between easy access and fixed term. You get a better rate than easy access but need to give notice before withdrawing.
Al Rayan Bank does not currently offer notice accounts.
The verdict: If you want the middle ground, slightly better returns than easy access but without a full lock-in, Gatehouse is the only one of the two offering this option. QIB UK also offers notice accounts through Raisin.
Regular Saver
Gatehouse Bank offers a Regular Saver account for people who want to build savings gradually through monthly deposits.
Al Rayan Bank does not currently offer a regular saver product.
The verdict: If you want to save a set amount each month rather than depositing a lump sum, Gatehouse is your choice.
FSCS Protection
Both banks are covered by the Financial Services Compensation Scheme (FSCS) up to £120,000 per eligible depositor. This limit was increased from £85,000 on 1 December 2025.
This is the same protection you get at any authorised UK bank or building society. If either Gatehouse or Al Rayan were to fail, the FSCS would compensate eligible depositors up to £120,000. Your savings are just as secure in an Islamic bank as they would be at any high street bank.
If you are saving more than £120,000, one practical approach is to split your savings across both banks (or other FSCS-protected institutions) to stay within the protected limit at each one. For joint accounts, each account holder is protected individually, meaning a joint account could be covered up to £240,000.
Opening an Account: What to Expect
Gatehouse Bank
The process is entirely online. You visit their website, complete the application form, verify your identity, and fund the account. Most people are set up within a few working days.
The minimum deposit for easy access is just £1, which makes it one of the most accessible halal savings options in the UK. Fixed terms require £1,000.
Gatehouse also has a dedicated savings app, available on iOS and Android, which lets you manage your accounts on the go.
Al Rayan Bank
Al Rayan requires you to download and register for their Digital Banking platform before you can open a savings account. The process is more involved than Gatehouse, and some customers report that it can take longer, particularly if any documents need manual verification.
Al Rayan no longer operates physical branches for retail customers. All savings accounts are managed through Digital Banking (app and desktop portal) or via Telephone Banking on 0800 408 6407. The bank's registered office is in London, but this is not a customer-facing branch.
The minimum deposit for its savings accounts is now £10,000, which is a higher barrier to entry than Gatehouse.
Who Should Choose Gatehouse Bank?
Gatehouse is likely the better fit if you:
- Want the best rate direct from a bank on less than £10,000
- Are starting with a smaller amount (under £10,000)
- Prefer a fully online, app-based experience
- Want a notice account or regular saver option
- Care about the environmental angle (Woodland Saver tree planting)
Visit Gatehouse Bank Savings to view their full range.
Who Should Choose Al Rayan Bank?
Al Rayan is likely the better fit if you:
- Have £10,000 or more and want the higher 1-year fixed rate (5.15% in October 2026)
- Want a fixed term Cash ISA through Meteor, which was paying more than Gatehouse's fixed term ISAs in October 2026
- Have an existing relationship with Al Rayan and want everything in one place
- Prefer the Mudarabah profit-sharing structure for its closer alignment to classical Islamic partnership principles
- Want the reassurance of the UK's oldest Islamic bank (established 2004, Moody's rated Aa3)
Visit Al Rayan Bank Savings to view their full range.
Can You Use Both?
Yes. And for many people, this is the best approach.
There is nothing stopping you from holding accounts at both banks. Many UK Muslims do exactly this: they keep an easy access pot at Gatehouse for the low minimum, and an Al Rayan fixed term Cash ISA through Meteor for the tax-free wrapper. Or they spread larger savings across both to maximise FSCS coverage.
The accounts are separate and do not affect each other. You can open and manage both online.
The Bigger Picture: Are Halal Savings Accounts Worth It?
Some people wonder whether halal savings accounts are even worth the effort, particularly when conventional banks occasionally offer slightly higher rates.
The short answer: in the current market, Islamic banks are genuinely competitive. Both Gatehouse and Al Rayan regularly appear in Moneyfacts best-buy tables alongside conventional providers. You are not sacrificing returns to save ethically.
More importantly, both banks invest your deposits in Shariah-compliant activities and exclude sectors like alcohol, gambling, tobacco, and arms. Your money is not sitting in a conventional interest pool. For anyone who has been keeping cash in a 0% current account because they were unsure what was halal, these accounts are a straightforward, FSCS-protected way to put your savings to work.
If you would like to explore more about what makes a savings account halal, our halal savings guide covers the principles in more detail.
Frequently Asked Questions
Is the Expected Profit Rate guaranteed?
Not technically. It is "expected" rather than guaranteed because it is based on actual investment returns rather than a predetermined interest rate. However, both Al Rayan and Gatehouse have always paid their advertised EPR since they were founded. The risk of them not doing so is extremely low.
Are these accounts halal?
Both banks maintain independent Shariah supervisory boards that oversee their products. Gatehouse uses a Wakala structure and Al Rayan uses Mudarabah. Both are widely accepted as Shariah-compliant. If you follow a specific school of thought or scholar who has concerns about either structure, you should verify accordingly. Amanah Advisors is a reputable source for independent Shariah guidance on financial structures.
Can non-Muslims open these accounts?
Yes. Both banks are open to anyone regardless of religion. Gatehouse Bank estimates that around 70% of its customers are non-Muslim. Many choose Islamic banks purely for the competitive rates and ethical investment approach.
What happens if the bank fails?
Both banks are FSCS-protected. Your eligible deposits are covered up to £120,000 per person, per authorised institution. This is the same protection you get at any UK bank. For joint accounts, each person is protected individually.
Can I open accounts at both banks at the same time?
Yes. There is no restriction on holding accounts at multiple banks. Many savers use both to diversify their coverage and access different product types.
Where can I learn more about the Shariah structures used by these banks?
For Mudarabah (used by Al Rayan), see Amanah Advisors' simplified guide. For Wakala (used by Gatehouse), Amanah Advisors also publish resources on agency-based Islamic finance structures. Both banks' own websites provide information about their Shariah supervisory boards and how their products are structured.
Our Approach
Ziyad Finance provides educational guidance to help UK Muslims make informed decisions about halal savings and investing. We are not a bank, we do not sell financial products, and we are not regulated financial advisers. The information in this article is based on our independent research and is designed to help you understand your options, not to tell you what to do.
Always verify current rates and terms directly with the provider before opening an account. Your personal circumstances, risk tolerance, and financial goals should guide your decisions.
If you would like personalised guidance on structuring your savings in a way that aligns with your values and goals, you can book a 1-to-1 call with us.
Once your halal savings account is set up and your emergency fund is in place, the next step for many people is putting money to work through halal investing. We cover every major option available to UK Muslims, including Shariah-compliant ETFs, Wahed Invest, and how to use a tax-free ISA: Halal Investing UK: A Complete Guide for 2026.
Wahed partner offer: Ziyad Finance is a Wahed partner. Enter code ziyad when you sign up in the Wahed app for a £10 bonus once your account is funded with at least £50. Terms set by Wahed and can change. We may benefit when you use the code. Capital at risk.
Rates and product details were correct at the time of writing (checked 14 October 2026). This page will be updated when significant changes occur. Ziyad Finance is not affiliated with Gatehouse Bank or Al Rayan Bank.
Frequently Asked Questions
Is the Al Rayan Bank savings account halal? Yes. Al Rayan Bank is a fully Shariah-compliant UK retail bank, regulated by the FCA and PRA. All its savings products use a Mudarabah (profit-sharing) structure rather than interest, and they are reviewed by an independent Shariah Supervisory Committee.
Is the Gatehouse Bank savings account halal? Yes. Gatehouse Bank is fully Shariah-compliant and uses a Wakala (agency) structure, where the bank invests your deposit on your behalf in permissible activities (mainly UK property finance) and shares the profit with you as an Expected Profit Rate.
Which is better, Al Rayan or Gatehouse? It depends on how much you are saving. Under £10,000, Gatehouse is the practical choice, with a £1 minimum on easy access and £1,000 on fixed terms. With £10,000 or more, Al Rayan currently pays more on both easy access (2.75% against 2.65%) and one year fixed (5.15% against 4.20%). For a Cash ISA, only Gatehouse sells one directly; Al Rayan's fixed term Cash ISAs are available through Meteor.
Are Gatehouse and Al Rayan FSCS protected? Yes. Both banks are covered by the Financial Services Compensation Scheme up to £120,000 per eligible depositor (the limit was raised from £85,000 on 1 December 2025).
Can I open both a Gatehouse and an Al Rayan account? Yes, and many savers do. Splitting deposits across both is the easiest way to keep everything within FSCS protection if you are saving more than £120,000.
What is the difference between Wakala and Mudarabah? Wakala (Gatehouse) is an agency contract: the bank acts as your agent, invests your funds and keeps anything earned above the Expected Profit Rate as its fee. Mudarabah (Al Rayan) is a profit-sharing partnership: profits are split according to a pre-agreed ratio. Both are recognised as Shariah-compliant by mainstream UK Islamic finance scholars.
Are Gatehouse and Al Rayan rates guaranteed? The rate quoted is an Expected Profit Rate (EPR) rather than a guaranteed interest rate. In practice, both banks have always paid the EPR they advertised since they were founded (Al Rayan since 2004, Gatehouse since 2007). Treat it like a fixed rate, with the difference that the underlying structure is halal.
Do Gatehouse or Al Rayan offer current accounts? No. Neither bank offers a halal current account in the UK. For day-to-day banking with a halal structure, look at Nomo, the app-only bank from Bank of London and The Middle East, or Kuwait Finance House's UK private banking.
