# What is Sharia-compliant savings?

> Quick answer · Last updated 4 July 2026

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## In short

Savings accounts that share profit instead of paying interest, invested only in activities permitted under Islamic law. UK banks quote an expected profit rate — not a guaranteed interest rate — and accounts are FSCS-protected like conventional savings.

Sharia finance avoids riba (interest). Your money is pooled into halal trade or asset-backed activity; profit is distributed to account holders based on agreed ratios.

Returns can vary if underlying investments underperform. Independent Sharia supervisory boards certify that products meet Islamic principles.

Read our full Sharia-compliant savings guide and compare with Cash ISAs if you want tax-free wrappers.

## Related

- [Sharia savings guide](https://moneyguide.org.uk/savings/sharia-compliant-savings/)
- [What is an Islamic mortgage?](https://moneyguide.org.uk/answers/what-is-islamic-mortgage-uk/)
- [Personal Savings Allowance](https://moneyguide.org.uk/savings/personal-savings-allowance/)

## Primary source

gov.uk/individual-savings-accounts

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.