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💰 Money & work

Is a Cash ISA Halal?

Quick answer It depends

A normal cash ISA pays interest, which is riba and not allowed. Sharia-compliant cash ISAs from Islamic banks pay an expected profit rate instead, earned through permitted trade or investment. In the UK, Al Rayan Bank and Gatehouse Bank offer them.

Also asked as: “Is ISA interest haram?” · “Is there an Islamic ISA?”

Why normal cash ISAs are a problem

The ISA wrapper is just a tax rule; the account inside pays interest. Interest is riba, which is forbidden.

Halal options

Islamic banks offer "expected profit" accounts based on trade or investment contracts. A halal stocks and shares ISA is another option: see is a stocks and shares ISA halal?

Islamic cash ISAs

A cash ISA protects interest from tax, but the interest remains interest. Islamic banks offer accounts that pay a profit rate based on trade or investment.

A profit rate is not guaranteed in the same way as interest, so check how it is described. Check whether the provider's savings are covered by the FSCS.

Written and checked by

Hafiz Nasir Mehmood

Quran HafizIslamic researcher

Last reviewed 2026-11-01. How we write these answers · Suggest a correction

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