Al Rayan Bank customers have the right to sell their property at any time, with no penalties, even if they are in a Fixed Rental Rate agreement.

If a customer decides to sell the property which has increased in value, the Bank forgoes its rights to a share of the profits and they are paid entirely to the customer.

Al Rayan Bank HPP is based on Diminishing Musharaka (Co-ownership) and Ijara (Lease) agreements. One of the important conditions for Musharaka, under Sharia, is that the partnership is formed with the objective of making a profit. It cannot be formed, by either party, with a hidden intention to create a loss for the partner.

Under the Al Rayan Bank HPP the customer has the right to request the sale of the property at any time, without incurring any penalties. The Bank will, in normal circumstances, agree to sell. Any profit made from the sale will go entirely to the customer. Al Rayan Bank will forgo its share in any profit made from the sale. However, sometimes a negative equity situation may arise when the sale price is lower than the initial purchase price.

In this instance, since the sale is resulting in a loss, the Bank, as a partner in the property, has the right, under Sharia, to refuse the sale. Nevertheless, if the customer has special circumstances and really needs to sell, they can purchase the Bank’s share for the same initial purchase price. They may then sell the property to a third party at any price they are willing to take. This, however, may result in a loss for the customer.

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Sharia does not allow clauses in two contracts which make them interdependent on each other with a complicated outcome that is not Sharia compliant. This is not the basis for an Al Rayan Bank HPP which is based on independent and separate contracts, the outcome of which is straightforward for both the customer and the Bank.

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When a consumer buys a property in the UK, they automatically must pay Stamp Duty, if applicable. Under the Al Rayan Bank Home Purchase Plan (HPP), the customer and the Bank jointly purchase the property. However, the ultimate owner will be the customer after they have bought the Bank’s share over a period of time. As such the Stamp Duty cost will also, eventually, have to be passed to the customer.

For Al Rayan Bank to be able to offer the HPP with a competitive monthly rental rate, it is more practical if the customer pays the Stamp Duty when the property is initially purchased. Some Islamic banks do offer to share the costs when the property is first bought. However, this results in a subsequent higher monthly rental rate to cover the bank’s extra costs.

Thus, with Al Rayan Bank the customer pays the Stamp Duty at the outset of the joint purchase to enjoy a lower rental rate over the long term. It is interesting to note that in 2003 the UK Government acted to end the double stamp duty incurred by customers buying their homes under Islamic finance principles. This helps to introduce a level-playing field for Islamic banks offering this type of home finance.

The Home Purchase Plan (HPP) is a product which enables the customer to buy their own home in a Sharia compliant way, without interest. The overall objective of the HPP, therefore, is to allow the customer to purchase the property over a period of time, so that, ultimately, they become the owner.

For an Islamic bank to be able to offer the HPP at a competitive rental rate, it does not take on the responsibility of maintenance and insurance as part of the Ijara agreement. If the bank were responsible for carrying out maintenance, procuring buildings insurance and the subsequent administration, the rental rate would need to be higher.

This would therefore affect the customer’s long-term objective of buying their home in a Sharia compliant, and affordable, way. With an Al Rayan Bank HPP, the Bank appoints the customer as a Service Agent responsible for maintenance of the property and ensuring that it is covered by appropriate insurance. This is permissible according to Sharia and is beneficial for the customer; it means the Bank can charge a lower rental rate that is competitive with conventional banking and ultimately enables the customer to buy their home without paying interest.

Hence, the responsibility for maintenance and insurance rests with the customer, who will ultimately own the property after they have bought the Bank’s share over a period of time.

Al Rayan Bank does not currently provide personal loans, overdrafts or credit cards.

As the customer buys our share in the property, their ownership increases, and their rental contributions therefore decrease.

Since 1 January 2023, an account maintenance fee of £5 per month has applied on all personal Current Accounts with a balance less than £2,500, as of the final working day of the month.

Personal Current Accounts with a balance equal to, or greater than £2,500 - as of the final working day of the month - are not be charged.

If your would like to find out more, including information on how to close your personal Current Accounts, click the link below.

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Savings account applicants must reside in the UK or non-EU countries, with the exception if Cash ISA applicants who must reside in the UK.

Savings account applicants must reside in the UK or non-EU countries, with the exception if Cash ISA applicants who must reside in the UK.

Please contact our Customer Services team by visiting alrayanbank.co.uk/contact-us as soon as possible.

Depositing in a Lloyds Bank branch: cash and cheques usually take up to four working days to clear. This service is only available for Current Accounts.

You can fund your savings account either by direct account transfer or a cheque from an account in your name.

Whichever method you choose, you will need to make a note of:

• Your account number, a unique eight-digit number.
• Your reference number, a unique number preceded by the letters ‘LIB’

You’ll find your account number and reference number in your Welcome Letter, which you will receive a few days after opening your account, and on the ‘Next Steps’ and ‘Final Stage’ screens of an online application.

Funding your account by transfer

Please pay your deposit using the following information:

• Account name: the name of the account holder
• Sort code: 30-00-83
• Account number: ********
• Reference Number: LIB******

Funding your account by cheque

If you’d like to pay in a cheque by post, please make your cheque payable to yourself, clearly writing your account number and LIB reference number on the back of your cheque. You can then post it to Al Rayan Bank, PO Box 12461, Birmingham, B16 6AQ. 

Please note we can only accept payments from an account an account in your name.

You can change postal address, phone number and email address through Digital Banking or by writing to us.

Digital Banking

To change your postal address, phone number or email address through Digital Banking, please log onto the Mobile Banking App or Desktop Portal and select ‘Secure messages’ from the menu.  Click ‘add’ to create a new message and then select ‘Services’.  From here you can notify us of a change in address, contact details and other important changes,  

Please don't email us any requests to change your contact details – they're not secure so we can't act on them.

In writing

If you are writing to us, please include your name, address, account number and a wet signature. If you are changing your address and your account has been opened for less than a month, we'll need to see a proof of address as well.

Please visit our contact us page for our up to date contact details.

Joint accounts

If you have a joint account, you can update the joint account address and your customer address. The other account holders will need to contact us separately to update their customer addresses.

Minimum deposit amounts vary depending upon the account. Please visit our accounts comparison page to find out more.

You should let us know immediately if your card, cheque book or paying-in book has been lost or stolen.

Report a lost or stolen card

You can also give us a call or write to us. If you are writing to us, please include your name, address, account number and a signature. Please visit our contact us page for our up to date contact details.

If your debit card has been damaged, please give us a call or write to us. If you are writing to us, please include your name, address, account number and a  signature. Please visit our contact us page for our up to date contact details.

There are no charges for ordering a replacement card if your card gets damaged. You can continue using the same PIN when you receive your replacement card.

To withdraw money from a notice savings account, you will have to give a notice depending upon the length of your account. For example, for 90 Day Notice Savings Account you'll have to give us 90 days' notice to make a withdrawal.

If you have changed your name, please let us know by writing to us. Please visit our contact us page to find out our up to date contact details. We'll need to see an original or a certified proof, for example, deed poll, passport, marriage or divorce certificate.

You can do this through Digital Banking or over the phone. Please visit our contact us page to find out our up to date contact details. 

Since 6 April 2016 all banks and building societies are no longer required to deduct tax from the savings returns you earn. You have a Personal Savings Allowance and once you reach that, you will need to pay any tax that’s due. ISA savings do not form part of your Personal Savings Allowance and remain tax-free.

Find out more about Personal Savings Allowance 

Since April 2016 all banks and building societies are no longer required to deduct tax from the savings returns you earn. You have a Personal Savings Allowance and once you reach that, you will need to pay any tax that’s due. ISA savings do not form part of your Personal Savings Allowance and remain tax-free. For more information, please click here.

There is no charge for stopping a cheque.

To stop a cheque, you can give us a call or write to us. If you are writing to us, please include your name, address, account number and a wet signature. Please visit our contact us page for our up to date contact details.

You can do this online if you have Digital Banking, over the phone or by writing to us. If you are writing to us, please include your name, address, account number and a wet signature. Please visit our contact us page for our up to date contact details.

If you have received a dormancy letter from us and would like to reactive your account, we'll need to see your proof of identity and proof of address. You can do this by writing to us. When writing to us, please include your name, address, account number and a signature. Please visit our contact us page for our up to date contact details.

There is no restriction as to the number of standing orders you can hold.

If you are travelling outside the UK, you'll need to let us know. We'll need your details around when and where you're travelling, duration of your stay and your emergency contact details.

Due to international rules and restrictions, your debit card may be restricted in certain countries, so please have an alternative method of payment available where possible. To see the full list of countries please click here.

To find out more about charges when using your debit card overseas, please click here. 

To order a duplicate statement you can give us a call or write to us. If you're writing to us, please include your name, address account number and a wet signature. Please visit our contact us page for our up to date contact details.

A Certificate of Profit is a statement that details the total value of the profit that the Bank has credited to a customer’s savings account throughout the previous tax year. Where a customer needs to complete a Self-Assessment for Tax purposes, the Certificate of Profit can be useful.

If you would like us to send you a Certificate of Profit for your savings accounts with Al Rayan Bank, please contact us on 0800 408 6407.

Maintaining the Account (Current Account Maintenance Fee)

• £5 per month per Current Account
• The monthly fee will be waived where, on the last working day of the month, your account balance  is equal to or greater than £2,500. 

If you do not hold a UK passport and your main residence is not in the UK

• £20 per month per Current Account
• The monthly fee will be waived where you hold at least £50,000 on deposit or if you are a Home Purchase Plan Premier customer. 

Current Account Fee Information Document

Plus a counter fee

• All transactions at Knightsbridge branch counter if you do not meet the threshold - £5 per transaction (max £5 per day)

The debit card limit will be as follows

• Daily withdrawal limit at any ATM £750
• Daily card purchase limit £20,000

For your own benefit and protection, you should carefully read the following terms and conditions.

UK banks are required to collect certain tax related information from their account holders under Automatic Exchange of Information (AEoI) agreement as part of the International Tax Compliance Regulations. The legislation covers a large number of countries in order to assist tax authorities to deter and detect tax evasion.

To find out more about AEoI and the participating countries, please visit the OECD website.

The Automatic Exchange of Information (AEoI) allows governments to exchange information through tax authorities in certain countries. This legislation is known as the Common Reporting Standard (CRS) and has been adopted in order to create tax transparency worldwide. To date, more than 100 countries, including the UK, Islands (Jersey, Guernsey, Isle of Man) and Gibraltar, have committed to adopting the CRS.

To comply with the CRS, participating countries must obtain certain customer information from their Financial Institutions and exchange that information on an annual basis with other participating countries.

For a list on which countries are participating, please click here.

Under the CRS, Al Rayan Bank is required to identify customers who are tax resident in a participating country. If you are tax resident outside the country where you bank then we may be required to provide details, including information relating to your accounts, to the national tax authority in the country where the account is held.

You can find out more about Common Reporting Standards (CRS) via the following websites:

• HMRC’s website
• Organisation for Economic Cooperation and Development (OECD) website

It is important to note that Al Rayan Bank cannot provide help or advice to customers on CRS or any other tax related matter. Should you wish to seek such advice, we recommend consulting an independent tax advisor.

FATCA was introduced by the United States (US) Internal Revenue Service (IRS) to identify US persons, both individuals and entities, who have US tax obligations to report their worldwide income on an annual basis, regardless of whether or not they currently reside in the US.

FATCA requires global financial institutions such as Al Rayan Bank to identify all reportable US persons within their client base and provide information on such accounts to the appropriate tax authorities.

The reports are submitted by the UK tax authority to the US IRS through the provisions of an Intergovernmental Agreement (IGA) in place. 

Under Foreign Account Tax Compliance Act (FATCA), Al Rayan Bank is required to identify customers who have a US connection. If you are tax resident outside the country where you bank then we may be required to provide details, including information relating to your accounts, to the national tax authority in the country where the account is held.

You can find out more about Foreign Account Tax Compliance Act (FATCA) via the following websites:

• HMRC’s website
• IRS website

It is important to note that Al Rayan Bank cannot provide help or advice to customers on FATCA or any other tax related matter. Should you wish to seek such advice, we recommend consulting an independent tax advisor.

A “TIN” is a ‘Taxpayer Identification Number’ or a functional equivalent. It a unique combination of letters and/or numbers assigned by a jurisdiction to an individual or an entity and is used to identify the individual or entity for the purposes of administering the tax laws in that jurisdiction.

The United Kingdom issues two TIN-like numbers: (a) The Unique Taxpayer Reference (UTR) which is a unique set of 10 numerals allocated automatically by HMRC to both individuals and entities who have to submit a tax return. (b) The National Insurance Number (NINO) which consists of two letters, six numbers and a suffix letter A, B, C or D (for example DQ123456C). All individuals living regularly in the United Kingdom are either allocated or can be issued with a NINO.

If you're an existing customer and you haven't provided us your up to date tax-residency details, we may be obliged to report certain information on your account(s) periodically to the relevant tax authorities. This will be based on the information we hold about you and may not be correct for the purposes of tax residency.

The death of someone close is always a difficult time. Dealing with practical matters and making important financial decisions can seem overwhelming when you’re experiencing grief. We’re here to support you through the steps and decisions you will have to make. 

Visit Dealing with bereavement to find out you need to do next.

Once we have received the correct documentation, the account will be closed and the balance will be released within 3-5 working days.

If you have already paid the funeral bill from your own account, we may be able to reimburse you once we have seen the death certificate, the funeral bill and proof of payment.

If sufficient funds are not available, we can make a partial payment, to the value of the funds held, with written confirmation from the Personal Representative(s).

To release funds for a funeral which has not yet been paid for, we need to see the death certificate and an invoice from the funeral director. These documents can be original or certified to Al Rayan Bank document certification standards.

Once we have been notified of the death, no credits will be accepted into a sole account. Joint accounts will remain active.

Going through financial difficulties can be really worrying. Changes in circumstances which are outside of your control, such as redundancy or illness can leave you struggling financially. Things can often return to normal, but ignoring financial issues can make them worse. If your circumstances have changed and you are worried about money, it’s important that you take action straight away.

If you are an Al Rayan Bank customer, please call us so we can help you find a solution for your individual financial needs.

Call us on 0800 4086 407.

More information

If you are being subjected to financial abuse, help is available. Please see Where to get support for information about organisations which can assist you. If you need to update your accounts with Al Rayan Bank because of financial abuse, please call us on 0800 408 6407*

* Monday to Friday from 9.00am to 5.00pm.

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