Islamic bank accounts - recommendations? (living in UK)

[Amoeba]

I'm looking to switch to a different bank account and I'm looking at potential banks and account types but it's all very confusing to me. Does anybody have any good recommendations?

[Muhaba]

i don't know. i heard there was one islamic bank that wasn't really good.

[Amoeba]

Yeah I don't really know how to tell which are good or not. I could only find one... and they require you deposit £500 and have a salary! So that isn't any good for me anyway because I don't even have enough for the first deposit nor do I have a steady income, even if it was a decent bank.

[Hamza Asadullah]

I'm looking to switch to a different bank account and I'm looking at potential banks and account types but it's all very confusing to me. Does anybody have any good recommendations?

Asalaamu Alaikum, sister may i ask why you are wanting to switch to an Islamic bank account and what is it that they would offer you that which is different to an average everyday bank account?

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[Amoeba]

I just found out that interest is forbidden in islam, and pretty much all the banks give and take interest except islamic banks which don't. I just want somewhere for if inshallah I get a job and if it doesn't allow cash in hand then I have an open bank account where my pay can go. Because one way or another I'm closing my current and savings account with RBS.

[Raaina]

Asalaam Alaykum,

Are you looking for an Islamic high street bank or an online bank account?

*edited to say - I think HSBC Have a Halal bank account as do Halifax. I'm sure other's do also, if you give RBS a call and see if they can switch your account.

[Amoeba]

High street bank? I'd prefer not to do my banking online for security reasons. But what do you mean by "high street bank"?

[Raaina]

Asalaam alaykum,

High street banks are those like HSBC, RBS, Natwest, Barcleys, Lloyds TSB.
Online bank accounts are those which are purely done online and don't have a branch on the high street you can actually visit. So for example Ing Direct, Smile.co.uk, egg.com, cahoot.co.uk

[Rabi'ya]

:sl:

My bank account is with Barclays Its their basic bank account. Unfortunately it doesnt give me a debit card, but no interest paid. no overdraft, telephone and internet banking. all other facilities such as bill payments and direct debits.

I also have a Student account as this has no interest on it. but am hoping to close that by the end of next year as I will graduate then and dont want to incur any charges.

Imo, barclays basic account(or any other basic account) seems to be the most halaal. I dont use Lloyds TSB because of their associtations and the issue with closing certain charity accounts. I dont use RBS due to personal experience, and that involves NatWest.

Im not sure about HSBC, oh and I have an account with Nationwide which serves just right. No interest, no overdraft, but this one does have a debit card facility too.

Theres many out there, as long as your ethical about it and look at features an islamic account needs to have, ie interest(or the lack of)

[Amoeba]

Interest and storage are the only features I know about banks, other things go way over my head. Things like cards and other fiddly bits... can't be bothered with them.

Thanks everyone for your suggestions.

[Rabi'ya]

Amoeba, if you are looking into getting a bank account thats suitable for your needs then you need to know about the facilities and what they are used for.

I would suggest doing a little bit of research, and think about what you want to use the account for then inshAllah it should be easy to make an informed decision.

[Amoeba]

I have done some research (been looking for a long time now) but the jargon goes way over my head. That's why I'm asking for help.

My only needs are: Storing money, cash withdrawal from ATMs (if possible, if not then no big deal), and being able to have pay from work directed to my account. That's all I need.

[Rabi'ya]

If you just want these facilities I would say you should look at a basic bank account with any bank. many of the bank accounts offer no interest, no overdraft and no fees, except for failed direct debits(which is permissible)

[Hamza Asadullah]

I have done some research (been looking for a long time now) but the jargon goes way over my head. That's why I'm asking for help.

My only needs are: Storing money, cash withdrawal from ATMs (if possible, if not then no big deal), and being able to have pay from work directed to my account. That's all I need.

Asalaamu Alaikum, then you should go for a Halifax card cash which has no overdrafts so no interest at all. It is purely for withdrawing money you have in your account and if you do not have the money then it just simply declines. There is an option of online banking but you don't have to take it and you can also make card transactions with it. This is the best account for you so you should go for that inshallah.

And Allah knows best in all matters

[Muhaba]

:sl:

My bank account is with Barclays Its their basic bank account. Unfortunately it doesnt give me a debit card, but no interest paid. no overdraft, telephone and internet banking. all other facilities such as bill payments and direct debits.

I also have a Student account as this has no interest on it. but am hoping to close that by the end of next year as I will graduate then and dont want to incur any charges.

Imo, barclays basic account(or any other basic account) seems to be the most halaal. I dont use Lloyds TSB because of their associtations and the issue with closing certain charity accounts. I dont use RBS due to personal experience, and that involves NatWest.

Im not sure about HSBC, oh and I have an account with Nationwide which serves just right. No interest, no overdraft, but this one does have a debit card facility too.

Theres many out there, as long as your ethical about it and look at features an islamic account needs to have, ie interest(or the lack of)

Can you tell me more about Llyods TSB as well as other UK banks' charity work? do they give charity to unislamic causes?

[Rabi'ya]

http://www.ihrc.org.uk/show.php?id=3812

http://www.interpal.info/archives/1432

http://worldpressnetwork.net/forum/v....php?f=2&t=611

these might help.

[Muhaba]

^thank you for these.

[Rabi'ya]

no probs. im sure there are other unethical banks but at present this is the only one i know about. InshAllah it helps to make an informed decision.