Current accounts
If the account pays no interest, does not run an interest-bearing overdraft, and you are not placing money there to earn a return, many scholars treat it as a loan (qard) to the bank that you may use for payments. The discomfort is what the bank does next with the pool.
Al Rayan Bank and Gatehouse Bank offer Shariah-reviewed current or payment accounts in the UK. FSCS protection up to £85,000 still applies to eligible deposits with PRA-authorised banks — Islamic or not. That is a regulatory fact, not a religious one.
“Expected profit” savings
Islamic savings in Britain are usually wakala (you appoint the bank as agent to invest in Shariah-compliant assets) or commodity murabaha. The rate you see advertised is an expected profit rate, not a contractual interest coupon. If the bank underperforms, it should not simply dip into a hidden interest book to make you whole — read the product information.
If a “halal saver” guarantees a fixed return on cash with no asset and no agency, treat it as a loan with increment until the documents prove otherwise.
Overdrafts, sort codes, and payroll
An arranged overdraft is a loan with interest. Do not use it. If your employer can only pay a high-street sort code, a 0% current account used as a pipe, with the balance swept to an Islamic account, is a common practical setup.
Premium Bonds and prize-linked savings are qimar (gambling) for most scholars: you stake money for a chance of a prize. NS&I income bonds are conventional riba. National Savings is not a religious authority.