Islamic Savings Accounts

Secure savings, ethical investments

Our Islamic Savings Accounts have been developed according to the Islamic principle of ‘Mudaraba’.

In accordance with Mudaraba, you, the customer (or Rab-ul-Mal), deposit your funds with us, the financial manager (or Mudarib). We provide the financial expertise required to manage and invest your funds in a way that complies with Shariah principles.

The profit generated from these ethical and Shariah-compliant investments is then distributed among the depositors, which means there is no element of interest – or Riba – involved in the transaction.

This Information Sheet sets out the key information you need to know about your account. It should be read together with the Islamic Account Terms and Conditions and forms part of our agreement with you. Please keep it for future reference.

Summary Box - Islamic Fixed Term Deposits Accounts:

Account Name: Islamic Fixed Term Deposit (Islamic FTD)

Expected Profit Rates are shown in the table below:-

The profit rate may change from time to time and such changes will be published on our website.

GBP Fixed Term Deposits
6 Month 0.15%
1 Year 0.60%

Expected Profit Rates are correct as at 18.03.2019

Your Profit Share will be calculated at the Calculation Date but will be paid at the end of the term (at maturity).

Profit is calculated on each Calculation Date for each Calculation Period and is paid at maturity and is determined by reference to the profit share set out in Clause 4 and 5 of Islamic Accounts Terms and Conditions.

"Calculation Date" means the last working day in each calendar month.
"Calculation Period" means a monthly period equivalent to a calendar month or any specific number of days or months as mentioned in the account product details.


As per Shariah guidelines, the profit rate may change from time to time and such changes will be published on our Website (

Clause 4 and 5 of Islamic Accounts Terms and Conditions explains how profit rates can change.

Below is an example of what the future balance might be after profit has been paid.

GBP Islamic Fixed Term Deposits
6 Month £2,000 0.15% £2,001.50
1 Year £2,000 0.60% £2,012.00

Assumptions taken for above calculations;

  • Calculations based on deposit of £2,000
  • No change in the amount (no deposits, no withdrawal)
  • No change to the profit rate during the fixed term

These projections are provided for illustrative purposes only and do not take into account individual circumstances.


You must;

  • be aged 18 or over

Minimum/Maximum Balance:

  • No Minimum or Maximum balance requirement

How to open the account:

Download the application form and complete and return it:

  • In Branch
  • Via post (United Bank UK Central Operations, 391-393 Stratford Rd, Birmingham B11 4JZ)
  • Online (available from time to time)

How to manage the account:

  • In Branch
  • Via post
  • UBL Net Banking (account operation limited to viewing only)

If you decide to withdraw/close the Term Deposit Account within the first 14 days of opening it, then We will close your Account on receipt of the instructions and repay all of the money you invested with us with profit calculated in line with clause 7.5 of Islamic Account Terms and Conditions, without undue delay (usually within 2 business days providing your money did not incur any losses in the 14-day period).

If you decide you wish to close your Term Deposit Account after the first 14 days have elapsed but before the Maturity Date, the following will apply:

a) We will not generally permit you to withdraw (complete or partially withdraw) money or close your Term Deposit before the Maturity Date.

b) If, at our discretion under extenuating circumstances, we allow you to withdraw (complete or partially withdraw) money or close the account before the Maturity Date, this may result in a reduction in the profit as mentioned in clause 7.5 of Islamic Account Terms and Conditions providing your money did not incur any losses.

The relevant reduction in profit when a deposit is withdrawn before maturity and/or required Notice is set out in the table below:

6 Month 50% reduction in total profit calculated
1 Year 50% reduction in total profit calculated

We will however allow money to be withdrawn or the Account to be closed without reduction in profit in the event of death of the Account holder (or any of the joint Account holders).

a) In these circumstances, if there is a request to do so, we will repay the deposit amount and any profit earned up to the date of early withdrawal or closure.

b) Any surviving Joint Account holders may request that the investment be continued until the date of maturity.

At maturity, if you instruct us to close your Account, you must provide us with the account details of where you wish the matured funds to be paid into at least one business day before the Maturity Date. If your Account was opened online, we will return the matured funds back to your nominated account.

If you do not give us any instructions before the Maturity Date or we cannot reasonably comply with your instructions, upon the expiry of the term, the balance of your Term Deposit Account will be rolled over and invested as a new deposit for a new term of the same duration. Any such reinvestment will be made at the prevailing expected profit rate for that term. Any such reinvestment will be on the Maturity Date if it is a Business Day or if not, on the Business Day immediately following. We will send you a confirmation if we reinvest your money.

The UBL UK Islamic Accounts are interest free. All money deposited will be maintained and invested in accordance with Shariah rules and requirements. Profits will be distributed to the holders of Islamic Savings Accounts and Term Deposit Accounts in accordance with the guidance of the Bank’s Shariah Advisor.

We (UBL UK and the Depositor) both recognize and agree that the payment and/or receipt of interest are against Shariah principles and consequently this agreement does not involve the payment or receipt of interest. We (UBL UK and the Depositor) both agree with each other that neither of us will in any proceedings against the other, claim interest from the other and we both expressly waive and reject any entitlement to recover interest from the other.

Our all Islamic savings accounts are based on the Islamic financial principle of Murdaraba

  • A partnership in which one party provides the capital and the other provides the expertise.
  • The capital provider is called the ‘Rabb-al mal’ and the expert is called the ‘Mudarib’.
  • The Mudarib invests the Rabb-al mal’s money to generate profit, which is not guaranteed.
  • The actual profit generated by the Murdarib is shared between both parties according to a pre-agreed ratio.
  • Any loss in the capital is borne by the Rabb-al-mal, except when there is any proven negligence, fraud, and breaching of the agreed terms and conditions by Mudarib.
  • It is a Shari’ah requirement that the mechanism for distributing profit must be clearly defined in a way that eliminates uncertainty and any possibility of dispute.

This account can be held in single or joint names.

Profit will be paid using the Gross Rate and tax will not be deducted where your profit is exempt.

Gross rate means we won’t deduct tax from the profit we pay on money in your account. It’s your responsibility to pay any tax you may owe to HM Revenue & Customs (HMRC).

AER stands for Annual Equivalent Rate and illustrates what the profit rate would be if profit was paid and compounded once each year. As every advertisement for a savings product which quotes profit rate will include an AER, it makes it easier for you to compare what return you can expect from your savings over time.

Applications and downloads

Please select the links below for our Product Specific and General Terms and Conditions:

To find out more, Contact us on 0121 753 6000 or visit your nearest branch.