The difference between a fixed rate savings account and a bond.

garmeg

macman said:

Your concern about sharia account fixed rate interest levels is unfounded: there's not, AFAIK, a single UK sharia account that has ever failed to pay out the 'expected profit level' advertised. They're just not allowed to use the 'i' word.

Is it still treated like interest within the £1,000 nil tax allowance?

eskbanker

garmeg said:

macman said:

Your concern about sharia account fixed rate interest levels is unfounded: there's not, AFAIK, a single UK sharia account that has ever failed to pay out the 'expected profit level' advertised. They're just not allowed to use the 'i' word.

Is it still treated like interest within the £1,000 nil tax allowance?

I've always liked the stylish answer given at https://forums.moneysavingexpert.com/discussion/comment/75688627/#Comment_75688627

Allah won't class it as interest but HMRC will

xylophone

Example
https://www.alrayanbank.co.uk/psa

 Does this mean profits from my Sharia-compliant accounts will be tax-free from April?

A: Yes, within your Personal Savings Allowance limits. HM Revenue & Customs (HMRC) has confirmed that profits from Sharia compliant savings accounts will benefit from the Personal Savings Allowance.

NottinghamKnight

In (terest) shallah