Typical Shariah-compliant current accounts do not charge or pay out any interest.  There is no overdraft facility available, but if an overdraft is incurred an administration fee is charged.

Lloyds TSB Islamic Financial Services is hitting the road this week, with a series of events showcasing the range of financial products it now offers to the Muslim community.
The products — an Islamic current account and mortgage — are designed to meet the banking needs of the UK's two million Muslims, for whom interest is forbidden, and are now available in more than 30 Lloyds TSB branches.

The Children’s Mutual, the UK’s only provider specialising exclusively in long-term savings for children, has today announced that it will be launching the first Child Trust Fund (CTF) Stakeholder account that is compliant with the Shariah.
Ivan Lewis MP, Economic Secretary to the Treasury and Dr Akber Mohamedali, Treasurer of the Muslim Council of Britain, will attend the launch and be available for questions with David White, Chief Executive of The Children’s Mutual, on June 29.

* Residential leasehold flats now qualify for Amanah home finance
* Minimum balance requirement on Shariah current account reduces to £250
HSBC Amanah - HSBC’s Islamic finance division launched in 1998 - introduced UK customers to the high street’s first Shariah home purchase scheme and current account in July 2003. Since then over 1,500 people have applied for £176 million of Amanah home finance and more than 1,000 Shariah current accounts have been opened. HSBC was also the first UK bank to offer trustees a Shariah pension fund in April 2004; it is now offered by over 10,000 UK employers as part of their stakeholder pension provisions.

Lloyds TSB has launched an Islamic home finance offer to help Britain's Muslims purchase their own homes.
It is one of a range of financial services which Lloyds TSB plans to launch for the Muslim community in the UK - many of whom have taken a traditional, interest based mortgage or choose not to buy their own homes, for religious reasons.

The Council of Mortgage Lenders today broadly welcomed the Chancellor’s Budget announcements on the housing and mortgage markets.
The CML is pleased that the Chancellor did not raise stamp duty, and is particularly pleased that double stamp duty on Islamic mortgages will be resolved. But the CML would have liked to see the thresholds raised, and continues to believe that longer term fundamental reform away from the existing "slab" structure of stamp duty is needed.

LLOYDS TSB has launched an Islamic current account to help cater for the banking needs of the UK's 2m Muslims.

It is the first step towards offering a dedicated range of Islamic financial services to Muslims who until now have used conventional current accounts or opted out of traditional banking services altogether, the bank said.