QIB: what it offers and how your money is protected

QIB is a UK bank that runs its personal accounts on Sharia-compliant principles. In practice that means one thing a reader notices immediately: it does not pay interest on savings and does not charge interest on borrowing, and it does not offer overdrafts at all. The bank states plainly that "the payment and receipt of interest is against Shari'a principles and do not form a part of any contractual entitlement", and that both sides waive any entitlement to recover interest¹.

It offers a personal current account, an instant access savings account, a notice account and a term deposit account, all of them available to individual customers only, and all of them open to joint operation¹. You must be at least 16 to open an account, and you must already hold a current account with QIB before you can open any of its savings or deposit accounts¹.

Money held with QIB is covered by the Financial Services Compensation Scheme. The bank's own compensation scheme document sets out the limit that applies, and the bank's terms confirm that most depositors are eligible, including individuals, sole traders and small firms, while large companies are not covered². The bank's compensation scheme document is the source for the figures².

QIB accounts: current, instant access, notice and term deposit

QIB's personal range is small and built around one current account with three savings options behind it. The current account is the entry point: you cannot open a Personal Instant Access Savings Account, a Personal Term Deposit Account or a Personal Notice Account until you already have a current account with the bank¹.

The savings side splits by how quickly you can reach your money. An instant access account lets you take money out whenever you want, which is the same shape as the instant access accounts offered across the market⁵. A notice account requires you to give notice before withdrawing, and the notice period on the QIB product is 31 days⁵. A term deposit locks the money away for a fixed period, and QIB states that the 14-day cancellation period does not apply to a Personal Term Deposit Account¹. That is the trade-off a reader should weigh: the term deposit gives up the right to change your mind, and the notice account gives up instant access.

Because QIB does not pay interest, the return on these accounts is not expressed as a rate. If you are weighing a QIB savings account against an ordinary one, the comparison is not like for like, and the bank's own site is the place to see how its products are priced today.

You can read more about how these account types work generally in the current accounts guide and the savings accounts guide.

How Sharia-compliant banking works at QIB: no interest, no overdrafts

The single most important thing to understand about a QIB account is what is missing from it. QIB states that "as a Shari'a-compliant bank, we do not provide overdraft facilities, nor pay or charge interest on accounts, including our Current Accounts"¹. Which? magazine's guidance on Islamic finance confirms the pattern across the sector: Islamic banks do not offer overdrafts, because both charging and paying interest are not considered Sharia-compliant⁶.

That has practical consequences that run in both directions. On the plus side, an account with no overdraft facility cannot generate overdraft interest, and there are no fees for returned direct debits or standing orders in the way a basic bank account works⁷. On the minus side, there is no buffer if a payment would take you past your balance.

The absence of interest also means a QIB savings account does not work like a conventional one. You will not see interest credited, and there is no rate to compare. If you want a savings account that pays interest, that is a different product from a different kind of provider, and the savings guide sets out how those work.

Fees and charges: how QIB prices its services

QIB publishes a tariff setting out what it charges for, and the pattern is that everyday banking is free while anything out of the ordinary carries a fee. Opening an account is free⁵.

Card use is priced separately. QIB makes no charge of its own for a debit card payment in pounds, whether at a point of sale or an ATM, though the ATM operator may charge you⁵. The bank also states that there is a daily limit on how much cash you can withdraw using your card, for your protection¹.

Some charges are triggered by things going wrong rather than by a service. QIB also reserves the right to impose a minimum or continuing opening balance on any of its accounts at its discretion¹.

The bank gives notice before charges change. It states it will notify you personally not less than 60 days before a new charge or a change to an existing charge comes into effect¹. If you want today's figures rather than the ones above, the bank's own tariff is the place to check, because charges are set by the provider and can change.

Who can open a QIB account

QIB's accounts are for individuals only. The bank states that "the Accounts are only available to individual customers (you cannot open an Account if you are a business entity or an institution), and they may not be used for business purposes"¹. You must be at least 16 years old¹.

Joint accounts are allowed, and generously so: QIB states that all of its accounts can be operated as a joint account and that there are no limits on the number of joint account holders that can be added to any of its accounts¹. That is wider than many providers, where a joint account is typically opened with one other person⁹. It is worth knowing what a joint account does to your finances before you add someone: opening one adds a financial link, so companies look at both people's credit histories, and a poor history on one side might lower the chances of acceptance for the other⁷.

There is also a set-off rule that matters more on a joint account than a sole one. QIB states that on a joint account its right of set-off lets it take money from the account to pay a debt owed by one or more of the account holders, or by one or more of them together with someone else¹. In plain terms, money in a joint account is not ring-fenced from a problem on the other holder's side.

QIB may also ask you for information and expects you to provide it promptly. The bank states that if you fail to provide requested information, it may delay or refuse to process your payments or block access to your account¹.

Opening an account and the cooling-off period

The route in is a current account first. QIB states that to open a Personal Instant Access Savings Account, Personal Term Deposit Account or Personal Notice Account, you must already have opened a current account with the bank¹. You will need proof of identity showing your full name and current address¹⁰.

Once an account is open, you have a cooling-off period on some products but not all. QIB gives 14 days on a Personal Current Account, a Personal Instant Access Savings Account and a Personal Notice Account¹. A Personal Term Deposit Account is excluded: the bank states that the 14-day cancellation period does not apply to it¹. So the product where you most need to be sure before committing is the one where you cannot change your mind afterwards.

If QIB changes its terms or charges, you get a second chance to leave. The bank states that for a period of 60 days from the date of its notice, you have the right to switch or close your account without loss of profit or any additional charges for closing it¹. Citizens Advice puts the same rule in consumer terms: you can close the account at any time up to 60 days from the day you were told about the changes⁸.

Payments, cheques and card use

QIB sets out how quickly different kinds of payment move. A Faster Payments instruction will usually reach the institution holding the payee's account within two hours of the bank receiving your instruction¹. Other sterling or euro payments that are not paper-based are credited by the end of the working day following the one on which QIB receives your instructions, and paper-based sterling or euro instructions by the end of the second working day after receipt¹. Money coming in by electronic transfer is credited to your account the same day¹.

There is a cut-off. Payment instructions received after 3.30pm on a working day are treated as received on the next working day¹. For a UK sterling cheque issued by and deposited with QIB, if it is paid in over the counter at the branch before 12pm, the money is added to your balance on the second working day¹.

The debit card is a Mastercard, issued by PSI-Pay Ltd under licence from Mastercard International⁴. A replacement card can be collected from the QIB branch within 5 days, or the bank can arrange to send it to your home address⁴. You activate it by sending an SMS to a number the bank gives you, from the mobile number you registered with QIB⁴. Your PIN is always needed for payments over £45⁴. Some merchants are blocked outright: the card cannot be used for dating or escort services, or for betting including lottery tickets, casino chips, off-track betting and wagers⁴.

QIB's own security guidance is to use only secure websites, meaning addresses beginning with https, when buying online, and to read your statements carefully and tell the bank about any transaction you do not recognise¹¹.

When QIB can change terms, take money or close an account

QIB builds several rights into its terms, and they are worth knowing before you need them. On changes to its general personal conditions or account specific conditions, the bank states it will give you not less than 60 days' notice before the change takes effect¹. The same 60-day notice applies to new charges or changes to existing charges¹.

The bank can also close your account. It states that if it wants to close your account or stop any of your services, it may do so by giving you at least two months' notice in writing, unless there is good reason to end things earlier, such as a serious breach¹.

Set-off is the right that lets QIB reach into your money. The bank states that it can use any money you have in any of the accounts you hold with it to repay or reduce an amount you owe¹. On a joint account, that right extends to debts owed by one or more of the account holders, or by one or more of them together with someone else¹. QIB states it will give you 14 days' notice before exercising the right of set-off¹.

QIB can also transfer its side of the arrangement. It states that it may transfer any of its rights and obligations under the conditions and in relation to the account to another party, while you may not transfer your rights or obligations unless it is permitted or agreed in writing¹. The terms are governed by English law, and claims can be brought in any UK court wherever you live¹.

Complaints and the Financial Ombudsman

QIB's complaints route starts with your Relationship Manager. If the complaint cannot be resolved within three working days, the Complaints Manager will contact you in writing⁴.

The bank has eight weeks to resolve a complaint, and it states that it will try to do so as quickly as possible³. Where a complaint is resolved within three business days, QIB issues a Summary Resolution Communication setting out the investigation steps, the outcome and your right to refer the matter to the Financial Ombudsman Service³. Complaints relating to the Payment Services Directive are handled to a different timetable: 15 business days, extendable to a maximum of 35 business days in exceptional circumstances³. Complaints that are not about payment services get a resolution update within four weeks³.

If you are not satisfied with how QIB handles your complaint, you may be able to refer it to the Financial Ombudsman Service¹. The deadline matters: QIB states you may contact the ombudsman within 6 months from the day you received the Final Response Letter, Summary Resolution Communication or other letter explaining why the complaint cannot be resolved³. The ombudsman service is free to consumers and looks at complaints about banking and payments, including regular payments such as direct debits and standing orders¹².

Dealing with a QIB account after a death

QIB asks to be told once. The bank states that you only need to tell it once that someone has passed away, and that once you have told it about the death, it will stop any further communication with the account holder¹⁰.

You will need paperwork. QIB requires proof of death, either the original death certificate or a certified copy, and proof of identity for the people dealing with the estate, in the form of a passport or driving licence¹⁰. Your own proof of identity must show your full name and current address¹⁰. Documents can be brought in person, sent by email or posted¹⁰.

QIB will only discuss account information with certain people: the next of kin, such as a parent or family member; an executor of the will; a personal representative if there is no will; or a legal representative¹⁰.

Two things are worth knowing about the wider picture. A bank may temporarily stop access to an account after someone dies, but it might still release money for funeral costs¹³. And where an account continues to hold money, the balance becomes part of the estate, which is why executors may need to deal with inheritance tax reporting as well¹⁴.

FSCS protection for QIB savers

Eligible deposits with QIB are protected by the Financial Services Compensation Scheme². The bank states that deposits made with QIB (UK) are covered by the FSCS, and that most depositors are eligible, including individuals, sole traders and small firms, while large companies are not covered¹.

The limit is set out in the bank's compensation scheme document, which gives a figure for an individual and a higher figure for a joint account, per depositor per bank². If the bank failed, the reimbursement period stated is 20 working days, and reimbursement would be made in pounds sterling².

Two limits are worth stating firmly. The protection is per depositor per bank, so money held across accounts with QIB counts together towards the same limit rather than being protected separately account by account². And the scheme does not cover everything: aviation insurance claims and credit insurance claims are among the categories that are not eligible for FSCS protection¹⁵. If you hold more than the limit with one bank, the excess is not covered.