"Is my pension halal?" "Can I have a Lifetime ISA?" "Is an S&P 500 fund okay?" Money questions are some of the most searched halal questions in the UK — and the good news is that halal options now exist for almost everything. This guide is an overview, not financial or religious advice.
The two rules that matter most
- No interest (riba) — earning or paying interest is forbidden.
- No haram businesses — investments shouldn't be in alcohol, gambling, pork, conventional banking and similar.
Most halal investing comes down to choosing the right account and the right fund inside it.
Workplace pensions: switch, don't opt out
Opting out of auto-enrolment means losing your employer's contributions. Most UK pension providers offer a Sharia-compliant fund — log in and switch to it. More in is a workplace pension halal?
ISAs and the Lifetime ISA
The 25% government bonus on a Lifetime ISA is a grant, not interest, so most scholars accept it. The issue is where the money sits — choose a Sharia-compliant cash provider or a stocks and shares ISA with an Islamic fund. See is a Lifetime ISA halal? and savings account interest.
Shares and index funds
Buying shares in companies with a halal business and low debt is allowed by most scholars. A normal S&P 500 or FTSE tracker includes banks and other haram businesses, so look for an Islamic index fund or ETF instead. Read is investing in stocks halal? and are index funds halal?
What most scholars avoid
- Options, futures and CFDs — see options trading
- Leveraged forex — see forex trading
- Matched betting — see is matched betting halal?
Crypto is debated: read is crypto halal? for the different views.
Buying a home or car
Islamic mortgages and car finance (ijara and murabaha) are available from several UK providers. See is a mortgage halal? and is car finance halal?
For decisions about your own money, speak to a qualified financial adviser and a scholar you trust.
