Halal Savings Account USA (2026): Stearns, UIF, Whittier and Jafari Compared

Four US institutions take riba-free consumer savings with federal deposit insurance: Stearns Salaam Banking, a division of Stearns Bank N.A.; UIF Corporation's profit-sharing accounts held at University Bank; Bank of Whittier N.A.; and Jafari No-Interest Credit Union. Only Stearns publishes a rate sheet. As of October 1, 2026 its Salaam Personal Market Savings pays an expected 0.85% below $100,000, 1.97% APY from $100,000 and 2.99% APY from $500,000, and its Salaam CDs pay 3.85% to 3.94% APY with a $500 minimum. UIF and Bank of Whittier disclose their anticipated rate when you apply, and Jafari's savings account pays nothing. Devon Bank, often listed as halal, pays interest on its savings products and is covered below for that reason. Start with the halal savings accounts hub for the structures, then use this page for the live accounts.

How a profit-sharing deposit differs from an APY

A conventional savings account promises a fixed interest rate on your balance. A profit-sharing deposit gives you a share of what the bank earns on a segregated pool of Shariah-compliant financing, so the return is expected or anticipated, not guaranteed. Stearns puts it in its rate sheet language: the Expected Profit Rate and Expected APY may change after account opening, and fees could reduce earnings. UIF goes further in its deposit FAQ, stating that under its investment agency structure (AAOIFI Shariah Standard 46) you may be paid more than the anticipated rate if the asset pool outperforms, less if it underperforms, or no profit at all in a bad period.

Your principal is a different matter. In every account on this page the deposit itself sits in an FDIC-insured bank or NCUA-insured credit union up to $250,000 per depositor, per institution, per ownership category. UIF's Shariah board has ruled that accepting FDIC coverage is permissible because the FDIC is a third party to the depositor and the bank. So the risk you take is a variable return, not a lost deposit. Our explainer on profit-sharing and time deposits, linked from the savings hub, covers the mudarabah and wakalah contracts in detail.

Stearns Salaam Banking: the only published rate sheet

Stearns Bank runs Salaam Banking as a division of Stearns Bank N.A., an OCC-chartered national bank founded in 1912 in St. Cloud, Minnesota, with $3.27 billion in assets and $2.39 billion in deposits at June 30, 2026 according to FDIC BankFind. Salaam deposits are not invested in interest-bearing instruments and are kept separate from interest-bearing deposits; the expected profit is derived from Stearns' Islamic financing portfolio. A three-scholar Sharia Supervisory Board, Mufti Ibrahim Essa, Shaykh Taha Abdul-Basser and Mufti Mirza-Zain Baig, issued a Certificate of Sharia Compliance for the Salaam checking and savings accounts in June 2024, citing AAOIFI standards.

Two details from the October 1, 2026 rate sheet matter for ordinary savers. First, the standard Market Savings rate below $100,000 is low at 0.85%, so a $20,000 balance earns roughly $170 a year; the Profit-Link account pays 2.02% APY on the same balance but is built around donating a portion of your expected return to a nonprofit of your choice (the current $200 bonus requires a $1,000 average balance, six consecutive monthly donations of at least 25% of expected returns, and enrollment by December 31, 2026). Second, the 3 and 6 month CDs can be funded throughout the term and carry no discount for early withdrawal, while the 12 and 18 month CDs may have a discount applied if you withdraw early. The 18 month CD pays 3.66% APY. Our Stearns Salaam Banking review goes through the checking side and the app.

UIF profit-sharing savings and time deposits through University Bank

University Islamic Financial is not a bank. It is a faith-based subsidiary of University Bank of Ann Arbor, Michigan, a state-chartered FDIC member with $1.24 billion in assets at June 30, 2026, and it holds your deposit at the bank under an agency agreement. The Profit-Sharing Savings Account opens with $100, charges no one-time or monthly fees, comes with an ATM card and the MyUIF app, and credits profit monthly. The Profit-Sharing Time Deposit comes in 12, 36 and 60 month terms with a $5,000 minimum, a jumbo tier above $100,000, a $2,000,000 maximum, and quarterly profit paid by check or reinvested.

UIF's static pages do not print the anticipated profit rate; the figure loads inside the online application and is written into your Account Agreement and Disclosures, so you will see it before you commit but not before you start the form. Profit comes from UIF's own residential, commercial and vehicle financing portfolio. Accounts are available to consumers nationwide and can be funded by debit card up to $2,500, ACH up to $25,000, or wire above that. Time deposits allow no withdrawals in the first seven days and no partial withdrawals before maturity; closing early forfeits the profit accrued in that calendar quarter. Our UIF savings account review covers the fatwa, the board and the LARIBA merger.

Bank of Whittier: a whole bank run riba-free

Bank of Whittier N.A. is the only US bank whose entire balance sheet is described as riba-free. FDIC BankFind lists it as an OCC-chartered national bank established in 1982 with $152.6 million in assets, $125.2 million in deposits and two offices at June 30, 2026: Whittier, California and Richardson, Texas. Its site lists an AMANA Demand Deposit Checking account, RF Income Generating Checking, RF Income Generating Savings and an RF Certificate of Deposit, plus traditional and Roth IRA savings and a 401(k) profit-sharing account, and says it serves all 50 states with no ATM fees at Citibank ATMs.

What we could not find on the pages we reached: a rate sheet, minimum balances or fee schedule for the RF savings and CD accounts. The site has a CD Rate link and Express Banking application links for personal accounts, so the numbers exist but are not printed on the home page. Treat Bank of Whittier as quote-on-application and ask for the current RF savings and CD rates, the minimum opening deposit, any monthly fee and whether out-of-state customers can open fully online. American Finance House LARIBA, the Whittier finance house whose riba-free model the bank follows, merged into UIF Corporation on April 1, 2026; the bank itself continues to operate under its own charter.

Jafari No-Interest Credit Union: insured savings that pay nothing

Jafari No-Interest Credit Union in Houston began operations in early 2016 with Texas Credit Union Department and NCUA approval, and member deposits are NCUA-insured to $250,000. The savings account needs $200 to open and a $50 minimum balance, and carries a monthly fee of $3 if you have no loans or your savings exceed your loans, rising to $12, $30 or $60 as a member's loan balance exceeds savings. Deposits and withdrawals are by ACH only: no cash, no ATM, no debit card, no checks. The site describes no dividend or profit on savings; the deposit base exists to fund 0% loans to members, and as of July 2026 the credit union had 370 members and $2.19 million in deposits.

Membership is limited to people who attend certain Jafari community centers in Houston, Dallas and Austin, plus family members anywhere in the US, so most readers cannot join. For those who can, this is a sadaqah-like place to park money rather than a return-seeking account, with the benefit that a member's savings reduce the monthly fee and open the door to refinancing of auto, student or home loans up to $35,000 at 0%.

Why Devon Bank is not on the halal deposit list

Devon Bank in Chicago is a genuine Islamic financing provider: an FDIC-insured bank with $418.6 million in assets that offers murabaha and ijara home and commercial financing, with murabaha listed in 34 states, under a fatwa from the Shariah Supervisory Board of America. Its deposit side is conventional. The Savings Accounts and CDs page describes the Passport Savings account as a tiered-rate interest-bearing account, the online-only Legato Saver as paying 2.70% APY on balances up to $500,000 as of September 18, 2026, and its CDs as paying fixed interest. The checking page lists interest-earning Tiered NOW and money market accounts. Nothing on the site describes a profit-sharing or riba-free deposit, so a Muslim who banks at Devon for a mortgage still needs one of the four institutions above for savings, or must purify the interest.

All four riba-free accounts side by side

FDIC versus NCUA and what segregation means in a conventional bank

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UIF

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FDIC and NCUA insurance work the same way for a saver: $250,000 per depositor, per insured institution, per ownership category, backed by the federal government. The question Muslims ask is what happens to a segregated Islamic program inside a conventional bank. Stearns states that Salaam funds are kept separate from interest-bearing deposits and are not invested in interest-bearing instruments; UIF states that profit-sharing funds are segregated from any interest-bearing assets and deposits at University Bank. In both cases the legal depositor relationship is with the bank, so if the bank failed the FDIC would cover the Salaam or UIF balance like any other deposit. Segregation protects the halal character of the return; the FDIC protects the principal.

Balances above $250,000 need planning. Stearns says it offers customized solutions to extend FDIC coverage well beyond the limit, which in practice means a reciprocal deposit network; ask whether the extended coverage keeps your money in Salaam-eligible pools. UIF's time deposits accept up to $2,000,000 per account, so a couple using joint and individual ownership categories can insure more than a single account would allow, but confirm the arithmetic with University Bank before funding. Jafari's $2.19 million total deposit base makes large balances impractical there.

Which accounts you can open from any state

• Stearns Salaam: online application for personal accounts, rate sheet marked Operating Nationwide; mobile banking with bill pay, transfers and mobile wires.
• UIF: online self-serve application open to consumers nationwide; funding by debit card to $2,500, ACH to $25,000, wire above that; ATM card and MyUIF app.
• Bank of Whittier: site states it serves all 50 states and offers Express Banking applications and a mobile app; confirm whether identity verification can be completed without visiting Whittier or Richardson.
• Jafari: membership through listed Jafari centers in Houston, Dallas and Austin or a family relationship; all transactions by ACH, offices open by appointment.

How to move a $20,000 emergency fund out of a conventional HYSA

• Open the new halal account first and fund it with a small test transfer, so you are never without access to cash during the switch.
• Decide the split: at Stearns, $20,000 in Market Savings earns 0.85% but the same money in a 6 month CD earns 3.94% APY with no early withdrawal discount, so a ladder of 3 and 6 month CDs keeps liquidity and lifts the return.
• At UIF, read the anticipated profit rate in the application before funding; if it beats Stearns' Market Savings tier for your balance, the $100-minimum savings account with ATM access is the simpler home.
• Transfer by ACH in tranches under each institution's limit ($25,000 at UIF) and keep the conventional account open for one statement cycle to catch stray debits.
• Note the accrued interest paid on closing the old account and give it away without expecting reward; do not count it as your own.
• Set alerts in the new app, record the anticipated rate and date, and recheck the published rate every quarter, since expected profit rates change.

The one trade-off to accept is yield. A conventional HYSA paying more than Stearns' 0.85% entry tier exists, and Devon's own Legato Saver pays 2.70%. The halal accounts here are competitive at the CD end and at balances above $100,000, and weaker for small liquid balances. Our emergency fund guide, linked from the savings hub, weighs the sukuk fund alternative for the portion you will not touch for a year.

The decision: where a $20,000 emergency fund should go

A saver anywhere in the US who wants published numbers, a national bank and no minimum should open Stearns Salaam: keep three months of expenses in Market Savings for instant access and put the rest in 3 and 6 month Salaam CDs at 3.90% to 3.94% APY, which can be funded throughout the term and withdrawn without discount. A saver who already has a UIF home or car contract, or who prefers the AAOIFI-structured agency model and a board that includes Sheikh Nizam Yaqubi, should open the UIF Profit-Sharing Savings Account and compare the anticipated rate shown in the application with the Stearns tiers before funding. A Texas or Southern California saver who wants a whole-bank riba-free relationship should call Bank of Whittier for its RF savings and CD rates, since they are not published online. Jafari is for eligible members who want to fund 0% community loans, not for yield. Whatever you choose, do not leave the money at Devon Bank or any conventional bank for the convenience; the interest is the problem the whole exercise exists to solve. The bank accounts hub lists checking options to pair with each.

Facts checked against stearnsbank.com, myuif.com, bankofwhittier.com, jafaricu.com, devonbank.com, fdic.gov on September 19, 2026.

Frequently asked questions

Which is the best halal savings account in the USA?

For most people it is Stearns Salaam Banking, because it is the only riba-free account with a published rate sheet, no minimum, FDIC insurance through a $3.27 billion national bank and online opening nationwide. Its Market Savings pays 0.85% below $100,000 and its 6 month CD pays 3.94% APY. UIF's profit-sharing savings is the main alternative; its anticipated rate is shown during the application.

Are halal savings accounts FDIC insured?

Yes, for Stearns Salaam, UIF (through University Bank) and Bank of Whittier, all FDIC members, and Jafari deposits are NCUA insured. Coverage is $250,000 per depositor, per institution, per ownership category. The insurance protects the principal; the profit-sharing return is variable and not guaranteed, which is exactly what distinguishes these accounts from interest.

Is the profit rate on a halal savings account guaranteed?

No. Stearns labels its figures Expected Profit Rate and Expected APY and says they may change after account opening. UIF calls its figure an anticipated return and states you could be paid more, less or nothing depending on how its financing portfolio performs. Your deposit is insured; the return is a share of real profit.

Does Devon Bank offer a halal savings account?

No. Devon Bank is an FDIC-insured provider of murabaha and ijara financing, but its savings accounts and CDs are interest-bearing; the online Legato Saver paid 2.70% APY as of September 18, 2026. A Devon mortgage customer who wants riba-free savings should use Stearns Salaam, UIF or Bank of Whittier for deposits.

Can I open a halal savings account online from any state?

Stearns Salaam and UIF both accept online applications from consumers nationwide; UIF funds by debit card up to $2,500, ACH up to $25,000 or wire. Bank of Whittier says it serves all 50 states and offers online applications, but confirm the identity-verification process. Jafari requires membership through specific Jafari centers in Texas or a family link to a member.

How much does $20,000 earn in a halal savings account?

At Stearns' October 1, 2026 rates, $20,000 in Salaam Personal Market Savings earns about $170 a year at 0.85%, while the same amount in a 6 month Salaam CD at 3.94% APY earns about $790 a year if rolled over at the same rate. UIF's figure depends on the anticipated rate shown in your application. All of these are expected, not guaranteed, returns.