Cash savings and the financial requirement under Appendix FM

Cash savings may be relied upon to meet the whole or part of the financial requirement under Appendix FM of the Immigration Rules.

An amount based on cash savings above £16,000 may be counted towards meeting the financial requirement. Cash savings can be combined with salaried and non-salaried employment, non-employment income and pension income in order to meet the financial requirement. However, cash savings cannot be combined with self-employment income or income from employment as a director of a specified company.

At the entry clearance/initial leave to remain and further leave to remain stages, the amount of cash savings above £16,000 must be divided by 2.5 (which reflects the two and a half year period of leave granted) to give the amount required to satisfy the immigration rules.

By way of an example, an applicant with no children will need to show a gross annual income of £18,600. If the applicant’s partner has a gross annual income of £15,000 received from their salaried employment, they will need to show savings of £25,000. This is calculated as follows; the shortfall between their income and the financial threshold is £3,600. This shortfall must be multiplied by 2.5 to reflect the two and a half year period of leave, which gives an amount of £9,000. Only cash savings held above £16,000 can be counted; £9,000 + £16,000 = £25,000.

If the applicant’s partner has no income from employment or elsewhere, the level of savings required to satisfy the financial requirement will be £62,500 (£18,600 x 2.5 + £16,000).

Savings must be held in cash in a personal bank account or savings account in the name of the applicant, the applicant’s partner or in joint names. The savings can be from any legal source, for example a gift from a relative or friend, provided that the source of the savings is declared as part of the application.

The savings must have been held by the applicant, their partner or the couple jointly under their own control for a period of at least six months before the date of application. Any savings which are not in pounds sterling (GBP) will be converted using the closing spot exchange rate which appears on www.oanda.com on the date that the application was made.

Appendix FM-SE sets out very specific requirements as to the documentary evidence which must be provided with the application in order to count cash savings towards meeting the financial requirement.

For more information on the financial requirement under the Immigration Rules, or to discuss an application under Appendix FM of the Immigration Rules then please contact our experienced immigration barristers based in Covent Garden, London on 0203 617 9173 or by email; info@richmondchambers.com.