Cash Savings Route: Complete Guide

How the Cash Savings Route Works

The cash savings route is set out in Appendix FM-SE of the Immigration Rules. It allows applicants and sponsors to use savings in place of (or in addition to) employment income to meet the minimum income requirement for a Spouse visa.

The structure is a fixed £16,000, plus a multiple of whatever the income falls short by. At the first application and the extension the multiple is 2.5, reflecting the 2 years 6 months of permission granted. At settlement the rules expressly remove it.

The savings requirement is separate from the English language requirement, which applies whichever way the financial requirement is met.

Calculating How Much You Need

First Application And Extension

Paragraph E-ECP.3.1(b) of Appendix FM, for entry clearance, and paragraph E-LTRP.3.1(b), for an extension, are worded identically: £16,000, plus additional savings equivalent to 2.5 times the difference between the qualifying income and £29,000.

Savings = £16,000 + (2.5 × shortfall)

With no qualifying income, the shortfall is the whole £29,000:

£16,000 + (2.5 × £29,000) = £16,000 + £72,500 = £88,500

Where a sponsor earns £22,000:

• Shortfall: £29,000 − £22,000 = £7,000
• Savings: £16,000 + (2.5 × £7,000) = £16,000 + £17,500 = £33,500

At Settlement The Multiplier Goes

Rowan previously said the same calculation applies at settlement. It does not, and the difference is large. Paragraph E-ILRP.1.3(1A) of Appendix FM applies the extension savings rule to a settlement application on the 5-year partner route, but adds an instruction: disregard the words "2.5 times".

Savings at settlement = £16,000 + shortfall

• No qualifying income: £16,000 + £29,000 = £45,000, not £88,500
• Sponsor earning £22,000: £16,000 + £7,000 = £23,000, not £33,500

The 6-month holding requirement is unchanged at settlement. Only the multiplier goes.

The 6-Month Holding Period

The savings must have been held in an account for at least 6 months immediately before the date of your application. The Home Office checks this by reviewing bank statements covering the full 6-month period.

Paragraph 11(a) of Appendix FM-SE requires personal bank statements showing that at least the level of savings relied on has been held in an account, or accounts, in the name of the person or of the person and their partner jointly, throughout the 6 months before the date of application. The rule uses the plural "account(s)", so savings can sit across more than one qualifying account.

Paragraph 11A(a) sets what kind of account qualifies: any current, deposit or investment account with a financial institution regulated by the appropriate regulatory body for the country it operates in, provided the account allows the savings to be accessed immediately. A penalty for withdrawing without notice does not disqualify it, and a pension savings account counts where the funds can be withdrawn immediately.

Appendix Finance adds a set of exclusions at paragraph FIN 2.1: funds will not be considered where the decision maker cannot make satisfactory verification checks, where the institution is not regulated by the appropriate body for its country, or where the institution does not use electronic record keeping.

Two Published Exceptions To The Full 6 Months

• Paragraph 11A(c) — funds from investments. Savings transferred from investments, stocks, shares, bonds or trust funds within the 6 months count, provided the funds were in the ownership and under the control of the applicant, their partner or both jointly for the whole of those 6 months, and the ownership, the cash value at or before the start of the period, and the transfer are evidenced.
• Paragraph 11A(d) — proceeds of a property sale. Net proceeds from selling a dwelling, other building or land within the 6 months count, where the property was owned by the applicant, their partner or both at the start of the period and at the date of sale, and where only the share they owned is counted. The proceeds must be net of any mortgage or loan secured on the property and of taxes and professional fees. Here the 6-month period is reduced by the time that passed before the proceeds were deposited.

Paragraph 11A(b) adds that paid-out competition winnings, and a legacy that has been paid, can contribute to cash savings.

Declaring the Source of Funds

The rule here is shorter than most guides suggest, and it is worth reading in its own words. Paragraph 11(b) of Appendix FM-SE requires one thing:

"A declaration by the account holder(s) of the source(s) of the cash savings."

A declaration — not a bundle of source documents for every deposit. Rowan previously listed documentary requirements for inheritances, gifts and legal settlements that do not appear in the rule, and those have been removed.

Where documents are specified is in the two exceptions to the 6-month rule. Paragraph 11A(d)(iv) lists what may satisfy a decision maker that property sale proceeds qualify:

• Registration information or documentation from the Land Registry, or its overseas equivalent
• A letter from the solicitor, or other relevant professional where the sale took place overseas, confirming the sale price
• A letter from the lender on headed stationery about repayment of a mortgage or loan secured on the property
• Confirmation of payment of taxes or professional fees associated with the sale

The equivalent for paragraph 11A(c) is evidence of ownership of the investment, its cash value at or before the start of the 6-month period, and the transfer into the account.

Whose Savings Can Be Used?

• Sponsor's savings: The British citizen or settled person sponsoring the application. Their individual savings in accounts in their name are fully eligible.
• Applicant's savings: paragraph E-ECP.3.2(e) counts specified savings of the applicant and partner, so the applicant's own savings count even on an application for entry clearance — unlike their employment income, which does not. Savings held overseas are converted into pounds sterling under Appendix Finance.
• Joint savings: Savings in a joint account held by both the applicant and sponsor are eligible.
• Other family members: paragraph 11(a) names accounts in the name of the person, or of the person and their partner jointly. An account in a parent's or sibling's name is not one of those. Money gifted into a qualifying account then has to satisfy the same 6-month holding rule as any other savings.
• A dependent child aged 18 or over. At the extension stage, paragraph E-LTRP.3.2(g) also counts specified savings of a dependent child of the applicant or the applicant's partner who is aged 18 or over.

Documents Required

To evidence cash savings for a Spouse visa, provide:

1. Bank statements covering 6 months: Consecutive statements from every account containing the savings, covering at least 6 months before the application date. See our financial documents guide for formatting requirements.
2. A declaration of the source of the savings by the account holder or holders, under paragraph 11(b).
3. Where paragraph 11A(c) or (d) is relied on: the additional evidence those sub-paragraphs specify for investments or a property sale.
4. Currency conversion. Appendix Finance paragraph FIN 1.1 converts foreign currency at the spot exchange rate appearing on www.oanda.com for the date of the application. Two currencies do not appear there — Syrian pounds and the Mongolian tugrik — and those, along with Iranian rials, are converted at the monthly Foreign, Commonwealth and Development Office consular exchange rate for the date of application.

Note that paragraph A1(l) of Appendix FM-SE requires evidence covering a period ending with the date of application to be dated no earlier than 28 days before that date.

Common Mistakes

• Balance dipping below the threshold: Even briefly dropping below the required amount during the 6-month period can invalidate the evidence. Monitor your balance carefully.
• Not holding funds for the full 6 months: Depositing a large sum 5 months before applying, even if the total is correct, will not meet the requirement.
• No source evidence: Failing to explain where the money came from raises suspicion and can lead to refusal. See our visa refusal guide if this happens.
• Funds in the wrong person's account: Savings held by parents or other relatives do not count unless transferred and held for 6 months.
• Using the 2.5 multiplier at settlement. Paragraph E-ILRP.1.3(1A) removes it. Applying £88,500 to a settlement application overstates the requirement by £43,500.
• An account that does not qualify. Paragraph 11A(a) requires immediate access and a regulated institution, and paragraph FIN 2.1 of Appendix Finance excludes funds where the institution does not use electronic record keeping or cannot be verified. Our guide to using an adviser covers when a case warrants one.

Points That Follow From The Rules

• The 6-month clock ends at the date of application. Paragraph 11(a) fixes it that way, so a delay in applying moves the window forward rather than banking extra time.
• Currency risk sits with the applicant. Paragraph FIN 1.1 converts at the spot rate on the date of application. A balance that clears the threshold in local currency one week may not the next.
• Savings can be combined with income. The formula is built around a shortfall, so the two work together rather than as alternatives. Income evidence still has to meet the specified rules for Category A or Category B.
• The fee is separate. The savings requirement is not affected by the £2,064 or £1,407 application fee or the immigration health surcharge, which are paid on top. Our visa fees guide sets those out.
• An exemption may remove the requirement entirely. Where the sponsoring partner receives one of the benefits listed at paragraph E-ECP.3.3, the adequate maintenance test applies instead of the £29,000 figure and the savings formula.

Questions and answers