The financial requirement for UK family visa application is set out in the immigration rules as a gross annual income of £18,600. It is possible to satisfy the rule with annual salary, savings or other income source. Cash saving is the one way to meet the financial requirement.
How to calculate cash saving
The minimum amount of £16,000 must be held to meet the financial requirement with cash savings.
The cash saving calculation method is calculated to be satisfied using the following basic formula: (Cash Savings £16,000) x (2.5 years) = must be at least £18,600
You must have a savings of £62,500 to meet your cash savings solely.
(£18,600 x 2.5 + £16,000 = £62,500)
If you have a cash saving of less than £62,500, you may partially rely on these savings as long as they exceed £16,000, and make up for the shortfall from other permitted sources of income.
The following calculations meet financial conditions:
£30,000 in cash saving: (£30,000-£16,000) ÷2.5 =£5,600. Additional £13,000 source of income is required to meet £18,600
If you have additional dependent children, the required cash savings increase. Minimum financial requirements increase by £3,800 for first child and £2,400 for further child. For example, applicants with two children will need to show £24,800 and £78,000 using the formula above.
Evidence to show cash saving
Savings can be held jointly in a personal bank account or investment account by the applicant, partner, or couple. Cash savings should be accessible immediately. If savings are spread across multiple accounts, you can use a combination of different bank accounts. Cash savings can be held in a UK bank account or held in an overseas bank account, that financial institution regulated by the appropriate regulatory body in that country. The fund should be demonstrated in the GBP currency conversion rate.
Cash savings held by third parties or family members cannot be used. In order to rely on the cash savings by third parties, the fund must be transferred to the applicant or spouse's account as an irrevocable gift, and held for the required period.
Period of holding the cash savings
Savings must be held personally or jointly by the applicant partner couple for at least six months prior to the date of application. Any evidential bank statement must be dated no earlier than 28 days prior to the date of application. You must submit a personal bank statement indicating that your funding level has not fallen below the required amount.
Combination of cash savings with other forms of income
A shortfall in gross annual income can be demonstrated in combination with cash savings, whether if it’s a salary or non-salary. It can also be made up by any deficit in current gross annual income and non-employment income, such as rental income, dividends, or pension income.
However, pay employment income cannot be combined. There are some flexibilities to meet financial requirements through multiple sources of income. However, care must be taken to ensure that all documents meet the immigration rules.