Key Points
- Savings alone: £88,500.
- Only savings above £16,000 count.
- The money must have been held for at least 6 months.
- Savings can top up employment or pension income, but not self-employed income.
When savings can be used
Savings can be used where they are held in cash in a personal account by the applicant, the sponsor or both jointly, and are under your control. The account can be in the UK or overseas, provided the institution is regulated and not excluded.
How savings interact with income
The first £16,000 of savings is disregarded. The amount above £16,000 is divided by 2.5, and the result is treated as annual income.
Put the other way round: you need £16,000 plus two and a half times the shortfall in your income.
Worked examples
The examples use the £29,000 requirement. Transitional cases on the earlier threshold use the same method with a lower target.
| Annual income counted | Shortfall | Savings needed |
|---|---|---|
| None | £29,000 | £88,500 |
| £20,000 | £9,000 | £38,500 |
| £25,000 | £4,000 | £26,000 |
| £27,000 | £2,000 | £21,000 |
Ownership and holding period
The savings must have been held by you or your partner for the full six months before the application, and the balance must not drop below the amount you need at any point in that period.
Source of funds
The Home Office can ask where the money came from. A gift from parents is acceptable if it is a genuine gift and has then been held for six months. A loan is not. Proceeds from selling a property, shares or other investments can be counted sooner, with evidence of the sale and of your ownership before it.
Bank evidence
- Statements for each account covering the full six months
- The account holder's name and the bank's name on every statement
- A written declaration about the source of the savings
- Evidence of any gift, sale or transfer behind large deposits
Savings at settlement
When you apply for Indefinite Leave to Remain the calculation is more generous: the amount above £16,000 is counted in full, without dividing by 2.5.
Frequently Asked Questions
Can I use money in shares, an ISA or a pension pot?
Only cash counts. A cash ISA is fine. Stocks and shares or other investments must be converted to cash, and the period you held the investment can then count towards the six months.
Can savings be combined with self-employed income?
Not normally. Savings can be combined with salaried employment, pension and certain other income, but not with self-employment or income from your own limited company.
Official Sources
This page is general information, not legal advice. The rules and figures are set by the Home Office and can change.