2.3 Category D: Cash Savings (£88,500)

Best for:

• Applicants relying entirely on personal savings.
• Those who need savings to “top up” an income that falls short of the £29,000 threshold.
• Applicants who recently sold a property and have the proceeds available.

How this category works

This is a purely quantitative route. There are no complex “income” calculations based on employment history; instead, the focus is on proving that the money is yours, it has been held for the required time, and it is immediately accessible.

Why is it £88,500?

The Home Office calculates this figure based on a standard formula designed to represent the capital equivalent of the £29,000 income requirement over a 2.5-year visa period.

The Calculation:

• Base Threshold: The first £16,000 of savings does not count toward meeting the income requirement.
• Income Multiplier: The remaining amount must cover the income shortfall over 2.5 years (the length of the visa).
• The Math: £16,000 + (£29,000 × 2.5) = £88,500

*Source: Appendix FM Financial Requirement Guidance (Page 55)*

Evidence Checklist 📋

• 6 Months of Bank Statements: Statements from a regulated financial institution showing that the balance never dropped below the required amount at any point in the 6 months before the application.
• Source of Funds: A document explaining where the money came from (e.g., sale of property completion statement, inheritance letter, or a gift letter).
• Bank Letter: A letter from your bank confirming your account details, the balance, and that the funds are “immediately accessible” (no fixed-term locks or withdrawal restrictions).
• Calculation Cover Sheet: Include a simple page in your application clearly showing your calculation and, if applicable, the exchange rate used (using the OANDA spot rate on the date of application).

Pro-Tips for Success

• The “Low Point” Rule: The Home Office looks for the lowest balance shown across the 6 months of statements. If you dipped below the target for even one day, that entire amount may be invalidated.
• One Account is Best: Avoid spreading money over too many accounts. Caseworkers have been known to make errors when adding up multiple accounts. Keeping funds in one account reduces the risk of human error by the caseworker and calculation errors by you.
• Avoid Transfers: Try to keep the money in the same account for the full 6 months to avoid confusing the “paper trail.”
• Avoid Vague Investments: Crypto-currency, stocks, or investments that fluctuate cannot be used. The funds must be “cash savings.”

🏠 Property Sale Pro-Tips

If your savings came from a property sale, you do not need the money to have sat in your bank account for 6 months. You can apply immediately once the money is in your account, provided you can prove you owned the property (or land) for longer than 6 months and the money represents the net proceeds of the sale.

⚠️ Disclaimer: This guide is for educational purposes and does not constitute legal advice. Immigration rules are subject to change. Always cross-reference your specific situation with the official GOV.UK Family Visas portal before submitting an application.