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Topic: Certificate of deposit use for evidence of cash savings  (Read 409 times)

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Certificate of deposit use for evidence of cash savings
« on: May 21, 2015, 05:40:44 PM »
We're lucky to be able to meet the savings requirement comfortably using some college fund accounts for our kids that were setup 4-5 years ago after a surprise inheritance.   However it's in a mix of 5 year CDs.   When we opened the account we were told we could withdraw funds early if we paid a penalty of 6 months of interest, but the account terms and conditions say that this is "at the discretion of the bank".   Luckily one matures on June 10th 2015 but the other doesn't mature until June 2016.

Does anyone have any views on whether the CD with a maturity date in 2016 will be disqualified from meeting the financial requirements because in theory the bank could not allow us to make early withdrawals (even though in practice they'd probably love us to do this because we're getting pretty good interest rates).

Has anyone else used CDs for the savings that don't mature for a few months or years in the future ?


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Re: Certificate of deposit use for evidence of cash savings
« Reply #1 on: May 21, 2015, 07:47:27 PM »
I'm erring on the safe side, but I personally think it's taking a risk.  There's no issue that you would incur a penalty for early withdrawal, but the account funds have to be immediately accessible.  If the account terms and conditions stipulate that withdrawal (even with penalty) is at the discretion of the bank, I would avoid using that account if at all possible because in my opinion, that's not "immediately accessible" - even though it's unlikely, the bank could refuse any early withdrawals.

Hopefully others can add their interpretations?

Quote
7.4.3 The following table illustrates all the requirements that must be met:

1.  The account is held within a bank of building society
2.  The bank/building society is a financial institution regulated by the appropriate regulatory body for the country in which that institution is operating
3.  The bank/building society is not on the list of excluded institutions under the Immigration Rules
4.  The account is a current account or a savings account
5.  Regular bank statements are provided
6.  The statements cover the necessary time period required in the Immigration Rules
7.  The savings are held in cash (or their cash value is clear)
8.  The savings can be immediately withdrawn (with or without penalty)
9.  The funds are under the control of the person and/or their partner for the necessary time period required in the Immigration Rules
10.  The source of the funds is legal
11.  The source of the funds has been declared


and

Quote
7.4.16. Appendix FM-SE specifies further requirements for cash savings:

11A.  In respect of cash savings:

(a) The savings may be held in any form of bank/savings account (whether a deposit or investment account), provided that the account allows the savings to be accessed immediately (with or without penalty for withdrawing funds without notice).  This can include savings held in a pension savings account which can be immediately withdrawn.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/420154/Appendix_FM_Annex_1_7_Financial_Requirement.pdf

(emphasis mine, pages 50 and 54)


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Re: Certificate of deposit use for evidence of cash savings
« Reply #2 on: May 21, 2015, 08:33:54 PM »
Yes it's fine.  People have even been successfully using their fully vested 401ks.


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Re: Certificate of deposit use for evidence of cash savings
« Reply #3 on: May 21, 2015, 08:39:21 PM »
One of the accounts is a passbook account for which we get no posted statements.   It matures on June 10th 2015, so the funds will be unconditionally liquid well before we set foot in the UK.   I just visited the branch and they printed (on headed letter paper) 12 months of account balance plus interest accrual and added a letter from the manager stating merely that we have held savings with the bank since June 2011 with a balance continually above $XXX - nowhere on either the 12 month statement or the letter does it mention anything about it being a CD.

So I think we may be good with that one.

This process is full of so many unpleasant surprises.   Just when you think you have your bases covered ......  :o

Thanks again everyone.  I feel so bad for those in a less fortunate position financially - getting my green card was relatively much simpler, and THAT was no cake walk.
« Last Edit: May 21, 2015, 08:42:55 PM by sdt99 »


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