Sorry if I was being unclear or if the question I'm asking just doesn't make any sense but I meant the interest counting toward the income requirement if that makes sense.
Like say my spouse had a bank account with £20000 that earned £30 per month in interest. (just an example) would that interest count as additional income and potentially lower the amount of savings that would be required to be held for 6 months?
Yes, you could, but I'm not sure it would be worth it for that small amount of interest, for the reasons larrabee said, and also because it would make your financial requirement categories a lot more complicated, as it would mean having to apply under 3 separate categories:
- Category A or B Employment income
- Category C Non-Employment Income
- Category D Cash Savings.
Plus, if it's only interest of £30 per month, which is £360 per year, it would only reduce the savings amount you need by £900 (£360 x 2.5 = £900).
So, say your situation is as follows:
Employment Income = £15,000 per year (not including the interest)
Cash Savings needed to meet the requirement = £25,000
But including the interest:
Employment Income = £15,000 per year
Non-Employment Income (the interest) = £360 per year
Cash Savings needed to meet the requirement = £24,100
And of course, if that amount of £360 is taxed, it would reduce the savings needed by even less... so ultimately, it's unlikely to be worth the hassle of using it.