Account types
Overview
This page explains GBP accounts, their protections, and the different account types. Embedded Banking Partners should refer to the embedded banking documentation for information on FSCS Protected Retail and Business accounts.
When you join ClearBank, four financial accounts are given to you by default:
- An Operational Account
- A General Segregation Account
- A Bacs Suspense Account
- A Mandated Minimum Balance Account
You cannot create additional Mandated Minimum Balance or Bacs Suspense accounts.
You can create additional accounts of other types - these are covered in the account types section.
Real vs Virtual accounts
You can create multiple virtual accounts - each for a different customer - under a real account. This lets you keep several different customers' funds in a single real account.
Real accounts are held with ClearBank.
The balances of real accounts are reconciled by ClearBank and can be checked on the ClearBank Portal or via our GET /v3/Accounts/{accountId} or GET /v3/Accounts endpoints.
Real GBP accounts can be created using the POST /v3/Accounts endpoint.
Virtual accounts are held on your platform, but their funds are kept in a real account held with ClearBank.
To create a virtual account with ClearBank, you must create it under one of your real general (also known as pooled) accounts. You can then use this account's virtual IBAN (vIBAN) to send and receive payments using funds from the associated real account.
You can create virtual accounts using the POST /v2/Accounts/{accountId}/Virtual endpoint.
You are responsible for managing and reconciling your virtual accounts' balances.
Account types
| Usage type | API value | Account name prefix |
|---|---|---|
| Your Funds | YourFunds | - |
| Client Money Pooled | ClientMoneyPooled | General Client Account (Wholesale) or General Client Account (Retail) |
| Client Money Designated | ClientMoneyDesignated | Designated Client Account (Wholesale) or Designated Client Account (Retail) |
| Segregated Pooled | SegregatedPooled | Gen Seg Acc Wsale or Gen Seg Acc Retl |
| Segregated Designated | SegregatedDesignated | Des Seg Acc Wsale or Des Seg Acc Retl |
| Safeguarded Pooled | SafeguardedPooled | Gen Seg Acc Wsale or Gen Seg Acc Retl |
| Safeguarded Designated | SafeguardedDesignated | Des Seg Acc Wsale or Des Seg Acc Retl |
| Client Suspense | ClientSuspense | - |
The Wholesale/Retail endings will depend on your institution's arrangement with ClearBank.
Client Money accounts
Client accounts are used if you're operating under CASS 7. This typically applies if you provide your customers with investment services or certain types of ISA.
General Client
Also known as Client Money Pooled accounts - are pooled accounts that hold funds for one or more of your named clients. Virtual accounts can be created under this account type.
Designated Client
Also known as Client Money Designated accounts - each holds funds for just one of your customers.
Segregated accounts
Segregated accounts exist to hold customer funds separate from your operational funds. They should therefore not be used to hold any of your institution's own funds. For certain types of institution, it is a regulatory requirement that customer funds are segregated from your institution's operational funds.
You can use segregated accounts if you're not subject to Safeguarding or Client Money rules but still wish to keep your customer's funds separate from your operational funds.
General Segregation Also known as Segregated Pooled accounts - are pooled accounts that hold funds for one or more of your customers. Virtual accounts can be created under this account type.
Designated Segregation Also known as Segregated Designated accounts - each holds funds for just one of your customers.
Safeguarded accounts
A safeguarded account is a type of segregated account, but is subject to different regulatory requirements to help keep customer money safe. Safeguarded accounts, being a type of segregated account, should not be used to hold any of your institution's own funds.
On request, ClearBank will provide safeguarding letters for each safeguarded account as proof of FCA regulatory compliance.
E-Money Institutions (EMIs), Payment Institutions (PIs), Credit Unions issuing e-money, and small payment institutions that choose to comply with safeguarding rules must have at least one safeguarded account place. This is a Financial Conduct Authority (FCA) requirement.
General Safeguarded
Also known as Safeguarded Pooled accounts - are pooled accounts that hold funds for one or more of your customers. Virtual accounts can be created under this account type.
Designated Safeguarded
Also known as Safeguarded Designated accounts - each holds funds for just one of your customers.
Other account types
Operational
Also known as a Your Funds account - holds your own operational funds. This can include fees, interest earnings, and so on.
Mandated Minimum Balance
Holds your institution's pre-agreed mandatory minimum balance. Funds here are subject to the terms of your institution's contract with ClearBank.
Bacs Suspense
A special type of suspense account used to settle Bacs payments which cannot be applied to the intended account. You do not need to deposit funds into it, and you cannot initiate payments from it.
Other Client Suspense
These are generally only applicable for Embedded Banking Partners. You do not need to create Client Suspense accounts unless instructed to do so. You may require an additional suspense account which is not scheme-specific if you adopt certain ClearBank products, such as ISAs.