---
title: "Account types"
metaTitle: "Account types"
order: 1
showPageMenu: true
---
import Callout from "src/components/callout";
## Overview
This page explains GBP accounts, their protections, and the different account types. Embedded Banking Partners should refer to the [embedded banking documentation](/uk/docs/embedded-banking/retail/manage-retail-customers) 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](#other-account-types)
* A [General Segregation Account](#segregated-accounts)
* A [Bacs Suspense Account](#other-account-types)
* A [Mandated Minimum Balance Account](#other-account-types)
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](account-types).
Your institution account is not a financial account: it is a digital representation of your institution with ClearBank. Through it you can access all your financial accounts. In this way, your institution account is a superset of all your financial accounts.
### 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\}](/uk/docs/gbp-accounts/manage-accounts#get-information-for-an-account-real)** or **[GET /v3/Accounts](/uk/docs/gbp-accounts/manage-accounts#get-information-for-an-account-real)** endpoints.
Real GBP accounts can be created using the **[POST /v3/Accounts endpoint](/uk/docs/gbp-accounts/manage-accounts#get-all-accounts-real)**.
**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](/uk/docs/gbp-accounts/manage-accounts#create-accounts-virtual)** endpoint.
You are responsible for managing and reconciling your virtual accounts' balances.
When a payment addressed to a virtual account settles, you'll receive a [Transaction Settled webhook](../gbp-payments/faster-payments#transaction-settled-webhook) addressed to that virtual account's vIBAN. You can use this information to help reconcile the balance of the virtual account.
## 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.
You must adhere to FCA safeguarding rules (CASS 15) for your accounts to be safeguarded.
A compliant letter must be held:
- From 7 May 2026 if you operate safeguarding accounts
- When safeguarding account names change
- When new safeguarding accounts are opened
To successfully safeguard an account:
1. Prepare a new safeguarding confirmation letter on your own letter‑headed paper, using the FCA‑prescribed CASS 15 template
2. Submit the letter to ClearBank for review and countersignature through a ticket with our Client Support team
3. Submit a new letter each year, as safeguarding letters expire once every 12 months
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.
An account is only safeguarded if you have prepared a safeguarding letter that adheres to CASS 15 FCA requirements, as per the process above.
### 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.