Raisin’s online platform has consistently provided savings products with the highest interest rates. In fact, its selection of savings accounts and money market deposit accounts dominates my list of the best high-yield savings accounts.
If you’re wondering exactly what Raisin is, how the platform offers such high rates, and whether or not their legitimate, you’ve come to the right place. In my Raisin review, I’ll cover these topics, along with my first-hand experience using the platform and how much I’ve earned in interest.
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- FDIC Insured
- High APY
- No fees
- Consumer accounts only
- Limited customer service hours
- No checking services
What is Raisin?
Raisin (formerly SaveBetter.com) is an online platform that partners with banks and credit unions to provide very competitive rates on high-yield savings accounts, money market accounts, and certificate of deposits (CDs).
It acts as a marketplace where consumers can compare and open savings products with exclusive interest rates from partners across the United States. Many of these rates are not offered elsewhere, not even directly on the partnered bank or credit union’s website.
The platform allows partners to offer their savings products to a wider audience. In return, many banks offer interest rates higher than their own website in order to attract new customers.
Users can open and manage multiple savings accounts on the platform, with funds held and insured by the issuing bank. By using Raisin, customers can access savings accounts from multiple banks all in one place, without having to navigate to each banks’ websites.
When you use Raisin, your money is pooled in a custodial account at the bank that owns the savings product you opened. Everything goes through Raisin which means you won’t get a separate bank account number, but you’ll still enjoy the same deposit insurance.
Deposit insurance is the most important factor when it comes to choosing a place to save. Fortunately, all savings products from partnered banks and credit unions found on Raisin are insured by the FDIC or NCUA.
Banks: Raisin bank partners are FDIC-insured up to the maximum amount permitted by law, which is $250,000 per deposit, per FDIC-insured bank, per account ownership category.
Credit Unions: Raisin credit union partners are NCUA-insured via the Share Insurance Fund. This was created by Congress in 1970 to protect deposits in federally insured credit unions. The Share Insurance Fund provides protection to each individual account, up to $250,000.
How Can Raisin Offer Such High Rates?
Raisin bank and credit union partners can offer really high interest rates because they spend less on marketing and pass the savings to you.
A typical national bank spends an enormous amount of money on marketing and advertising. Think of all the bank TV commercials you see, billboards you drive by, and postal mail you receive.
These large banks also pay you a lot of money to become a customer, offering hundreds or even thousands of dollars in bank bonuses.
Smaller banks and credit unions can’t compete on the same scale, so they partner with a marketplace platform like Raisin to offer their products to a bigger audience. Instead of paying a big bank bonus, they offer higher interest rates.
Who Can Use Raisin?
The requirements to use Raisin is the same as opening an account at banks and credit unions.
You must be at least 18 years old, live in the United States, and have a Social Security number (SSN) to open a deposit account.
Should You Use Raisin?
You should consider Raisin if you’re looking for the best rates for savings accounts, money market deposit accounts, or CDs.
It’s a great option for your savings, money that you need to keep liquid, or cash that you don’t want exposed to investing risks.
If you’re someone looking to save for a big purchase, grow an emergency fund, or earn passive income, then Raisin may be the right choice for you.
Are There Any Raisin Fees?
No, there are zero fees for using Raisin. None of the accounts have a monthly service fee and each account requires just $1 to open. You keep 100% of the interest income you earn.
The only potential fee is if you open a term CD and decide to withdraw your funds before the CD maturity date. This isn’t specific to Raisin – it’s true at any bank. You can get around this fee by opening a no-penalty CD.
Types of Savings Products
Raisin offers four types of savings products; high-yield savings accounts, money market accounts, high-yield CDs, and no-penalty CDs.
- High-Yield Savings Accounts: A savings account that typically offers a higher annual percentage rate (APY) than traditional savings accounts.
- Money Market Accounts: Another type of bank account that usually offers higher interest rates than traditional savings accounts. Some banks require high minimum deposits or monthly service fees (Raisin doesn’t).
- High-Yield CDs: A CD is a type of savings account that offers a fixed interest rate for a specified period of time, with penalties for early withdrawal of funds.
- No-Penalty CDs: A CD allows the account holder to withdraw funds before the end of the term without incurring a penalty fee.
There are no other banking products on Raisin. The platform is targeted at savers who want to earn competitive interest rates.
In the current economic environment, I recommend looking at high-yield savings and money market accounts only. It’s better to be in a savings product that doesn’t require a minimum holding period or early withdrawal penalties when rates are constantly changing.
Best Savings Products (by Highest APY)
Here are the banks that provide the best rates in each savings product category:
- Pacific Western Bank (5.25% APY): Best High-Yield Savings Account 🏆
- PacWest Bank (5.25% APY): Best Money Market Account 🏆
- SkyOne Federal Credit Union (5 months @ 5.40% APY): Best CD Account 🏆
- mph.bank (4 months @ 5.30%): Best No-Penalty CDs 🏆
Raisin Bank Partners
The following are Raisin’s bank and credit union partners:
- Adda Bank
- American First Credit Union
- Axiom Bank
- Blue Federal Credit Union
- Central Bank of Kansas City
- CloudBank 247
- Columbia Bank
- Connexus Credit Union
- Continental Bank
- First Financial Northwest Bank
- First Mid Bank & Trust
- Great Lakes Credit Union
- GreenState Credit Union
- Hanover Bank
- Harborside Credit Union
- Idabel National Bank
- Lemmata Savings Bank
- Liberty Savings Bank
- Mission Valley Bank
- Medallion Bank
- OceanFirst Bank
- PacWest Bank (Pacific Western Bank)
- Patriot Bank
- Ponce Bank
- Sallie Mae
- Select Bank
- SkyOne Federal Credit Union
- The Atlantic Federal Credit Union
- The State Exchange Bank
- Technology Credit Union
- Western Alliance Bank
- Wex Bank
Keep in mind that partners may change over time, and the current list of partners may not be limited to those listed above.
And in light of the recent troubles with Silicon Valley Bank and Silvergate Bank, having multiple partners under a single platform is a significant advantage.
While all your funds are under a single login at Raisin, each bank partner is considered a separate account.
So let’s say you’re like Richie Rich and have $1 million in cash that you want to keep safe. You can open accounts with five different institutions and deposit $200,000 in each of them.
This way, you can keep all your accounts under the maximum FDIC limit of $250,000 and still leave room for earned interest.
How Does Raisin Work?
It’s fairly straightforward to create a Raisin account and select banks that you want to open interest-bearing accounts with.
1. Compare Savings Products
The first step is to browse the site and compare rates on the banking products Raisin offers on its platform:
- High-Yield Savings Accounts
- Money market deposit accounts
- High-Yield Term CDs
- No-Penalty CDs
Each product type will list all the banks and credit union partners, the account name, the APY offered, and the annualized earnings (what you can expect to earn).
Once you find a savings product you want to open, click on the “Save now” button to open a Raisin account.
2. Create an Account
Creating a Raisin account takes minutes. The first screen will ask you to provide your name, email address, password, and a referral code if you have one.
After submitting your basic information, Raisin will verify your identity with the information provided. Then as soon as this is completed, it’s time to fund your account!
3. Fund New Account
Funding your Raisin account simply by linking an existing savings or checking account. You can do this automatically through the third-party app or manually entering your bank account number and routing number.
Deposits take up to three business days to complete. Once the bank custodian receives your deposit, you begin to earn interest immediately.
4. Manage Accounts
You can view your current balance, interest rate, and earnings across all accounts you open with your Raisin account.
This is one benefit that is often overlooked. It’s nice to have a single login that tracks all your accounts from one place.
Plus, at the end of the year, you’ll receive just one 1099-INT tax document, regardless of how many accounts you opened. If you’re like me and opened a bunch of savings accounts, you don’t have to worry about entering a bunch of 1099-INT forms during tax season.
Pros and Cons of Raisin
- Highest interest rates for savings accounts available
- Single sign-on to access and manage all products
- FDIC-insured or NCUA-insured
- No other banking products besides savings
- Can’t connect to third-party finance dashboards (Mint, Empower, etc.)
- No retirement account offerings
My Personal Experience with Raisin
I have two buckets of cash that I need to keep liquid and out of volatile investments – an emergency fund that covers 12 months worth of living expenses and a housing fund with cash reserved for a down payment on an investment property.
Big national banks, as my readers may already know, offer savings accounts with paltry interest rates. At the time of this writing in September 2023, the average interest rate for a savings account is 0.43% APY.
So I started to look around for savings accounts that offer the best rates and found ones like Western Alliance Bank via Raisin. It offers a high-yield savings account with a 5.25% APY, more than 12.2x the national average.
Let’s put that in perspective. If you saved $10,000 at a typical national bank for a year, you’d end up with only $43 in interest. The same $10,000 at Western Alliance Bank would pay out $515 in interest.
That’s a huge difference that only gets bigger the more money you plan on saving. For example, I recently deposited $250,000 at Raisin. Here’s my analysis of Raisin compared to the average bank:
|Bank||APY Rate||Earned Interest|
|Raisin (Western Alliance Bank)||5.25%||$13,125|
I’d earn $13,000 at Raisin compared to just $1,025 had I saved money at a national bank. That’s a difference of $12,050!
Here’s a screenshot of my account at Raisin for the “pics or it didn’t happen” crowd (note that this screenshot is displaying the rate offered when I initially opened the account – which has since increased):
I understand that some people may feel that switching banks is a hassle and haven’t done so. However, the reality is that switching bank accounts has never been easier, as most banks now allow you to make the switch online via electronic transfers.
Some of my friends had the same inertia until I showed them how easy it was and the difference in the interest they could earn.
If you change your mind, Raisin lets you withdraw part of or all of it back to your original bank account. There’s no question that you should save your money in an account with a higher interest rate.
The Raisin Group owns and operates Raisin.com. Headquartered in Germany, Raisin GmbH services over 650,000 direct customers on its savings platforms across Europe and the United States.
Learn more about Raisin’s U.S. operations.
Your funds are held in a custodial account at the bank or credit union that you opened the savings product(s) with.
Custodial accounts are accounts where Raisin directs the money from customers to the banks and credit unions holding their savings.
When you make a deposit through your Raisin account into a savings product offered by a bank or credit union partner, the funds move to an omnibus custodial account held by Lewis and Clark Bank (functioning in the role as a custodian bank) at the financial institution offering the savings product.
The custodial bank, Lewis & Clark, will see to the orderly return of consumer funds. The custodial bank gets a daily update on the balances of all deposit accounts by individual customers.
Yes, your money is FDIC-insured with Raisin bank partners and NCUA-insured with Raisin credit union partners.
While your deposits at Raisin are pooled in omnibus accounts, there’s no impact on your eligible deposit insurance coverage from FDIC or NCUA. Both FDIC and NCUA permit pass-through coverage.
No, Raisin will not perform a ChexSystems inquiry.
Partner banks and credit unions pay fees to Raisin in return for marketing their products on the platform.
You can speak to a Raisin customer service representative by calling 844-994-EARN (3276) between 9AM and 4PM EST, Monday to Friday.
Other contact options include communicating by email (firstname.lastname@example.org) or live chat during business hours.
The Bottom Line
Raisin is legit and I trust it completely. I also bank with them, as you can see in this Raisin review. I know it’s a different banking model than what most people are used to, but I see it as a win for all sides.
Raisin receives a fee from financial institutions for marketing their products on its platform, while the partnered banks and credit unions gain marketing exposure they would otherwise miss out on, and customers get access to products with high interest rates.
If you prefer to open a high-yield savings account with a bank directly, then I would recommend the UFB Direct Savings Account, Discover Bank Online Savings Account, or CIT Bank Savings Connect Account.
1. FDIC. Understanding Deposit Insurance, Retrieved 2/28/2023
2. FDIC. National Savings Rates Index, Retrieved 9/10/2023
3. U.S. Securities and Exchange Commission. Investor.gov Compound Interest Calculator, Retrieved 7/01/2023