Raisin: Is It Safe And Legit? [2023]

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Is Raisin legit?

How does Raisin work?

Is your money safe with Raisin?

Are there any other better alternatives?

How Raisin Works

First of all, Raisin is NOT a bank.

Raisin is a financial technology company that allows people easy and quick access to competitive interest rates on products like savings accounts, money market accounts, and CDs from multiple banks and credit unions — without ever having to open or maintain multiple accounts or juggle multiple statements.

Simply put, you can shop for the highest-yield savings product in one place without having to open another new bank account.

Here’s how it works.

First of all, you register an account with Raisin.

After your application is approved and identity verified,  you need to link your bank account to fund your first savings product.

With your Raisin account, you can select savings products from multiple banks and credit unions and then manage all of your deposits from one single Raisin account.

Below is a screenshot of the different savings products that you can access through the Raisin platform.

 

Since Raisin is NOT a bank, is your money really safe?

When you make a deposit through your SaveBetter account into a savings product offered by a bank or credit union, the money moves from your external bank account to a custodial account at a bank or credit union that is offering the savings product.

So, your money is always held by an FDIC-insured bank or NCUA-insured credit union, NOT by Raisin.

Savings accounts with FDIC member banks and with NCUA-insured credit unions offer coverage on up to $250,000 in deposits.

In other words, your money is SAFE.

By the way, it’s completely FREE to use Raisin.

There are no fees to open and maintain a Raisin account.

If Raisin is free to use, then how does it make money?

Raisin makes money by charging marketing fees to banks and credit unions for promoting their savings products.

It’s also very easy and fast to make deposits and withdrawals.

According to Raisin, all deposits and withdrawals are completed within 1-3 business days.

Lastly, is Raisin a secure platform?

Cybersecurity is a top priority at Raisin.

That’s why it is a SOC 2-certified platform, meaning it has been validated by outside AICPA auditors.

On top of that, it implements various measures to protect customers’ data, privacy, and transactions.

For example, Raisin uses multi-factor authentication combined with leading authentication technology to validate its customers’ identities.

Customer’s personal information is encrypted in transit and at rest using advanced cryptographic security algorithms.

Raisin Savings Products

Next, let’s look at all the savings products that you can find on the Raisin platform.

There are mainly three types of savings products:

• High-Yield Savings & Money Market Deposit Account
• Fixed Term CDs
• No-Penalty CDs

Most of the high-yield savings and money market deposit accounts offer up to 4% AYP with a minimum $1 deposit.

Interest is compounded daily and interest income is credited to your account every month.

You can withdraw your savings at any time.

If your funds are withdrawn before interest is credited, accrued interest through the date of the withdrawal will be credited to your account on the first Business Day of the following month.

Below are the various high-yield savings accounts being offered through Raisin as of 1st May 2023.

Bank High-Yield Savings Accounts	%AYP
Western Alliance Bank	5.05%	Min $1 deposit, Daily Compounding, Interest credited monthly, Federally Insured, 24/7 online access
Greenstate Credit Union	5.01%	Min $1 deposit, Daily Compounding, Interest credited monthly, Federally Insured, 24/7 online access
First Mid Bank & Trust	4.90%	Min $1 deposit, Daily Compounding, Interest credited monthly, Federally Insured, 24/7 online access
Mission Valley Bank	4.86%	Min $1 deposit, Daily Compounding, Interest credited monthly, Federally Insured, 24/7 online access
Medallion Bank	4.82%	Min $1 deposit, Daily Compounding, Interest credited monthly, Federally Insured, 24/7 online access
Adda Bank	4.85%	Min $1 deposit, Daily Compounding, Interest credited monthly, Federally Insured, 24/7 online access
State Exchange Bank	4.70%	Min $1 deposit, Daily Compounding, Interest credited monthly, Federally Insured, 24/7 online access

Below are the various money market accounts being offered through Raisin as of 1st May 2023.

Money Market Accounts	%AYP
Atlantic Federal Credit Union	4.75%	Min $1 deposit, Federally Insured, 24/7 online access
Hanover Bank	4.85%	Min $1 deposit, Interest credited monthly, Federally Insured, 24/7 online access
America First Credit Union	4.90%	Min $1 deposit, No Fees, Interest credited monthly, Federally Insured, 24/7 online access
Patriot Bank	4.8%	No fees, Daily Compounding, Federally Insured, 24/7 online access
Great FVC Bank	4.75%	Min $1 deposit, No Fees, Interest credited monthly, Federally Insured, 24/7 online access
MPH Bank	4.70%	Min $1 deposit, Daily Interest Compounding, Federally Insured, 24/7 online access

If you are looking for a slightly higher yield and you don’t need the money in the next 12 to 24 months, then you can also consider fixed-term CDs (i.e. certificate of deposit).

As you can see, the high-yield CDs offered by Sallie Mae Bank on SaveBetter give you up to 5%.

It can offer such a high-interest rate because your money is locked up for 27 months.

BELLCO Credit Union offers a slightly lower APY of 4.75% on its CDs, but your money is only locked up for 13 months.

Which high-yield CD is the most suitable for you?

That really depends on how soon you need to use your savings.