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Raisin is a great option if your ultimate goal is to earn the best savings account, money market account, and CD rates out there. Raisin offers APYs of up to 5.26% on savings and up to 5.31% on CDs. It's a marketplace that connects you with accounts you might not be able to access otherwise, including ones at community-driven and minority-owned institutions. You'll also earn higher rates than if you opened an account directly through one of its partner banks.
About Raisin
Raisin is a digital marketplace for finding high-yield accounts. It partners with banks and credit unions to offer you special interest rates if you open an account through Raisin rather than directly on the partner banks' websites.
Raisin has been providing a similar high-yield savings account marketplace in Europe. It works with over 400 banks and has more than 1 million direct customers. It started providing services in the U.S. through SaveBetter, and SaveBetter has now officially rebranded as Raisin.
Raisin is not a good choice if you want immediate access to your savings, though — it doesn't offer checking accounts, so you'll need to keep a checking account at another institution and make transfers between banks, which could take up to a few business days.
Raisin Pros and Cons
Raisin account pros
One of the primary benefits of using Raisin is that you'll be able to find a variety of savings accounts, money market accounts, and CDs with high interest rates. Many of these rates are exclusive options, and the rates are higher than what you would find if you opened an account directly from a participating bank's website.
Raisin also stands out for its opening requirements. There's a $1 minimum opening deposit and no monthly service fee for all accounts. At traditional financial institutions, you may need to be mindful of monthly bank maintenance fees or higher minimum opening requirements.
Raisin account cons
Raisin offers several types of savings accounts, but it doesn't offer any checking or business bank accounts. As a result, if you transfer money to an external account, it may take one to three business days to process.
Because you're not directly banking with a financial institution, there are also a couple of unique downsides. For example, Raisin doesn't let you receive direct deposits or make cash deposits. You also can't connect your selected savings accounts to a third-party budgeting app like Rocket Money or YNAB App.
Raisin also has poor mobile app ratings on both the Apple Store and Google Play Store. That said, there are fewer than 60 reviews on each mobile app.
Raisin Savings Platform
Raisin partners with multiple banks and credit unions, including Sallie Mae, Mission Valley Bank, SkyOne Federal Credit Union, and more. Raisin can change partner companies at any time.
Many of the institutions are less well-known companies — but the good news is that your money is still safe with these less popular brands. You have FDIC insurance for banks (or NCUA insurance with credit unions) when you open accounts through Raisin. This means up to $250,000 is safe in an individual account, and $500,000 in a joint account.
Credit unions require you to become a member to open an account, and membership is usually only available to employees of certain companies or residents of specific counties. But when you open a credit union account through Raisin, you simply have to sign a membership agreement, and you'll qualify without having to pay any membership fees.
Some of the partner bank accounts are available nationwide, but you'll earn a higher rate through Raisin. Others are usually only available in certain areas, but they're available around the U.S. through Raisin.
The marketplace gives you the chance to earn high interest rates with the added bonus of working with institutions whose values you support. For example, Ponce Bank is certified as a community development financial institution (CDFI), meaning it serves a local disadvantaged community. It's also a Hispanic-American owned bank. When you're searching for accounts, Raisin lets you filter by the type of institution you want, such as minority-led, family-owned, or one with a local focus.
Once you deposit money into your account through Raisin, it's held in an omnibus custodial account at the partner bank. The custodial account is managed by Lewis & Clark Bank, which is the custodian bank. When your funds are in a custodial account, the money is pooled with deposits from other Raisin customers.
Custodial accounts make it possible for Raisin to deposit money to separate banks, but they do come with drawbacks. The main downside is that it's a little difficult to access your savings. To deposit or withdraw money, you must link your Raisin account to an external account, then transfer money between the accounts. These transfers typically take one to three business days. So you'd always want to keep a checking account at a separate bank for these transfers.
Raisin Customer Service
To contact customer service, call Monday through Friday from 9 a.m. to 4 p.m. ET. You can also send an email or use automated chat on the website.
Some Redditor users have said they've experienced long wait times to receive customer support, though. Traditional banks and credit unions may offer more customer service availability. Some banks have 24/7 customer supportthroughonline chat or telephone.
Raisin is rated 2.0 out of 5 stars in the Apple store, and 3.1 out of 5 stars in the Google Play store. However, there are fewer than 60 reviews on each mobile app.
Is Raisin Trustworthy?
The Better Business Bureau grades companies based on responses to customer complaints, transparency about business practices, government actions against the businesses, and more. The BBB gives Raisin a B+ grade because there are several complaints against the company on the BBB website.
Raisin does not have any public controversies.
It can be good to read customer reviews or talk with friends and family who have used Raisin to get a better idea of what your experience could be like. You also may want to look into the BBB grade and customer reviews for a partner bank you're considering using through Raisin.
Raisin High-yield Accounts
Raisin High-yield Savings and Money Market Accounts
The average savings account interest ratenationwide is just 0.46% APY. Many savings accounts at national banks charge monthly fees if you don't qualify to waive them. You'll earn significantly more through Raisin's partner savings and money market accounts, and you won't pay monthly fees.
Let's say you leave $10,000 in a savings account untouched. At a traditional bank that pays 0.05% APY compounded daily, you'd earn $5 in one year (which might be cancelled out by how much you pay in monthly fees). Maybe you open an account with Raisin that pays 5.00% APY. In one year, you'd earn $512.67 on that $10,000.
Raisin Fixed-Rate CDs
Savings and money market accounts have variable interest rates, so rates can fluctuate at any time. But CDs have fixed rates, meaning that if you open a 1-year CD with a 5% APY, that rate is set in stone and you'll earn 5% for the entire year.
There are other benefits to opening a fixed-rate CD through Raisin besides a higher rate. First, you may have access to a term length (say two months or nine months) that isn't available directly through the bank. Second, you only need $1 to open a CD through Raisin, regardless of which partner bank you choose. CDs typically require hundreds or even thousands to open an account. For example, you would normally need $2,500 to open a CD with Sallie Mae, but you only need $1 to open a Sallie Mae CD with Raisin.
Keep in mind that you will have to pay an early withdrawal penalty if you take out money before the term ends. When searching for fixed-rate CDs on the Raisin website, click on "product terms" next to the CD you're considering to see what that fee would be.
Raisin No-Penalty CDs
Unlike regular CDs, no-penalty CDs do not charge you for taking out money before a term ends. Most banks require you to take out all the money in one lump sum, though.
No-penalty CDs aren't super common, so it's nice that Raisin gives you even more options than you may find elsewhere.
Raisin Savings Alternatives
Raisin vs. Ally
If you're searching for the highest savings rates, Raisin will likely stand out more than Ally. Raisin has savings accounts, money market accounts, and CDs from a variety of banks and credit unions that pay more than any of Ally's bank accounts.
Although Raisin has partnerships with many banks, your overall banking options and services are still limited. Raisin doesn't offer checking accounts or access to other types of products like credit cards or loans.
If you're looking to do all your banking with one financial institution, Ally is a great option. Ally is one of the best online banks, and it has minimal fees and easy opening requirements for a variety of products.
Ally is also faster and makes it easier to access your money. You can simply transfer money between the bank's checking and savings accounts and see the change almost instantly.
Ally Bank Review
Raisin vs. Popular Direct
Raisin and the online bank Popular Direct both offer some of the best CD rates and savings account rates overall, so deciding between the two companies may ultimately depend on the account you want and how much you plan to deposit upfront.
Raisin may be a better choice if are looking for accounts with low minimum opening requirements – you only need $1 to get started. Meanwhile, Popular Direct has pretty steep opening requirements for an online bank. You'll need $100 to open a savings account and $10,000 to open a CD.
Popular Direct offers a checking account though, which Raisin doesn't offer. Hence, you may prefer Popular Direct if you want more direct access to your savings. Popular Direct also allows direct deposits, while Raisin does not.
Popular Direct Review
Why You Should Trust Us: How We Reviewed Raisin Accounts
At Personal Finance Insider, we rate products on a scale from zero to five stars. We use abank account rating methodologythat compares and contrasts the features and fine print of various products to help determine if the account may be right for you.
For example, we'll look at the minimum opening deposit, interest rate, monthly service fees, customer support availability, mobile app ratings, and ethics of a company to determine the rate for a savings account. For CDs, we'll look at similar criteria. However, we'll factor in early withdrawal penalties and CD variety, and we won't consider monthly service fees since that isn't applicable.
Raisin FAQs
Is Raisin legitimate?
Yes, Raisin is a legitimate company. It connects you to bank accounts that are federally insured by the FDIC or NCUA.
Can I trust Raisin Bank?
Yes, Raisin is a trustworthy service overall. Raisin isn't a bank, it's an online marketplace that connects you with partner banks. Through these partner banks, your money is federally insured by the FDIC or NCUA. The American Institute of CPAs has given Raisin an SOC 2 certification, which means the AICPA has audited Raisin and found that the company has a high level of online security.
Does Raisin charge a fee?
No, Raisin doesn't charge a membership fee or a monthly bank maintenance fee. You'll only pay a fee if you withdraw money from a CD before the term ends — this is known as an early withdrawal penalty.
Is Raisin insured?
Yes, accounts you open through Raisin are insured. Accounts at partner banks are federally insured by the FDIC, and ones at partner credit unions are insured by the NCUA.
Who is Raisin owned by?
Raisin is owned by Raisin GmbH, a logistics firm founded in 2012. Raisin GmbH is based in Berlin, Germany, and owns both Raisin and Raisin UK.
How do I withdraw money from Raisin?
To withdraw money from Raisin, transfer funds from your Raisin-affiliated account to an external bank account. The transfer will probably take one to three business days.
Personal Finance Reviews Editor
Laura Grace Tarpley (she/her) is an expert in mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips for Personal Finance Insider. She worked on Business Insider's "The Road to Home" series, which won a Silver award from the National Associate of Real Estate Editors.She has written about personal finance for over seven years. Before joining the Business Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU.
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Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She is a banking expert, and has about three years of experience reviewing banking products and analyzing savings and CD trends.Sophia oversees Personal Finance Insider's banking vertical. She edits and writes bank reviews, banking guides, and banking, budgeting, and savings articles for the Personal Finance Insider team.Sophia joined Business Insider in July 2021. Sophia is an alumna of California State University Fullerton, where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services »Below are links to some of her most popular stories:
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