About Raisin

First Financial Northwest Bank – 12m CD – 5.25% APY

Nelnet Bank – High Yield Savings Account – 5.25% APY

Raisin is an online platform that serves as a marketplace for high-yield accounts. It collaborates with banks and credit unions to provide special interest rates to customers who open accounts through Raisin instead of directly on the partner banks’ websites.

Raisin has been operating a similar high-yield savings account marketplace in Europe and has established partnerships with over 400 banks, serving more than 1 million customers. It expanded its services to the United States through SaveBetter, which has now rebranded as Raisin.

However, Raisin may not be the best choice if you require immediate access to your savings. Since it does not offer checking accounts, you will need to maintain a checking account at another institution and make transfers between banks, which could take a few business days.

Pros and Cons of Raisin Accounts

Pros of Raisin accounts:

Raisin provides access to a variety of savings accounts, money market accounts, and certificates of deposit (CDs) with high interest rates. Many of these rates are exclusive to Raisin, and they are generally higher than what you would find by directly opening an account with a participating bank.
Raisin has low opening requirements, with a minimum deposit of $1 and no monthly service fees for all accounts. Traditional financial institutions often impose monthly maintenance fees or higher minimum deposit requirements.

Cons of Raisin accounts:

Raisin does not offer checking or business bank accounts. Consequently, transferring money to an external account may take one to three business days to process.
Since you are not directly banking with a financial institution, there are limitations. For instance, Raisin does not support direct deposits or cash deposits. Additionally, you cannot connect your selected savings accounts to third-party budgeting apps like Rocket Money or YNAB App.
Raisin’s mobile app has received poor ratings on both the Apple Store and Google Play Store, although there are relatively few reviews for each app.

Raisin Savings Platform

Raisin collaborates with multiple banks and credit unions, including Sallie Mae, Mission Valley Bank, SkyOne Federal Credit Union, and others. Raisin can change its partner companies at any time.

While some of these institutions may be less well-known, your money is still safe when you open accounts through Raisin, as they provide FDIC insurance for banks (or NCUA insurance for credit unions). This means that up to $250,000 in an individual account and $500,000 in a joint account are protected.

Opening a credit union account through Raisin is relatively straightforward, as you only need to sign a membership agreement without incurring any membership fees. Membership in credit unions is typically limited to employees of specific companies or residents of particular counties.

Although some partner bank accounts are available nationwide, using Raisin can often yield higher interest rates. Additionally, Raisin allows you to filter accounts based on the type of institution you prefer, such as minority-led, family-owned, or with a local focus.

When you deposit money through Raisin, it is held in an omnibus custodial account at the partner bank, managed by Lewis & Clark Bank. These custodial accounts enable Raisin to distribute funds to different banks. However, accessing your savings can be somewhat challenging, as you need to link your Raisin account to an external account and transfer money between the two, which typically takes one to three business days. Therefore, it is advisable to maintain a checking account at a separate bank for these transfers.

Raisin Customer Service

You can reach Raisin’s customer service by phone from Monday to Friday, between 9 a.m. and 4 p.m. ET. Alternatively, you can send an email or use the automated chat feature on the website.

Some Reddit users have reported experiencing long wait times for customer support. Traditional banks and credit unions may offer more extensive customer service availability, with some providing 24/7 support through online chat or telephone.

Raisin has received a rating of 2.0 out of 5 stars in the Apple Store and 3.1 out of 5 stars in the Google Play Store. However, it’s important to note that there are relatively few reviews for each app.

Is Raisin Trustworthy?

Raisin has a Better Business Bureau (BBB) grade of B+. The BBB assesses companies based on factors such as responses to customer complaints, transparency about business practices, and government actions against the company. Raisin has received several complaints, which contribute to its BBB grade.

There are no public controversies associated with Raisin. To gain a better understanding of the user experience, it can be helpful to read customer reviews or seek input from friends and family who have used Raisin. Additionally, you may want to review the BBB grade and customer reviews for partner banks you are considering using through Raisin.

Raisin High-yield Accounts

Raisin offers high-yield savings accounts andinvestment products through its platform. These accounts provide customers with the opportunity to earn higher interest rates than they might find at traditional banks. However, it’s important to note that the interest rates offered by Raisin can change over time, as they depend on the rates provided by their partner banks.

Raisin’s high-yield accounts include savings accounts, money market accounts, and certificates of deposit (CDs). These accounts are FDIC-insured or NCUA-insured, depending on the partner bank or credit union. FDIC insurance provides protection for up to $250,000 per depositor, per bank, while NCUA insurance provides similar coverage for credit unions.

When considering Raisin’s high-yield accounts, it’s essential to carefully review the terms and conditions, including any fees associated with the accounts. While Raisin itself does not charge monthly service fees for its accounts, the partner banks may have their own fee structures.

It’s also worth noting that Raisin is not a traditional bank. It acts as an intermediary between customers and its partner banks, facilitating the account opening process and providing access to higher interest rates. This means that when you open an account through Raisin, you’ll be interacting with both Raisin and the partner bank for various banking activities.

As with any financial decision, it’s important to conduct thorough research and consider your specific needs and preferences before opening an account with Raisin or any other financial institution. Reading customer reviews, comparing interest rates, and considering the level of customer service and convenience are all crucial factors to consider.