Raisin is a real company, but it is not a bank itself
Raisin is a legitimate financial technology platform that connects depositors with banks and credit unions. It does not hold your money directly. Instead, Raisin acts as a marketplace where you open savings accounts, money market accounts, and certificates of deposit (CDs) at partner institutions. The company makes money by earning referral fees from the banks when you open accounts through their platform.
Raisin operates in the United States under the name Raisin and in Europe under the same brand. The company was founded in 2012 in Germany and has expanded to multiple countries. In the U.S., Raisin is registered with the Financial Industry Regulatory Authority (FINRA) as a broker-dealer, which means it is subject to regulatory oversight and compliance requirements.
Your deposits at Raisin partner banks are protected by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), depending on the institution. This protection covers up to $250,000 per depositor per bank, not per Raisin account. The insurance protection comes from the bank where your money sits, not from Raisin itself.
Key Takeaways
- Raisin is a registered financial marketplace that connects you with banks and credit unions, but does not hold your deposits itself.
- Your money at Raisin partner banks is insured by the FDIC or NCUA up to $250,000 per bank, the same as if you opened an account directly.
- Raisin earns referral fees from partner banks and does not charge you account fees or monthly maintenance charges.
- You can withdraw your money at any time, though some CDs have early withdrawal penalties set by the issuing bank.
- Raisin's interest rates are often higher than traditional banks because partner institutions compete for deposits through the platform.
How Raisin makes money and why it matters to you
Raisin does not charge you to open an account, make deposits, or withdraw money. The company earns revenue from the banks and credit unions that pay referral fees when you open an account through Raisin's platform. This business model means Raisin has an incentive to offer you accounts with competitive interest rates—the better the rate, the more likely you are to open the account and Raisin collects the referral fee.
Because Raisin partner banks compete for deposits on the platform, the interest rates offered through Raisin are often higher than what the same bank offers on its own website. This is one concrete reason to use Raisin: you may earn more on your savings without paying any fee to Raisin for the service.
What happens to your money when you deposit it
When you open an account through Raisin, your money goes directly to the partner bank or credit union, not to Raisin. Raisin provides the platform and handles the account opening process, but the institution that holds your money is the bank you selected. You can see the name of that institution before you complete your deposit.
Your account is held at the partner bank under your name and Social Security number. The FDIC or NCUA insures your deposit at that bank up to $250,000. If you open multiple accounts at the same bank through Raisin, they count toward the same $250,000 insurance limit. If you open accounts at different banks through Raisin, each bank provides its own $250,000 protection, so you can deposit up to $250,000 at each one.
You can log into your account through Raisin's website or app to check your balance, view interest earned, and manage your account. Some banks also allow you to log in directly through their own platforms. Raisin does not control your money or prevent you from accessing it—the bank does.
Raisin's regulatory status and safety record
Raisin is registered with the Financial Industry Regulatory Authority (FINRA) as a broker-dealer. This registration means the company is subject to federal securities laws and FINRA rules, including regular audits and compliance reviews. You can verify Raisin's FINRA registration on the FINRA BrokerCheck website by searching for the company name.
Raisin has not faced major regulatory enforcement actions or widespread complaints about fraud or mishandling of customer information. The company has been operating in the U.S. market since 2015 and has grown to offer accounts at dozens of partner banks. Like any financial platform, Raisin collects personal and financial information during account opening, and it uses encryption and security protocols to protect that data.
The main risk with Raisin is not fraud by Raisin itself, but rather the risk that a partner bank fails. If a partner bank becomes insolvent, the FDIC or NCUA steps in to protect your deposits up to the insurance limit. Raisin itself does not hold your money, so Raisin's financial health does not directly affect your deposits.
Interest rates and account types available through Raisin
Raisin offers high-yield savings accounts, money market accounts, and certificates of deposit (CDs) from partner banks. The interest rates vary by account type and by bank. Raisin displays the current rate for each account before you open it, and you can compare rates across different banks on the platform.
High-yield savings accounts through Raisin typically offer rates higher than traditional brick-and-mortar banks, though rates change frequently as the Federal Reserve adjusts its benchmark rate. Money market accounts function similarly to savings accounts but may offer slightly higher rates in exchange for higher minimum balances. CDs lock your money for a set term—usually three months to five years—in exchange for a may provide rate. If you withdraw from a CD before the term ends, the bank charges an early withdrawal penalty, which is set by the bank and disclosed before you open the account.
Raisin's rates are competitive because banks use the platform to attract deposits without the cost of maintaining physical branches. You can earn more on your savings through Raisin than you would at a traditional bank, but the rates are not may provide to be the highest available—you should compare Raisin's offerings with other high-yield savings platforms and banks before deciding.
How to withdraw money and what to expect
You can withdraw money from a Raisin savings or money market account at any time without penalty. Withdrawals typically take one to three business days to reach your linked bank account. Raisin does not charge withdrawal fees, though your partner bank may have limits on the number of withdrawals per month (though this is less common now than it was before 2020).
If you have a CD through Raisin, you cannot withdraw the money before the maturity date without paying an early withdrawal penalty. The penalty amount varies by bank and CD term—some banks charge a flat fee, others charge a percentage of the interest earned. The penalty is disclosed when you open the CD, so you know the cost before you commit your money.
To close an account, you can request a withdrawal of the full balance through Raisin's platform. The money transfers to your linked bank account, and the account closes. You do not need to contact the partner bank directly unless you have questions about the account.
Comparing Raisin to opening accounts directly at banks
Opening an account through Raisin versus opening one directly at a bank's website usually results in the same account at the same bank. The main difference is the interest rate. Banks often offer higher rates through Raisin because they pay referral fees to Raisin and are willing to offer better terms to attract deposits through the platform. If you shop around, you may find that the same bank offers a lower rate on its own website than through Raisin.
Raisin simplifies the process of comparing rates across multiple banks because all the accounts are in one place. You can see rates from dozens of banks side by side and open multiple accounts without visiting each bank's website separately. If you prefer to manage all your accounts in one dashboard, Raisin offers that convenience. If you prefer to open accounts directly with banks and manage them separately, you can do that too—the FDIC insurance protection is identical either way.
Frequently Asked Questions
Can Raisin take my money or go out of business?
Raisin cannot take your money because it does not hold it. Your deposits are at the partner bank, and the FDIC or NCUA insures them. If Raisin goes out of business, your accounts remain at the partner banks and continue to earn interest. You would need to manage your accounts directly with the banks or move them to another platform, but your money would not be lost.
What if a partner bank fails?
If a partner bank fails, the FDIC or NCUA takes over and protects your deposits up to $250,000. You would receive your insured balance, usually within a few business days. Raisin's role ends when the bank fails—the insurance protection comes from the federal agency, not from Raisin.
Does Raisin report interest to the IRS?
Yes. The partner bank reports interest earned on your account to the IRS on a 1099-INT form, just as it would if you opened the account directly. Raisin does not file the form—the bank does. You are responsible for reporting the interest as income on your tax return.
Can I lose money on a Raisin savings account?
No. Savings accounts and money market accounts through Raisin are not investments—they are insured deposits. Your principal is protected by the FDIC or NCUA. You earn interest, but you cannot lose the amount you deposited. CDs also may provide your principal, though early withdrawal penalties can reduce your net earnings if you withdraw before maturity.
How do I know which partner bank to choose?
Compare the interest rates, minimum balance requirements, and account features across the banks Raisin displays. All partner banks are FDIC or NCUA insured, so the safety is the same. Choose based on the rate, the term (for CDs), and whether the bank's features match your needs. You can open accounts at multiple banks to spread your deposits across the $250,000 insurance limit at each one.