Maximizing Cash Deposits with Raisin’s High-Yield Savings Marketplace
You need to lock in competitive interest rates on your savings accounts to earn a great income on your cash deposits. But there are countless banks and savings accounts, so how do you choose?
Raisin, formerly known as SaveBetter, is a company that simplifies the process. It partners with many FDIC-insured banks and NCUA-insured credit unions to offer several deposit products with attractive rates to help you meet your savings goals.
Here’s what you need to know about Raisin and how it works.
What Is Raisin?
Founded in 2012 as SaveBetter, Raisin is an online marketplace you can use to find high-yield bank accounts.
Once you sign up for an account, you may compare savings products from various banks. Many of these banks offer higher APYs than those advertised to the public.
Instead of large national banks, Raisin partners with mid-sized community banks and credit unions, some of which you may not have heard of.
Raisin doesn’t charge service fees. You can use the service to compare offers for free and won’t have to give up any of your interest income. The only potential fee you might face is a penalty if you withdraw your funds early from a CD.
Which Banks Have the Best Savings Account Rates?
Savings rates are higher than they’ve been in 15 years, but if you’re using a traditional, big-name bank, you’re missing out on these rates.
Here are our top picks for those who want to earn the highest interest on their savings
How Does It Work?
Raisin acts as a middleman, allowing customers to open interest-bearing accounts with multiple banks via a single platform. If you use Raisin, you’ll manage your accounts through it as the partner banks hold your funds and pay out interest. With the service, you can easily move your money to the bank with the highest interest rate. Here’s how Raisin works:
Create a Raisin Account: First, you must sign up for Raisin. Be prepared to share your name, email address, and password.
Compare Offers: Once you have an account, you can browse the Raisin marketplace and compare various savings products at different banks.
Open a Savings Account: After you open an account with a specific bank, you’ll verify your identity. Then, you can transfer funds via Raisin and start to earn interest.
Who Is Raisin For?
To use Raisin, you must be at least 18, live in the U.S., and have a valid Social Security number. The service may be worthwhile if any of the following apply to you.
- You’re searching for the highest interest rates on money market accounts, CDs, or savings accounts.
- You want to keep a lot of liquid cash to avoid investing risks.
- You’re saving for an emergency fund or another big purchase, like a car or down payment for a house.
Raisin might not make sense if you prefer to interact with a bank directly, as you’ll need to go through Raisin every time you want to transfer money or check your balance.
Is Raisin Safe?
Raisin only offers accounts through FDIC-insured banks and NCUA-insured credit unions. If you use the service, rest assured your funds will be insured for up to $250,000 for an individual account and $500,000 for a joint account. This means you won’t lose your money if a bank or credit union shuts down.
In addition, Raisin implements several measures to safeguard your privacy. It allows you to link your bank accounts through Yodlee. The service is also SOC 2 verified and uses auditors to assist with safety protocols and safeguard confidential customer data. The SOC 2 certification means that Raisin has a very high level of online security.
Lastly, Raisin uses multi-factor authentication and encryption, which are security protocols many banks and credit unions use.
Raisin vs. Traditional Banking
If you use Raisin, you allow a technology company to handle your savings account instead of the bank or credit union itself. But you’ll be able to compare accounts within the platform and potentially secure high interest rates that you wouldn’t be able to find elsewhere.
Without Raisin, you’d have to do the research yourself and find financial institutions that offer the best interest rates. Once you find an option you like, you’ll open an account with the bank or credit union directly. You’d receive an account number and use the institution’s online, mobile, or in-person banking capabilities to transfer funds and manage your account.
Don’t worry if you’re not ready to trust Raisin with your savings. Many alternatives, like Ally Bank or CIT, can allow you to earn high interest rates and handle the accounts independently. Just make sure you have the time and patience to shop around and compare APYs at different banks and credit unions.
Raisin Pros and Cons
Before you take the plunge and open an account through Raisin, compare these benefits and drawbacks.
- Multiple account options: With Raisin, you can open several accounts at partner banks and credit unions.
- Competitive rates: Raisin’s partners offer above-average interest rates, which aren’t always advertised or easily found by the public.
- No service fees: You won’t have to pay to use the Raisin online marketplace and compare offers.
- $1 minimum deposit: All it takes to open a savings account with Raisin is $1.
- Easy account management: Raisin’s online dashboard makes it a breeze to manage several accounts in one place.
- Smaller banks: Raisin only partners with regional and mid-size banks you might not recognize.
- No checking accounts: Since Raisin focuses on savings products, you won’t be able to open a checking account through the platform.
- No online bill pay: You can’t use Raisin to pay your mortgage, rent, car loan, or other bills online.
- Only personal banking: Raisin is specifically designed for personal banking, so it won’t allow you to grow your business savings.
- Limited customer service options: If you have a question or concern, your only option is to email Raisin, as there is no phone support or live chat.
Kinds of Accounts You Can Open with Raisin
Here’s a breakdown of the types of accounts you can open through Raisin.
Which Banks Use Raisin?
Some of the banks that Raisin partners with include:
Axiom Bank: Axiom Bank is one of the top banks in Florida and offers various personal banking services, small business, and commercial banking.
Bellco Credit Union: Bello Credit Union has two branches in Wyomissing and Sinking Spring, Pennsylvania, and has been around since 1938.
Cloudbank 24/7: Cloudbank 24/7 is a Third Coast Bank division specializing in high-yield CD accounts.
OceanFirst Bank: OceanFirst Bank is in New Jersey and prides itself on digital banking options like online banking, mobile banking, and contactless pay.
Hanover Bank: Founded in 2009, Hanover Bank has physical branches in Manhattan, Brooklyn, Queens, Long Island, and New Jersey.
Liberty Savings Bank: Liberty Savings Bank has several locations throughout Florida and provides savings accounts, mortgages, and personal loans.
Mission Valley Bank: Headquartered in Sun Valley, California, Mission Valley Bank is a community bank that prioritizes giving back.
Wex Bank: Wex is a leader in financial technology solutions and serves the travel, healthcare, and fleet industries.
Frequently Asked Questions
In June 2023, SaveBetter rebranded as Raisin. It offers the same service and accounts previously under a new name.
Factors like the offers you accept and how much you deposit will determine how much you may earn via Raisin. The more you deposit and the higher rates you secure, the more you’ll earn.
Raisin requires a $1 deposit. This means its high-yield products are easily accessible, regardless of your cash savings or financial situation.
No, Raisin is not a bank. It’s an online marketplace that can connect you to savings products at partner banks and credit unions.
Raisin focuses on smaller banks and credit unions. Many of these financial institutions are unknown to the general public yet offer impressive interest rates.