Raisin, the savings platform formerly known as SaveBetter, connects depositors with multiple FDIC-insured banks to help them earn higher interest rates on savings accounts. The service acts as an aggregator, pulling together competitive rates across partner institutions rather than offering its own bank products.
Here's how it works. You open an account through Raisin's platform and link it to your existing bank account. Raisin then places your deposits across multiple FDIC-insured banks, typically in amounts under the $250,000 FDIC insurance limit per bank. This approach spreads your risk and often yields higher rates than you'd find at a single institution.
The legitimacy question matters because Raisin handles your money. The company operates as a registered broker-dealer and works exclusively with established banks. Your deposits remain FDIC-insured at the destination banks, not through Raisin itself. The platform doesn't hold your funds.
Raisin charges no monthly fees for its savings accounts. Some accounts carry no minimum balance requirements, though rates vary by product. The company makes money through fees paid by partner banks, not through charging customers directly.
The practical appeal is straightforward. Instead of shopping individual bank websites to compare CD rates or savings account yields, you log into one place. Recent rate environment shifts have made this aggregation service valuable. With many banks offering rates between 4% and 5% on savings accounts and higher rates on CDs, the difference between a 0.01% rate at your brick-and-mortar bank and a 5% rate elsewhere compounds quickly.
One trade-off exists. Managing multiple sub-accounts across different banks complicates your banking picture compared to holding everything at one institution. Raisin's platform simplifies this administratively, but you're still technically banking at multiple places.
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