Raisin Review [2024] Is It Legit?

Do you want to earn money from your savings? Good idea – especially since Interest rates have been rising!

But here’s the problem: There are over 4,000 banks to choose from in the U.S. It can be overwhelming, right?

But Raisin makes it simple.

Raisin is a banking platform that’s partnered with 40 banks and credit unions to offer a variety of high-interest opportunities. It’s totally legit and seriously worth considering.

In this Raisin Review, I’ll explain how the platform works and tell you why it can be trusted. 

What is Raisin?

Raisin is an online banking platform that partners with FDIC-insured banks and credit unions to provide high-yield savings accounts for customers.

*Note: Until recently, Raisin was called “SaveBetter” in the U.S. 

The idea is straightforward. 

You know how banks have different opportunities for earning interest? Maybe one bank has a savings account with a really high annual percent yield (APY), but the certificates of deposit (CDs) don’t earn so much. And then, there’s another bank with amazing yields on CDs, but the savings accounts have deposit limits that you can’t reach.

How would you handle that situation? The traditional method would be to open the savings account with the one bank and then open a CD with the other. 

But that means creating two sets of login credentials, keeping track of two monthly statements, and looking at two different accounts when adding up your savings. My head hurts just thinking about it!

But don’t reach for the Tylenol just yet, because this is a headache that Raisin can take care of.

With Raisin, you can make just a single account and then use it to earn interest from different banks and credit unions.

Imagine this: You’ve got money in your Raisin account. You peruse the official Raisin website, selecting a high-yield savings account here and a CD there. Next thing you know, your savings are spread across different accounts, earning some serious interest. And yet, those savings are still in the same place: within your Raisin account.

You get all the benefits of spreading your savings around but not of the hassle!

How Does Raisin Work?

So, Raisin is great for maximizing the interest earned on your savings – but how does it actually work?

Getting started on the platform is a simple 7-step process:

• Step 1: Select a banking product. Before you can actually register, you need to decide which account you’d like to start with. Check out your options on the “Explore Products” page of the official Raisin website, then click “Save Now.”
• Step 2: Create login credentials. You’ll have to give your email, create a password, and enter your full name.
• Step 3: Provide personal details. This is a real-deal financial account, so you’ll have to enter your Social Security number, date of birth, and contact information.
• Step 4: Agree to the electronic communications agreement. This is where you accept Raisin’s digital business model.
• Step 5: Verify your information. Make sure everything is 100% accurate before moving forward. 
• Step 6: Fund your product by linking an external bank account. You’ll have to enter the login credentials or account details for your bank so that Raisin can access the funds.
• Step 7: Earn interest. This is the fun part – and the reason for using Raisin in the first place!

Once you’ve created an account, you can purchase additional banking products through the official Raisin website. And you’ll have plenty of options, because Raisin partners with 40 different banks and credit unions.

So now you know what the process looks like on the client’s end, but you might still be wondering how the funds are actually handled. It’s time for this Raisin review to lay out the details.

First of all, remember that Raisin is not a bank. At no point does Raisin keep hold of your money. All the platform does is connect you with FDIC-insured banking institutions. 

When you fund a banking product on the platform, Raisin deposits the money in a “custodial account” at the chosen bank or credit union. This custodial account contains all the funds deposited at that bank by Raisin customers. 

Then, Raisin does the work of monitoring the funds you have with different banks through the platform. Each month, you’ll get a statement showing all your deposits and telling you how much interest you’ve earned. 

And since the money is held in Federal Deposit Insurance Corporation (FDIC)-insured institutions, the first $250,000 in each bank or credit union is federally insured. That’s why this Raisin review is so positive. Raisin combines convenience and safety in a way that seriously benefits customers! 

Is Raisin Legit? 

Raisin is absolutely a legitimate operation. Want proof? Consider this:

• Raisin is a massive international company with headquarters in Germany.
• Raisin has over 1 million customers around the world. 
• The Better Business Bureau gives Raisin an A- rating. 
• Raisin has helped people deposit over $40 billion worldwide.
• Raisin has over 400 partner institutions around the world – and currently 40 in the U.S.

Together, these facts make it pretty clear that Raisin is a company worth trusting!

Is Raisin Safe?

When you deposit money with Raisin, you can be 100% sure it’s safe. 

Why? 

Because all of the banks and credit unions that Raisin partners with in the United States are insured by the FDIC. 

The FDIC is part of the federal government, and it guarantees the first $250,000 you place in a protected bank account. That means that, even if the bank were to fail, the government would give you the money you lost.

Pros and Cons of Raisin

There’s a lot to like about Raisin’s multi-bank platform, but that doesn’t mean it’s perfect. This Raisin Review is designed to give you a well-rounded perspective, so here are the pros and cons to consider.

Pros

• All partnering banks and credit unions are FDIC-insured. That means the first $250,000 deposited with each institution will be guaranteed by Uncle Sam.
• There are 40 banks and credit unions available to U.S. customers. That gives you a lot of savings accounts and CDs to choose from.
• You can get high-interest rates on your savings. With so many accounts on offer, you can find APYs as high as 5.51% (rate accurate at the time of this publication). 
• The minimum deposit is only $1. With Raisin, you don’t need a head start to begin earning interest on your savings. 

Cons

• There are no checking accounts available. That means you shouldn’t use Raisin for all your banking needs since you’ll want a checking account somewhere else. 
• You can’t receive direct deposits or make cash deposits. That means you’ll need to fund your accounts with transfers from another bank.
• It takes 1-3 business days to transfer money into your account. You can’t start earning interest on your savings until the transfer is complete. 

Raisin Reviews

Raisin only gets 2.1 stars from users on Trustpilot. Honestly, that’s pretty bad – but it doesn’t mean Raisin isn’t worth considering. Let’s dig a little deeper to see what people are actually saying about the company.

In a 5-star Raisin review, a customer says they had “no problems at all.” They also mentioned that they successfully called support to change the email address associated with their account.

Another Raisin customer sums up their experience by saying, “So far so good.” They also hit back at some of the negative reviewers, claiming that the key is to understand Raisin’s business model before signing up. 

A lot of the negative reviews focus on spotty customer service. 

In a 2-star Raisin review, someone complained that “no one answers the phone.” This person also mentions that it’s “safer to go with a real bank,” – but I wouldn’t put too much stock in this assessment. My research confirms that the accounts on Raisin’s platforms are all FDIC-insured.  

And in a 1-star Raisin review, someone said that the company’s “phone customer service is nearly non-existent.” Not only were they left on hold, but they also didn’t appreciate the company’s choice of music. I think we can all commiserate on that one!

Raisin Reviews Reddit

I found a Reddit thread with someone asking about Savebetter.com, which was Raisin’s former name in the U.S.

Apparently, they thought the interest rates seemed “too good to be true.”

*Note: The interest rate mentioned in the post is lower than what you can find at the time of this publication. That’s because interest rates at banks change with the general interest rate climate, and interest rates have been steadily rising.

Someone responded by sharing the fine print from the SaveBetter (now Raisin) website.

Another user pointed out that Raisin’s “reviews aren’t the best.” 

They also mentioned that the APY at the time wasn’t enough to outpace inflation. But don’t worry,  the situation has changed since then. Now, the highest APYs on Raisin are higher than the inflation rate.

Raisin Reviews BBB

Raisin is accredited by the Better Business Bureau, and it has an A- rating. This rating is based on 33 customer complaints. 

But among the 15 customer reviews on the BBB website, Raisin only averages 2.87 stars. 

What should you make of all this? 

Here’s my take: Customers often complain about Raisin, usually because of the customer service. But customer service is often a weak point with digital services like Raisin. 

I’d put more stock into the A- rating that actually comes from the BBB. It shows that Raisin is transparent and generally trustworthy. 

Is Raisin Worth It?

Raisin is absolutely worth it for anyone who wants to easily maximize the interest earned on their savings.

With Raisin, you can take advantage of the best interest rates from different banks without having to go through the hassle of making multiple accounts. More earnings, with no more work? Count me in!

Of course, Raisin isn’t for everybody. If you want to have all your bank accounts (including your checking account) on a single platform, then Raisin isn’t for you. That’s because there simply aren’t any checking accounts available on the platform.

And if you really value having your own account number with every bank, then Raisin’s “custodial account” model might be disappointing.

But ask yourself these questions:

• Are you okay with Raisin placing your money in the bank for you?
• Do you already have a checking account that you can use to fund the products you open through Raisin?
• Is your main goal to earn interest?

If you answered, “Yes, yes, and yes,” then Raisin is the platform for you!

Commonly Asked Questions About Raisin

What are Alternatives to Raisin?

While Raisin’s business model is pretty unique, there are plenty of other options for online banking – and most offer high yields. 

Here are some Raisin alternatives to consider:

• CIT Bank (read CIT Bank review here)
• Quontic Bank (read Quontic Bank review here)
• SoFi

And to learn which budgeting app could best help you manage your finances and boost your savings, check out these comparisons of Rocket Money vs the competition:

• Rocket Money vs YNAB
• Rocket Money vs Simplifi
• Rocket Money vs Copilot

If you’re looking for a low-tech, hands-on budgeting method, learn about cash envelope categories. And if you need to boost your savings fast, the 60/30/10 rule budget can help.

Then use a net worth tracker to see how your new financial strategies are paying off. 

Is Raisin a Scam? 

Don’t be scared by the reviews. Raisin definitely isn’t a scam! Sure, some people have issues with customer service, but Raisin is a totally legitimate company. It has an A- rating from the Better Business Bureau (BBB) and over a million customers around the world. 

What is The Catch With Raisin?

There is no “catch” with Raisin. Just be aware of the fact that you can’t set up direct deposit with the products you get through Raisin. Why? Because you won’t have your own account with the partnering banks. Instead, your money will be pooled with funds from other Raisin customers. 

Is Raisin a Sharia Bank? 

Raisin itself isn’t a Sharia bank. In fact, it isn’t a bank at all. Raisin is a platform that connects customers with banking products from other institutions. But the UK version of Raisin offers products that are Sharia-compliant.

How Do You Withdraw Money From Raisin?

You can withdraw money from Raisin by logging in to your online account and then navigating to the “Account Overview” page. From there, you’ll be able to transfer money to your checking account.

Is Save Better by Raisin Safe?

Raisin, formerly known as SaveBetter, is 100% safe. All of the banks and credit unions on the platform are FDIC-insured. And even though you won’t technically have your own account with these institutions, the first $250,000 you deposit will still be protected.