Is Raisin FDIC Insured? How Pass Through Coverage Works

Raisin lists savings accounts and CDs from many banks you have never heard of, so it is fair to ask what protects your money. The short version: the same FDIC insurance as a direct bank account, delivered through a setup called pass through coverage. Here is how it works and where its limits are.

Who actually holds your money on Raisin?

Per Raisin’s own disclosures, checked Nov 11, 2026:

• Raisin is a marketplace. Raisin says it is not an FDIC insured bank or NCUA insured credit union and does not hold any customer funds.
• Custodial banks: Bell Bank and Starion Bank, each Member FDIC, hold customer funds in custodial deposit accounts.
• Service bank: First International Bank and Trust (FIBT), Member FDIC, moves money among the partner banks at your request.
• Partner bank: the bank or credit union whose product you pick, such as BMW Bank or Western Alliance Bank, holds the deposit for your benefit. You do not become a direct customer of that bank.

What is pass through FDIC insurance?

When a third party opens a bank account on behalf of many customers, the FDIC can insure each customer’s share as if they had deposited it directly. The FDIC lists three conditions:

1. You own the money. “Funds must be in fact owned by the principal and not by the third party who set up the account.”
2. The bank’s records show the custodial setup. “The IDI’s account records must indicate the agency nature of the account.”
3. Each owner and amount can be identified. The records must “indicate both the identities of the principals as well as their ownership interests in the deposit.”

Raisin says certain conditions must be met for pass through coverage to apply, which is the standard wording for every platform of this kind.

What happens if the conditions are not met?

The FDIC says the deposit is then insured “as the deposits of the named account holder”, usually the custodian, and combined with that holder’s other deposits at the bank up to $250,000. In that case part of the money could be uninsured. This is why the record keeping behind a platform matters, and why a regulated custodian bank sits between you and the partner bank.

What does FDIC insurance not cover on Raisin?

Raisin states that “FDIC deposit insurance only covers the failure of an insured bank” (and NCUA insurance only the failure of an insured credit union). It is not insurance against Raisin itself having a problem. Raisin says it does not hold customer funds; the money sits in custodial accounts at FDIC insured banks for your benefit.

How much can you insure through Raisin?

Coverage is $250,000 per depositor, per ownership category, at each partner bank. Raisin says that spreading savings across its partners can give access to more than $10 million in total coverage. Two savings accounts we track on Raisin:

Account on Raisin	Partner bank	FDIC certificate	APY (checked Nov 11, 2026)
BMW Bank High Yield Savings	BMW Bank of North America, Salt Lake City, UT	35141	4.15%
Western Alliance Bank High Yield Savings	Western Alliance Bank, Phoenix, AZ	57512	4.30% for 90 days (new Raisin users), then 4.00%

Certificates confirmed active in the FDIC’s BankFind data on Nov 11, 2026. Rates from Raisin; variable and may change.

Because these are separate banks, one person could keep up to $250,000 at each under single ownership, and a joint account adds up to $250,000 per joint owner at each bank. One catch: money you hold directly at the same bank counts toward the same limit. Western Alliance’s direct Premier account and its Raisin account are both Western Alliance Bank. See Raisin vs Premier.

How do you check your own coverage?

• Look up the partner bank’s certificate in the FDIC’s BankFind before you deposit.
• Add up everything you hold at that bank in the same ownership category, including any direct accounts.
• Keep each bank under $250,000 per category, or use a joint or trust account to raise the limit. Our guide on how to insure more than $250,000 walks through the rules.

Is Raisin legit?

Yes. Raisin is an established savings marketplace, and the accounts on it are offered by FDIC insured banks and NCUA insured credit unions. The trade off is service: you manage transfers and support through Raisin, not the bank. Read is Raisin legit?, compare BMW Bank vs Western Alliance on Raisin, and see every account we rank in our best FDIC insured savings accounts.

Frequently asked questions

Is Raisin FDIC insured?

Raisin itself is not a bank, but deposits made through it are held for your benefit at FDIC insured banks or NCUA insured credit unions and are eligible for pass through insurance up to $250,000 per depositor, per ownership category, at each partner bank, if the conditions are met.

Who holds my money on Raisin?

Per Raisin, custodial banks Bell Bank and Starion Bank (each Member FDIC) hold customer funds in custodial accounts, and First International Bank and Trust (Member FDIC) moves funds among partner banks. The deposit itself sits at the partner bank you choose.

Does FDIC insurance cover me if Raisin fails?

Raisin says FDIC insurance only covers the failure of an insured bank. Raisin does not hold customer funds; they are held in custodial accounts at FDIC insured banks for your benefit.

How much can I insure on Raisin?

Up to $250,000 per depositor, per ownership category, at each partner bank. Raisin says spreading savings across partners can give access to more than $10 million in total coverage.

Are BMW Bank and Western Alliance insured separately on Raisin?

Yes. They are separate FDIC insured banks (certificates 35141 and 57512), so each has its own limit.