Is Raisin Legit? How It Works and Whether Your Money Is Safe
Raisin is a savings marketplace, not a bank: your money is held at FDIC insured partner banks through custodial accounts. How pass through insurance works, current rates and the downsides.
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Yes. Raisin is a legitimate savings marketplace, not a bank. It lets you open savings accounts and CDs at more than 100 partner banks and credit unions with one login, and your money is held at the FDIC insured bank or NCUA insured credit union you choose, eligible for pass through insurance up to $250,000 per depositor, per institution, per ownership category if certain conditions are met. The trade off: you are not a direct customer of that bank, so you manage everything, including transfers and support, through Raisin. Checked on Raisin’s website on Nov 3, 2026.
Raisin shows up next to some of the highest savings rates online, often for banks you cannot open accounts with directly at that rate. That makes people wonder whether it is safe. Here is how it works, who actually holds your money and what to watch out for.
How does Raisin work?
- You open one Raisin account and verify your identity once.
- You pick products from partner banks and credit unions: high yield savings, CDs and no penalty CDs.
- You move money from your linked bank through Raisin. The minimum deposit is $1.
- Raisin earns money from its partner banks, so it charges you no platform fees.
From Raisin’s website and FAQs, checked Nov 3, 2026. Raisin says it has more than 1 million customers.
Who holds your money?
| Role | Who |
|---|---|
| The bank you choose | Holds your deposit in a custodial account for your benefit (for example, Western Alliance Bank or BMW Bank) |
| Custodial banks | Bell Bank and Starion Bank, each Member FDIC, hold customer funds in custodial accounts |
| Service bank | First International Bank and Trust (FIBT), Member FDIC, moves money between banks at your request |
| Raisin | Runs the platform and keeps the records; it is not a bank and does not hold customer funds |
From Raisin’s disclosures, checked Nov 3, 2026.
Because of this setup, you do not become a direct customer of the bank you choose. Your deposit still counts toward that bank’s $250,000 FDIC limit, together with any money you hold there directly in the same ownership category.
Is money on Raisin FDIC insured?
Yes, through pass through insurance, if the conditions are met. Pass through coverage depends on the custodial records showing the money is yours. Raisin says that by spreading money across at least 40 partner banks, you can get up to $10 million of coverage on individual accounts and $20 million on joint accounts.
Insurance covers the failure of the partner bank or credit union. It does not cover the failure of Raisin itself, so the record keeping matters. That is the main difference from opening an account directly at an FDIC insured bank.
For how pass through coverage works, who holds the money and what it does not cover, see is Raisin FDIC insured?
Is Western Alliance Bank through Raisin legit?
Yes. The Western Alliance Bank High Yield Savings account on Raisin is offered by Western Alliance Bank, an FDIC insured bank (certificate 57512). Your money is held in a custodial account at Western Alliance for your benefit and is eligible for pass through FDIC insurance up to $250,000 per depositor, per ownership category. You open and manage it through Raisin. At our Nov 7, 2026 check it paid 4.30% APY for the first 90 days, then a standard 4.00% APY (as of Oct 27, 2026, per Raisin). Balances in this account and Western Alliance’s direct Premier account share one FDIC limit. Read our Western Alliance on Raisin review and is Western Alliance Bank legit?
Is BMW Bank through Raisin legit?
Yes. BMW Bank of North America is an FDIC insured bank (certificate 35141) owned by BMW Financial Services NA. Its High Yield Savings account is available only through Raisin, and deposits are eligible for pass through FDIC insurance. It paid 4.15% APY at our Nov 7, 2026 check (per Raisin). Read our BMW Bank review and is BMW Bank legit?
What rates can you get on Raisin?
| Savings account on Raisin | APY | Note |
|---|---|---|
| Northpointe Bank | 4.30% | 60 day rate lock for new Raisin users |
| Western Alliance Bank | 4.30% | 90 day rate lock for new Raisin users, then 4.00% APY (as of Oct 27, 2026) |
| Valley National Bank | 4.20% | |
| CNB Bank | 4.17% | 60 day rate lock for new Raisin users |
| BMW Bank of North America | 4.15% |
APYs as of Nov 4, 2026, from Raisin’s savings listings, checked Nov 3, 2026. Rates are variable; a rate lock moves to the standard variable rate when the lock ends.
Some of these differ from what the same bank pays when you open directly. For example, Western Alliance’s own high yield savings account is listed at a lower rate in our Western Alliance review. We also review Western Alliance on Raisin and BMW Bank.
Western Alliance Bank High Yield Savings
Earn 4.30% APY with a 90 day rate lock with Western Alliance Bank's high yield savings- Limited time: use code STACK for a cash bonus up to $1,000*
- No direct deposit, account fees or balance requirements
- Deposits held by Western Alliance Bank, Member FDIC
- FDIC insurance up to $250,000 for individual accounts and $500,000 for joint accounts
BMW Bank High Yield Savings
Earn 4.15% APY with BMW Bank's high yield savings, exclusively on Raisin- Limited time: use code STACK for a cash bonus up to $1,000*
- No direct deposit, account fees or balance requirements
- Deposits held by BMW Bank of North America, Member FDIC
- FDIC insurance up to $250,000 for individual accounts and $500,000 for joint accounts
What are the downsides?
- No direct relationship with the bank. Questions, transfers and tax forms all go through Raisin.
- Support hours are limited: Monday to Friday, 8 am to 8 pm ET (844 994 3276 or support.us@raisin.com).
- Rate locks end. A 60 or 90 day locked rate drops to the bank’s standard variable rate afterward.
- Coverage limits still apply per bank. If you already bank directly with one of Raisin’s partners, both balances count toward the same $250,000.
Does Raisin have a sign up bonus?
Yes. New customers who use code STACK and start their first deposit by Nov 30, 2026 can earn $40 to $900, plus up to $100 more, depending on how much they deposit and keep for 90 days. See the Raisin STACK bonus explained.
Deciding which Raisin savings account to open? Compare BMW Bank vs Western Alliance on Raisin.
Frequently asked questions
Is Western Alliance Bank through Raisin legit?
Yes. Western Alliance Bank is FDIC insured (certificate 57512). Its High Yield Savings account on Raisin holds your money in a custodial account at Western Alliance, eligible for pass through FDIC insurance up to $250,000 per depositor, per ownership category.
Is BMW Bank through Raisin legit?
Yes. BMW Bank of North America is FDIC insured (certificate 35141) and owned by BMW Financial Services NA. Its High Yield Savings account is offered only through Raisin.
Is Raisin a bank?
No. Raisin is a savings marketplace. It does not hold customer funds; your money is held at the FDIC insured banks or NCUA insured credit unions you choose, through custodial accounts.
Is my money FDIC insured on Raisin?
It is eligible for pass through FDIC or NCUA insurance up to $250,000 per depositor, per institution, per ownership category, if certain conditions are met. The insurance covers the failure of the partner bank, not Raisin.
Does Raisin charge fees?
Raisin says its platform is free, with no platform fees, and the minimum deposit is $1.
Do I become a customer of the bank I choose on Raisin?
No. Your funds are held for your benefit at that bank through custodial accounts, and you manage the account through Raisin.
How do I contact Raisin?
Raisin’s support team is available Monday to Friday, 8 am to 8 pm ET, at 844 994 3276 or support.us@raisin.com.
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