Raisin (SaveBetter) 2023 Review Pros, Cons, & Comparison

Raisin (SaveBetter) 2023 Review Pros, Cons, & Comparison

Raisin: Unlocking High-Yield Accounts and More

Have you been searching for a way to earn the best savings account, money market account, or CD rates? Look no further than Raisin! This digital marketplace is the answer to your financial dreams, connecting you with accounts that may be otherwise inaccessible. And the best part? You’ll earn higher rates than if you opened an account directly through one of its partner banks.

How Raisin Works

Raisin is a European company that has expanded its operations to the US under the name SaveBetter, which has now officially rebranded as Raisin. It acts as a platform that partners with banks and credit unions to offer you special interest rates when you open an account through Raisin. This means you can take advantage of high-yield savings, money market accounts, and fixed-rate CDs that are not available elsewhere.

Raisin has already established itself as a leading marketplace in Europe, working with over 400 banks and serving more than 1 million direct customers. Now, it is bringing its expertise and unique offerings to the US market.

The Benefits of Raisin

One of the key advantages of Raisin is the opportunity to earn high interest rates while supporting institutions with values that align with your own. Raisin partners with a diverse range of institutions, including community-driven and minority-owned banks. This means you can choose to support institutions like Ponce Bank, which is not only certified as a community development financial institution (CDFI) but is also Hispanic-American owned. Raisin even allows you to filter accounts based on the type of institution you prefer, such as minority-led, family-owned, or locally focused.

But is your money safe with these lesser-known banks? Absolutely. When you open an account through Raisin, you have the same level of protection as if you were opening an account directly with a bank. For banks, this means your funds are FDIC insured up to $250,000 in an individual account and up to $500,000 in a joint account. Credit unions provide NCUA insurance, ensuring the safety of your funds.

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It’s worth noting that membership requirements for credit unions can sometimes be restrictive. However, when opening a credit union account through Raisin, you only need to sign a membership agreement, avoiding any associated fees or restrictions.

Accessing Your Funds with Raisin

While Raisin offers incredible interest rates and supports a wide range of institutions, it’s important to consider the trade-offs. Raisin does not offer checking accounts, so you’ll need to maintain a checking account at another institution for your day-to-day banking needs.

To access your funds with Raisin, you’ll need to link your Raisin account to an external account and initiate transfers between the two. It’s important to note that these transfers can take one to three business days to complete. That’s why it’s recommended to always keep a checking account at a separate bank to ensure timely access to your savings.

The Account Options

Raisin offers several types of high-yield accounts to suit your specific needs:

High-yield Savings and Money Market Accounts

Traditional savings accounts at national banks typically offer minimal interest rates, often accompanied by monthly fees. In contrast, Raisin’s partner savings and money market accounts provide significantly higher interest rates with no monthly fees. For example, with Raisin, you could earn 5.00% APY on a $10,000 deposit in a year, compared to a mere $5 with a traditional bank offering a 0.05% APY.

Fixed-rate CDs

If you prefer a stable interest rate, fixed-rate CDs offered through Raisin are the way to go. These CDs lock in your rate for a pre-determined term length, ensuring a guaranteed return on your investment. Additionally, Raisin allows you to open a CD with just $1, regardless of the partner bank you choose. This is particularly advantageous as many banks typically require several hundred or even thousands of dollars to open a CD.

However, keep in mind that accessing your funds before the CD term ends may incur early withdrawal penalties. Raisin provides information on these penalties, allowing you to make an informed decision when selecting a CD.

No-penalty CDs

For added flexibility, Raisin offers no-penalty CDs. These CDs allow you to withdraw funds before the term ends without incurring any penalties. While no-penalty CDs are not widely available, Raisin provides you with the opportunity to explore this option and expand your financial choices.

Alternatives to Raisin

While Raisin is an excellent choice for those seeking higher interest rates and a diverse range of institutions, it’s essential to consider alternatives based on your unique needs. Some alternatives to consider include opening a high-yield account directly with a bank or opting for a financial institution that offers both high-yield savings accounts and checking accounts.

Opening a high-yield savings account directly with banks like Popular Direct or Salem Five Direct may provide some of the highest rates in the market. However, these banks do not have a partnership with Raisin, and direct deposits may not be possible with Raisin.

For a more streamlined banking experience, you could choose institutions such as Ally, Capital One 360, or Alliant Credit Union, which offer high-yield savings accounts and checking accounts. This allows for easier and instant transfers between accounts, giving you quick access to your funds.

Trustworthiness and BBB Rating

To gain confidence in using Raisin, it’s essential to understand its trustworthiness. The Better Business Bureau (BBB) provides valuable insights into a company’s practices and customer complaints. Raisin currently holds an A grade from the BBB, highlighting its commitment to transparency and resolution of any customer issues.

While Raisin has received some complaints, it’s important to consider these alongside positive customer reviews and personal recommendations when making your decision.

Conclusion

Raisin is revolutionizing the way individuals access high-yield accounts by connecting them with a diverse range of partner banks and credit unions. With the ability to earn superior interest rates and support institutions with specific values, Raisin offers a unique and compelling proposition. While the lack of checking accounts might require additional banking arrangements, the benefits of Raisin far outweigh this inconvenience.

Explore the variety of high-yield accounts available through Raisin, whether it’s a savings account, money market account, fixed-rate CD, or no-penalty CD. By considering your financial goals and personal preferences, you can make the most of Raisin’s offerings and take control of your financial future.

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