‘Save With Purpose’ Using Raisin’s Single-Account Access to Partner Insured Savings and CD Products

In a Nutshell: Opening a new savings account can be a time-consuming and perplexing process. Raisin makes it convenient for consumers to compare, open, fund, and manage savings products. The company partners with banks and credit unions to provide access to more than 100 savings products from a single secure login. Raisin’s educational offerings help raise awareness of the importance of saving.

If you have a mailing address and are 18 years old or older, you’ve likely received promotional postcards from financial institutions inviting you to open an account with them. Financial institutions may even offer gifts, such as a blender or a gift card, to further incentivize you to take action.

But the gifts banks offer to prospects usually come with strings attached. Customers may be required to deposit a certain sum of money with their new bank via direct deposit or complete a certain number of debit card transactions within a specified time to receive their gift.

Banks attach strings to their offers to make it more difficult for customers to switch to another bank. Suppose you’re directing your paycheck to deposit into your new bank directly or completing transactions with your new bank’s debit card. Switching to another bank’s direct deposit services and using its debit card will take time and effort and will likely be inconvenient.

Raisin is a company that’s aware of how difficult it is to change banking institutions, and it offers customers convenience and security in opening new savings accounts. Raisin allows consumers to enroll in multiple savings vehicles through one secure login, making it easier for consumers to move their funds to the most attractive account.

Raisin was founded in Berlin, Germany, and operates throughout the European Union. The company launched in the U.S. in late 2020. We spoke with Ben McLaughlin, Raisin’s Chief Marketing Officer and President, to learn more about the company and its innovative savings solutions.

McLaughlin said Raisin has experienced significant growth in the U.S. since its launch, capitalizing on a strong interest rate environment.

“Raisin is free for consumers to use,” McLaughlin said. “We also provide financial education to help consumers learn saving strategies and recommended practices. Savers can use our site to select savings products offered by institutions whose values align with their own.”

Raisin allows consumers to open saving accounts, money market accounts, CDs, and no-penalty CDs, which allow them to avoid early withdrawal penalties.

McLaughlin said the products Raisin features offer interest rates that are among the best in the nation. The interest rates for CDs are usually higher than those for savings and money market accounts.

Banks and credit unions partner with Raisin to raise deposits and take advantage of Raisin’s marketing efforts.

“We’re constantly adding new financial institution partners,” McLaughlin said. “Some institutions we partner with have a relatively small footprint and may lack the necessary budget to invest in marketing their product nationwide. So, they come to us because that’s the only thing we focus on. And our partners are able to offer better rates in return.”

McLaughlin said consumers benefit by accessing products offered by institutions that they would not have heard of if not for Raisin. 

Consumers only open one account with Raisin, and they can then select from various savings products offered by the institutions on Raisin’s platform. 

After a consumer opens their Raisin account, which McLaughlin said can be accomplished in less than three minutes, they can link an external funding source, such as their primary checking account. Once their funding account is linked, consumers can choose which savings, money market, or CD accounts to move money into. 

Consumers who identify a product that appeals to them can transfer funds from their linked account to the institution offering the product. The transfer occurs over the ACH network within three business days.

“It’s a very convenient process,” McLaughlin said. “We try to make it as simple as possible for consumers. With just one login on one platform, they’re able to access more than 50 financial institutions and hundreds of savings products. At the end of the day, Raisin helps consumers save better.”

Consumers can have confidence in saving through Raisin. Either the FDIC or the National Credit Union Administration insures the savings products offered on Raisin’s website. 

As of December 2023, many of the savings products Raisin features offer interest rates of 5% or greater. McLaughlin said savings accounts are an attractive option for consumers seeking a fully liquid product. 

Raisin provides calculators on its product pages to help consumers compare how much they can grow their savings in different products.

Raisin employs a team of relationship managers who work with the company’s financial institution partners. McLaughlin said relationship managers ensure that product updates and rate changes are reflected as quickly as possible on Raisin’s website and marketing messages.

“Our team works very hard to make sure we’re delivering everything we can to our customers as fast as possible,” McLaughlin said. “We’ve got a very strong technology team who make our processes efficient and accurate.”

Raisin makes it simple for customers to move money within their savings accounts. Customers can make changes to their accounts themselves, but Raisin’s customer service team is available five days a week for customers who require assistance.

Consumers can begin saving through Raisin with just $1. McLaughlin said Raisin offers a $1 minimum deposit to prove to people that they will enjoy using the company’s services, regardless of how much they have available to save.

“We want to become people’s savings platform of choice, no matter how much they have to start with,” McLaughlin said. “Regardless of your age or financial situation, it’s important to start saving. Consumers who come to us to invest $1 get access to the same products and interest rates as anyone else. A lot of people, especially younger people or those who haven’t saved much before, are motivated to save more once they see how their money can grow over time.”

Raisin is committed to educating its customers on the power of saving. McLaughlin said the company provides savings guides to inform consumers how to make the most of their savings. The guides cover various topics, including tips for maximizing savings on a fixed income and starting an emergency fund. 

“One thing we want to instill in consumers is that whatever they are saving for — whether it’s a down payment on a house or an upcoming vacation — it’s important to start saving now,” McLaughlin said. “The amount they start with may not look like much at the beginning, but it’ll be a very different case in the future.”

Raisin empowers consumers to save with purpose. Raisin customers can use the company’s website to locate savings products offered by institutions that focus on specific attributes, including community development and charitable giving.

McLaughlin said Raisin seeks to give people an opportunity to save money with institutions that share values similar to their own.

“We really want people to be able to save the way they want to save while also earning a great return at the same time,” McLaughlin explained. “Obviously, we encourage people to select the products that work best for their personal financial goals, but we want to let them know that there’s a deeper layer. If they so choose, consumers can save with institutions that focus on supporting issues they care about. We believe that’s a great benefit for consumers.”