About Short-Term CD Accounts
How to Choose a Long-Term CD
If you're looking to grow your savings for the long term, a 3+ year CD could be the right option.
With Raisin, you can find some of the nation's top long-term CD rates — all accessible from a single account. Plus, all of the offerings are from federally insured banks and credit unions, meaning you can rest assured your funds are secure up to institutional limits.
Want to save for the long term? Here are some key elements to understand about CDs before investing your funds.
Interest rate and APY: A certificate of deposit's Annual Percentage Yield (APY) includes the CD's base interest rate while also taking into account how frequently interest is compounded. You can use this number to calculate your potential earnings over the CD's term.
Security: Your funds will be growing for a long time, so it's important to understand how those hard-earned dollars are protected. Making sure your funds are held by an FDIC-insured bank or NCUA-insured credit union is one of the easiest ways to know your funds are safe up to the per-institution limits.
Minimum deposit: On Raisin, it only takes $1 to start earning at competitive interest rates.
Fees and penalties: One of the key features of fixed-term CDs is that you're agreeing to deposit funds for a set period of time in exchange for a fixed interest rate. If you need funds before that term is up, you may incur penalty feeds. Make sure you understand a CD's terms and potential penalties before depositing.
Compound interest schedule: Your earnings could be impacted by how your interest compounds. Check your CD's terms to see if it compounds daily, monthly, or annually.
How Does a CD Account Work?
When it comes to opening a long-term CD, make sure you understand how certificates of deposit work in order to get the most out of your funds. Take a look below to learn more about how CDs differ from other types of deposit accounts and how to make sure your investment is protected.
Fixed Term And Interest Rate
The two major differentiators of certificates of deposit is that funds are deposited for a set period of time and that the bank or credit union agrees to a fixed interest rate. While interest rates on high-yield savings accounts can vary over time, CDs allow for a predictable, guaranteed return on investment.
Because of their fixed terms, CDs often have the highest possible interest rates of deposit products, which can make them appealing to risk-averse savers.
The end of the certificate of deposit's term is known as its maturity. date. Once a CD reaches maturity, you can either roll over your CD into a new term with a new interest rate or withdraw your funds to either spend or use for some other form of investment.
Types of CDs
There are various types of CDs to consider based on your savings goals and the liquidity you need:
Fixed-term CDs: These are the more common certificates of deposit in which there is a guaranteed interest rate but funds accessed prior to the maturity date incur penalty fees.
No-penalty CDs: No-penalty CDs can provide greater flexibility, with withdrawals prior to maturity not incurring fees. In exchange, no-penalty CDs will typically have lower interest rates than fixed-term CDs.
Certificates of deposit can be a very safe way to grow your savings, especially when they're offered by federally insured financial institutions. FDIC-insured banks and NCUA-insured credit unions guarantee deposits up to $250,000 per depositor, per account, per institution, giving a greater deal of protection compared to stocks or ETFs.
Best of all, all banks and credit unions on the Raisin platform are federally insured.
Taking into account liquidity is key for any deposit, but can be extremely important for long-term savings. Here's what you need to know:
CD accounts: Fixed-term CDs will often incur penalties for early withdrawal in order to encourage depositors to keep funds for the agreed term. Keep this in mind when selecting a CD term..
High-yield savings accounts: These accounts may have limits on withdrawals (those on Raisin do not), however they are typically considered much more liquid than CDs and can be a great option for shorter-term savings or emergency funds.
Benefits of Certificates of Deposit (CDs)
Certificates of deposit, also known as CDs, are a type of deposit account offered by banks and credit unions. CDs allow you to earn interest on your money like other deposit accounts, such as a savings account, but there are some key aspects that make CDs unique. Notably, CDs tend to offer among the highest available interest rates of all banking deposit products.
Unlike savings accounts or money market accounts, you can deposit a set amount of money into your CD account and commit to leaving your money there for a fixed period of time. Terms may last as little as three months, or as long as five years (60 months) or even longer. In return, you'll earn a fixed amount of interest based on a predetermined interest rate. The rate of a CD typically does not change during the term, which is why you may see the product called a fixed-term CD. Another type of CD is a no-penalty CD, which gives the owner more flexibility to withdraw funds before the CD's maturity date.
When the CD term is up — when the product has reached maturity — you’ll be able to withdraw your original balance plus any interest earned, or opt to rollover all or part of those proceeds into a new CD with a new term. A key benefit of opening a CD is you’ll know exactly how much of a return you’ll receive when your money is ready to withdraw at the maturity date you selected.
CD Accounts vs. High-Yield Savings Accounts
Tips for Using Certificates of Deposit
There are a host of advantages to leveraging certificates of deposit (CDs) to boost your savings. You are likely to earn more interest with a CD compared to that of a competitive high-yield savings account. Plus, the interest rate you earn for the duration of the CD term won’t fluctuate over time. And you can pick a term to fit your needs. This feature allows you to structure CDs in sequences, such as the CD ladder, which provides periodic access to savings while tapping the highest available interest rates of the longest-term products.
Click the button to read more about how to maximize your savings with CDs.
What Is Raisin?
Raisin brings together high-yielding savings products offered by a network of U.S. financial institutions. It’s your destination to discover competitive savings products and start saving wisely. Select and fund multiple savings products from different institutions and manage them all from one account.
Funds deposited into any of the savings products available through Raisin are always held by a federally insured financial institution. A very easy and safe way to diversify your deposit portfolio. We use a host of cybersecurity measures to protect your funds and sensitive information.
Savings products from our network of financial institutions offer flexible terms and some of the most competitive interest rates. You can easily find the right product or mix of products for you.
One account to hold all your deposit products. Simplified statements. Easy access to manage your funds – all through a streamlined digital platform.
How Raisin Protects Your Money and Personal Information
Federal Deposit Insurance Corporation
National Credit Union Administration
Cybersecurity is a top priority at Raisin
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the right product for your savings goals.
with an email address and password, then verify your identity and bank information.
the savings products you add to your new Raisin account.
How Raisin Compares
Raisin is a digital platform that gives savers unparalleled access to a variety of deposit products through the convenience of a single account, helping you unlock the growth potential of your cash savings.
Raisin customers use the platform to fund federally insured deposit products offered by numerous U.S. banks and credit unions with a wide range of maturities and APYs (annual percentage yield), allowing you to build a savings strategy to suit your earning and liquidity needs.
Raisin is not a bank. It provides the digital “storefront” where banks and credit unions can promote their deposit products.
Raisin is operated by Raisin LLC, a 100% subsidiary of Raisin GmbH, a trailblazer for open banking in the deposits and investments space. In the U.S., Raisin helps banks and credit unions improve their deposit funding by offering national reach for their retail deposit products, and provides savers with better access, more choice and higher convenience when evaluating savings products from FDIC insured banks and NCUA insured credit unions.
Your Raisin account gives you access to savings accounts and certificates of deposit offered by a variety of banks and credit unions with the security of federal deposit insurance. These products include:
High-yield Savings Account (HYSA). As its name indicates, this account type functions like a traditional savings account — with typically no restrictions on depositing and withdrawing funds — but earns interest (or dividends in the case of credit union savings products) at rates that are higher than the national average for standard savings accounts.
Money Market Deposit Account (MMDA). Also known as a money market account or MMA, this type of savings account offers a varying rate that allows you to earn interest (or dividends) on your funds with maximum flexibility for withdrawals. Like a HYSA, an MMDA offers features of a traditional savings account with typically higher returns.
No Penalty CD. Through the flexibility of a No Penalty CD, you can lock in a competitive rate for a fixed term with the option to make a full withdrawal without having to pay a penalty for the early termination. Terms and conditions may vary by product. Please see specific product terms for more details.
Fixed Term CD. With this longstanding savings vehicle, funds are held for a fixed term, and a competitive APY (annual percentage yield) provides safe, predictable earnings. In contrast to No Penalty CDs, typically you are charged a fee if you do not complete the full term of the Fixed Term CD.
Interest (or dividend in the case of credit union savings products) is compounded daily and posted to your account monthly.
The short answer is yes! Raisin exclusively partners with FDIC-insured banks and NCUA-insured credit unions.
For Raisin customers who hold savings products offered by one of our partner banks, funds are insured by the FDIC up to the maximum amount in accordance with and as permitted by law at each bank holding their funds. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per account ownership category. Ownership categories as defined by the FDIC include single bank accounts (owned by one person/depositor) and joint bank accounts (owned by two or more persons/depositors). Revocable trust accounts and some types of retirement accounts (e.g., IRAs) are among the other ownership categories covered by FDIC insurance. All deposits you have at a bank — whether made through Raisin or otherwise — count toward the deposit insurance limit. If funds held at a bank in a certain ownership category exceed the coverage limit, then the amount in excess of the limit will not be insured.
For Raisin customers who hold a savings product offered by one of our partner credit unions, funds are insured by the NCUA through its Share Insurance Fund. According to the NCUA, each credit union member has at least $250,000 in total coverage. The Share Insurance Fund insures individual accounts up to $250,000. Additionally, a member’s interest in all joint accounts combined is insured up to $250,000.
At Raisin, cybersecurity is our priority. Raisin is a SOC 2 certified platform, meaning it has been validated by outside auditors across five (5) key information security principles. We also use a variety of measures to protect our customers' data, privacy and transactions, including:
• User authentication. The Raisin platform uses multi-factor authentication combined with leading authentication technology to validate our customers’ identities.
• Data encryption. Your personal information is encrypted in-transit and at rest using advanced cryptographic security algorithms.
• Site protection. Web application firewall advanced internet protection technologies are implemented to protect Raisin.com from malicious actors, botnets and denial of service attacks (DDOS).
• Monitoring. An always-on information security monitoring platform detects and alerts us to information security events.
• Assessments. Our platform undergoes vigorous security assessments and testing throughout the lifecycle of application development, from architecture planning to production phases.
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A. Check out our savings marketplace and choose a product in which you would like to deposit money.
B. Create your username and password.
C. Complete an application and, after successful identity verification, link a bank account from which to fund your first savings product.
D. Start earning interest as soon as your money is received by the bank or credit union offering the savings product you selected.
Any questions or concerns? Email us at email@example.com.
All deposits and withdrawals are completed within one to three (1-3) business days. After the initial deposit a withdrawals limitation for the first few business days may exist.
Business days are Monday through Friday excluding U.S. bank holidays.
For products offered by banks, all necessary registration is handled when you become a Raisin customer. One of the many benefits of our platform is that you can open a single account and earn competitive interest rates from banks in the Raisin network. When you select and fund a savings product offered by a credit union, there is an additional step of becoming a member. Raisin makes that process quick, easy and free. You still have one Raisin login and can view all your savings products in one convenient dashboard.
The current APY for your savings products can always be viewed on the Account Overview page when you are logged in to Raisin. This information also appears on monthly statements.
You cannot currently link your Raisin account to a third-party app, but we may offer this feature in the future. For now, you will not be able to link your selected savings product to a third-party app even if the bank or credit union offering that product does so outside of the Raisin platform.