Custodial accounts: Keeping the funds deposited through the Raisin platform secure
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One of the joys of having a Raisin account is the simplicity of a single login to manage all of your savings accounts.
Typically, in order to open accounts with multiple banks and credit unions, you would have to spend a lot of time researching each institution, share sensitive information with each one, and then manage all of the associated account logins and paperwork.
In contrast, when you create a no-fee Raisin login, you can browse top rates from a network of federally regulated banks and credit unions, then open and manage new accounts all from a single dashboard.
That leaves the question: how does Raisin work?
It may sound like magic, but it really all comes down to custodial accounts.
What is a custodial account?
Custodial accounts are basically a financial account that one person or party opens and maintains for the benefit of another person. For example, a common type of custodial account is that created by a parent or guardian for a minor child.
In the case of Raisin, our goal is to keep your funds as safe and secure as possible. To do so, we work with federally regulated banks that act as the custodians of your funds. These custodian banks open accounts at each of our partner banks or credit unions and hold the funds there for the benefit of our customers.
This means that Raisin never touches your funds and that all funds in the Raisin platform are always held by a federally regulated financial institution. When you make a deposit, that money is directly transferred from your bank to a custodial account at the financial institution offering the product you selected.
Are custodial accounts safe?
Custodial accounts have existed for decades in the U.S. banking system and are protected by multiple fail-safes at each institution to ensure your funds remain safe.
Individual holdings within each custodial account are identified by a unique customer ID number and are accounted for in both Raisin’s records as well as a daily file we share with the custodian bank. This means that the custodian bank always has a record of all customers’ balances across all of our partner banks and credit unions.
What else do I need to know about custodial accounts?
Besides reading, understanding, and agreeing to the Custodial Agreement as part of opening a Raisin account, that’s about it!
The simplicity of the Raisin platform means that all of the financial intricacies are handled by our platform, meaning you have more time to focus on ensuring you’re reaching your own financial goals and that your savings are growing at competitive rates.
Haven’t started your savings journey with Raisin yet? Click below to view the current top offers, sign up in minutes, and begin earning more from your cash.
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The Raisin name and logo are trademarks of Raisin SE. All other trademarks, logos, marks, and brand names are the property of their respective owners.
*APY means Annual Percentage Yield. APY is accurate as of April 18, 2026. Interest rate and APY may change after initial deposit depending on the terms of the specific product selected. Minimum opening deposit is $1.00.
Raisin is not an FDIC-insured bank, and FDIC deposit insurance only covers the failure of an insured bank.
Raisin is not an NCUA-insured credit union. NCUA deposit insurance only covers the failure of an insured credit union.
Raisin does not hold any customer funds. Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered by the applicable bank or credit union through Raisin.com. Each customer also authorizes the Service Bank to move funds among the various banks and credit unions at the customer’s request. First International Bank & Trust (FIBT), Member FDIC, is the Service Bank. Bell Bank and Starion Bank, each Member FDIC, are the Custodial Banks.
†Based on $250,000 in FDIC or NCUA insurance coverage per insurable category of ownership at each partner bank or credit union on the Raisin platform (each a "Product Bank"), when aggregated with all other deposits held by you at such Product Bank and in the same insurable category. Deposits made through Raisin will be eligible to receive deposit insurance from the FDIC or the NCUA (each a "Deposit Insurer") in accordance with and up to the maximum amount permitted by law at each Product Bank. Raisin is not a bank or credit union and does not hold any customer funds. Funds are held at FDIC-insured banks and NCUA-insured credit unions. Deposit insurance covers the failure of an insured bank or credit union. Certain conditions must be satisfied for pass through deposit insurance coverage to apply. Customers may choose to deposit funds with identically registered accounts at different Product Banks on the Raisin platform to be eligible for Deposit Insurer coverage up to $10 million for individual accounts and $20 million for joint accounts when at least 40 Product Banks are utilized. Please be aware, however, that any deposits you have at a Product Bank, whether through the Raisin platform or outside the Raisin platform, that you may hold in the same capacity (such as in an individual capacity or joint capacity) count toward the applicable Deposit Insurer's deposit insurance maximum amount, and any such amounts that you hold in the same capacity at a Product Bank that exceed the maximum insurance coverage by the applicable Deposit Insurer will not be insured. For more information on FDIC deposit insurance, please see here. For more information on the NCUA share insurance fund, please see here. You are solely responsible for monitoring the amount of funds you have on deposit at each a Product Bank, whether through the Raisin platform or outside the Raisin platform, to confirm that the deposits you hold in the same capacity at each Product Bank do not exceed the maximum deposit insurance coverage provided by the applicable Deposit Insurer.