Benefits of a Savings Account
Savings accounts are key to a healthy financial strategy. They offer benefits like a stable and predictable return, high liquidity, and the backing of federal deposit insurance (look for the FDIC member designation for banks and NCUA for credit unions). A savings account is a type of account offered by a bank or credit union that enables you to put your cash to work and earn interest on the deposits you hold within them. Savings accounts typically offer higher interest rates than checking accounts, which are used for paying daily expenses through payment methods like debit cards and checks. Savings accounts are used to secure cash and grow your savings without sacrificing access to funds.
High-Yield Savings Accounts vs. Traditional Savings Accounts
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Tips for Using High-Yield Savings Accounts
What if you could earn more money from a savings account without doing too much more than what you’re already doing?
That’s the real benefit of a high-yield savings account (HYSA).
As the name implies, a HYSA offers just that — an opportunity to earn a higher yield, meaning more money, on your balance than that offered by a traditional savings account.
The better earning potential makes HYSAs a great option for storing your emergency funds or savings for various short-term goals, like a new car, a future vacation, or a down payment on a home.
There are plenty of HYSAs out there to choose from, but not all are created equal. Click the button below to read on about how to use a high-yield savings account to grow your money faster.
More About Savings Accounts
What is a savings account?
A savings account is a type of deposit account offered by financial institutions like banks and credit unions. Customers can hold cash in a savings account and earn interest on their funds while retaining liquidity, meaning they can still quickly access their reserves.
Depending on the institution, the deposits in a savings account may be federally insured through the FDIC (for banks) and the NCUA (for credit unions), with coverage typically covering up to $250,000 per depositor, per insured institution. Deposit insurance allows a saver to recoup cash held in a financial account in the rare event that the bank or credit union fails. The good news is that Raisin exclusively partners with federally insured financial institutions.
How does a savings account work?
The interest that a savings account earns is determined by its interest rate and the amount of money it holds. The interest rate is typically advertised in terms of APY, or annual percentage yield (APY is synonymous with the effective annual rate, or EAR). This value tells you how much interest the account pays on a yearly basis, depending on how frequently interest is compounded. Different banks and savings accounts may offer different compounding periods (in the case of accounts opened through Raisin, interest is compounded daily and posted monthly), but evaluating APYs allows you to compare rates consistently.
If your savings account balance goes down — say you withdraw funds to cover an expense — then your prospective interest earnings are affected. Maintaining or adding to your savings account balance, conversely, ensures that your savings grow. Left alone, a savings account’s earnings will grow in value thanks to the power of compounding interest.
Many banks encourage savings account holders to use this type of deposit product as a stable place to store cash rather than, say, a vehicle for day-to-day spending like a checking account. They do so through minimum balance requirements and limits on how many withdrawals or outbound transfers you can make per month. Banks don’t usually issue debit cards to make purchases directly from savings accounts either.
Raisin does not impose any restrictions on savings accounts. There is also no minimum balance requirement. Customers can open savings accounts with as little as $1, and there are no limits on the frequency of withdrawals.
How to open a savings account
The process of opening a savings account directly at a bank or credit union can vary. It usually involves the customer providing personal information that is used to verify their identity and eligibility. Some institutions allow customers to apply entirely online.
Opening a savings account through Raisin is a simple process that you can complete online in just a few minutes. When you set up a Raisin account, you create a central portfolio that can hold as many savings products as you want, from as many different institutions on our platform as you want. There’s just one application process that happens at signup. Raisin’s single, unified account dashboard shows you all your deposit products and their balances in one place.
Which bank has the best savings account
When determining the best savings account, you must take several factors into consideration. The first among them is the interest rate. Generally speaking, the higher the interest rate, the better your earning potential.
Beyond interest rates, there are also a few other things to consider when it comes to deciding on the best savings account for you. These can include:
FDIC or NCUA insurance coverage
The financial institution’s history
The financial institution’s philanthropic efforts
The financial institution’s mission and who they aim to serve
Associated fees or account limitations
Minimum balance requirements
Choosing the best savings account can be a complex decision that takes into account all of these dimensions. With Raisin, you can not only filter products based on the interest rates, but also based on attributes associated with the financial institution, such as whether they support small businesses or give back to their local communities, allowing you to bank with purpose.
What are the best savings account interest rates
Once again, the best savings account interest rates can vary and fluctuate based on several factors.
First among them is the type of financial institution involved. For instance, a traditional brick-and-mortar bank may offer a lower interest rate than a digital-first bank (a bank that operates solely online and has no physical branches). That’s because digital-first banks do not have high overhead costs, unlike traditional banks.
Second, savings account interest rates are tied to rates offered on other savings products such as bonds and money market accounts.
Finally, savings account rates are driven by interest rate benchmarks set by the U.S. Federal Reserve and their resulting influence on overall market conditions.
In summary, the best savings account rates are constantly changing. Use the Raisin comparison tool above to get the best options at any given time.
When would a savings account be the best investment to earn interest?
Savings accounts offer a suite of benefits to savers. Ease of use, high accessibility, and value-added services are just a few of them. But they can also be especially good interest-earning investments in several scenarios.
Savings accounts don’t require specialized financial understanding, elaborate market studies, or complex entry and exit strategies. All you need to do is pick the one that suits you best, whether that's due to the interest rate being offered, the financial institution’s history or philanthropic efforts, or if the account has any associated fees or limitations.
Savings accounts are great for long-term savings, whether you’re planning to buy a house or putting aside a nest egg for retirement. Your money is secure in a savings account and protected against a potential bank failure up to the federal deposit insurance limits as long as it is federally insured by either the FDIC (for banks) or NCUA (for credit unions).
Savings accounts are also great for emergencies when you need access to your money in a hurry. Unlike CDs or Treasury bonds, withdrawing money from savings accounts is comparatively quick and easy. While some savings accounts have a restriction on the number of withdrawals that can be made per month, all accounts offered through Raisin have no associated limits.
Finally, a savings account can be a great place to grow funds. While their interest rates are variable, they’re typically tied to rates set by the Federal Reserve. In some cases, banks offer rates that are many times the national average, such as all of the ones featured in the Raisin platform.
What types of savings accounts are available through Raisin?
Available savings products include high-yield savings accounts (HYSAs) and money market deposit accounts (MMDAs), which pay interest at rates well above the national average of that of a traditional savings account.
Raisin also allows customers to individually own or jointly own a savings product with another customer, such as a family member. A joint savings account can be a powerful tool for growing wealth, because you and a loved one can pool cash together to boost interest earnings. Moreover, a joint account and an individual savings account are covered by separate federal deposit insurance, even at the same bank.
How to Choose a Savings Account
The interest rate.
Usually expressed in terms of APY or annual percentage yield, a savings account’s interest rate tells you how much interest you earn on your savings. The higher the APY, the better performing the savings account is in terms of interest earnings. Unlike fixed-term savings products like CDs, savings accounts are likely to offer interest rates that are subject to fluctuation, often based on Federal Reserve benchmarks and prevailing market conditions.
Fees.
Nobody likes paying fees, even for a savings account with high interest. So choosing a savings account with few or no fees attached ensures nothing is eating away at your interest earnings. Some of the potential fees to watch out for include fees for going below a minimum deposit balance and fees for exceeding the limit on monthly withdrawals. Savings accounts through Raisin don’t charge either kind of fee.
Withdrawal limits.
It’s common to see banks put a limit of six withdrawals or outbound transfers per month on savings accounts. Exceeding that limit may incur penalties. This is not, however, an industry-wide practice. So, make sure to investigate what, if any, withdrawal limits are placed on a savings account you’re considering. Again, withdrawals from savings accounts through Raisin are not subject to any withdrawal limits.
Deposit insurance.
One of the most important benefits of a savings account is the protection it offers through the stability of the bank itself, plus the deposit insurance backing that institution. Savings accounts with FDIC member banks and with NCUA-insured credit unions offer coverage of up to $250,000 per depositor, per account. Not every bank or credit union is federally insured, though. You must confirm whether your savings are insured before opting for a savings account. Fortunately, Raisin partners only with federally-insured financial institutions on its platform.
The bank behind the account.
While it’s not a factor that likely affects the function of a savings account itself, the values and mission of the bank behind it may be of importance to you. For instance, some banks are dedicated to community development, others have minority ownership, and some support causes like youth education or housing for underserved communities. Many customers take these considerations into account when choosing an institution to bank with.
What do the best savings accounts have in common?
There are a few features that the best savings accounts have in common and that you can use when making your decision. These include:
Competitive interest rate
Low or no fees
Deposit insurance coverage
No withdrawal limits
No minimum balance requirement
Find and Open Online Savings Accounts, All Through the Convenience of Raisin
Raisin’s unique online marketplace lets you compare and access an exclusive selection of federally-insured savings accounts with competitive interest rates and flexible features. A Raisin account grants you access to all of this with a single one-time registration.
A savings account with high interest offered through Raisin is a great alternative to the standard savings account you may get through a local brick-and-mortar bank. That’s because in addition to offering a less-competitive interest rate, they may also put limits on the frequency of withdrawals. Raisin exclusively offers higher-earning savings accounts from its network of partner banks, with no withdrawal limits on any of them.
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.
Safety
Funds deposited into any of the savings products available through on 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.
Choice
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.
Convenience
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
All participating banks are members of the FDIC. Deposits in participating banks are insured by the FDIC up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured bank, for each deposit account ownership category.
Click to learn more about FDIC insuranceNational Credit Union Administration
All participating credit unions are insured by the NCUA through its Share Insurance Fund. Deposits in participating credit unions are insured by the NCUA up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured credit union, for each deposit account ownership category.
Click to learn more about NCUA insuranceCybersecurity is a top priority at Raisin
We invest in a variety of technologies to protect our customer’s data, privacy and transactions. These include multi-factor authentication, encryption, and web application firewall advanced internet protection technologies. We are a SOC 2 certified organization, which means we have met the requirements outlined by the American Institute of Certified Public Accountants (AICPA) to ensure that we have the controls in place to keep customers' data secure and private.
Click to learn more about SOC 2 certificationOpen an Account in 3-5 Minutes
Select
the right product for your savings goals.
Register
with an email address and password, then verify your identity and bank information.
Fund
the savings products you add to your new Raisin account.
How Raisin Compares
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Refer to the selection tool at the top of this page to access terms for the savings products listed.
FAQs
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.
Cloudflare™ is a registered trademark of Cloudflare, Inc.
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 support.us@raisin.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.
The Raisin name and logo are trademarks of Raisin GmbH. All other trademarks, logos, marks, and brand names are the property of their respective owners — used with permission.
© 2023 Raisin GmbH. All rights reserved.
*APY means Annual Percentage Yield. APY is accurate as of {todayDate}. Interest rate and APY may change after initial deposit. Minimum opening deposit is $1.00.
Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodian 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 Custodian 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 through Raisin.com. Central Bank of Kansas City, Member FDIC, d.b.a. Central Payments is the Service Bank. Lewis & Clark Bank is the Custodian Bank.