When you’re trying to save money for a rainy day, a specific financial goal, or any other reason, you want to make sure it grows quickly. The problem is that finding the best possible place to store your cash isn’t always easy. There are many more banks than anyone could research. Additionally, not all institutions are open to everyone, which may prevent you from getting the best rates. Fortunately, Raisin (formerly SaveBetter) can make that process easier while increasing your access to banks and credit unions with great rates.
What is Raisin (SaveBetter)?
Raisin It is not a bank. Rather, is a marketplace that allows you to explore a variety of banks and credit unions through a single platform. Additionally, it allows you to coordinate your savings activity across multiple institutions without having to share your personal information with each of them. Instead, your Raisin account gives you access to listed banks and credit unions, allowing you to use a variety of savings products much more conveniently.
All banks available through Raisin are FDIC member institutions, while all credit unions are insured by the NCUA. This gives you some protection and guarantees peace of mind.
It is also essential to note that there is no fee to register with Raisin. So you can get started without having to pay to set up your Raisin account or access its various partners.
Five Best Ways to Use Raisin (SaveBetter) to Make the Most of Your Savings
1. Find the best rates
As a saver, the main benefit you will get from using Raisin is access to savings products with higher interest rates. Raisin features a variety of savings accounts, money market accounts, and certificates of deposit (CDs), and negotiates with partner institutions to get the highest possible rates for Raisin users.
The reason why rates are often higher through Raisin than through other sources (sometimes even higher than those obtained directly from the institution) is based on the partnership agreement. Because Raisin provides institutions with direct access to savers, it allows banks and credit unions to take in more deposits without paying for advertising. Basically, since the institution spends less, it is willing to offer the best possible rate.
If you want to maximize your earnings while using Raisin, you’ll want to examine all of the latest fee information from the various institutions. Additionally, you can review the terms related to the offers, allowing you to see how balances and interest are calculated, when interest is credited, and more.
2. Maximize FDIC and NCUA Insurance Coverage
The insurance coverage of the FDIC and the NCUA It provides you with fundamental protection. If the bank holding your funds goes bankrupt, the insurance FDIC and the NCUA guarantees that you will get your money back, up to $250,000 by institution.
For savers with more than $250,000, the insurance limit can be problematic. For example, if you have $300,000 in savings at an institution and that bank or credit union goes bankrupt, insurance would only provide you $250,000. That means you would lose $50,000.
But by using Raisin, you can easily spread your savings across two or more institutions. For example, you could put $150,000 in bank A and $150,000 in bank B. Since they are different institutions, you get up to $250,000 for each. So, in an unlikely scenario where both banks went bankrupt, you would get your entire $300,000 back.
3. Access a variety of savings products
With Raisin, you’re not limited to just savings accounts. You can also explore money market accounts and CDs instead. Within the CD category, you’ll also find traditional and penalty-free CDs, so you can decide if you need the flexibility that free early withdrawals provide or if blocking is the best option for you. This allows you to choose the type of account that best suits your needs and compare all options from a single interface.
4. Portfolio rebalancing
At Raisin, you can manage your savings like a stock portfolio. Basically, you can see your balances and rates at the institutions you are using and compare what is available through the various institutions (including those you are not currently using). You can then transfer funds between accounts as needed, often with just a few clicks or taps. Thanks to this, you can ensure that your cash always gets the best possible rates much more conveniently than if you were using multiple banks or credit unions on your own.
5. Start with just $1
While making the most of your savings is probably your top priority, the idea of using a new platform can be intimidating. Fortunately, you can try Raisin without having to make a big commitment. You can start by funding your account with as little as $1, allowing you to slowly familiarize yourself with Raisin and its various partners. Then, once you feel confident, you can transfer more to your Raisin account, allowing you to maximize your savings on your terms.
If you want to start, open your Raisin account today!