If Raisin were to fail, this would not impact the existence of pass-through FDIC or NCUA insurance coverage that protects our customers' investments from the failure of partner banks and credit unions on the Raisin platform. This is because funds deposited through Raisin are exclusively held in custodial accounts by federally insured financial institutions.
An FDIC-supervised custodial bank opens the “For Benefit Of” account for each customer and agrees directly with Raisin’s customers to act as the custodian of their funds. This custodial bank is authorized by Raisin customers, as their agent, to hold their deposits at FDIC-insured banks and NCUA-insured credit unions on their behalf in a custodial capacity. Customer funds are never co-mingled with Raisin funds.
This structure and process ensures that in the unforeseen event of Raisin’s failure, the FDIC and NCUA insurance protections continue and customers' funds stay safe and available to withdraw after following due process. For more information on your deposit insurance, please visit https://www.fdic.gov/resources/deposit-insurance/ for the FDIC and https://ncua.gov/support-services/share-insurance-fund for the NCUA.