If Raisin were to fail, your deposits would not be lost. This is because funds deposited through Raisin are exclusively held in custodial accounts at federally regulated 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 federally regulated banks and credit unions on their behalf in a custodial capacity. Customer funds are never co-mingled with Raisin funds.