There is no such thing as a “Raisin account.” Raisin is not a bank. Your money initially goes into a bank account, so at no point is your money not FDIC insured. The biggest risk with Raisin is customer service, not money protection.
And it does work the same as almost any other fintech (Robinhood, for example). And even Clark’s three favorites when it comes to CDs (they are not banks themselves but use a similar structure as Raisin).
As a brand, Raisin certainly isn’t as established (although it did acquire a European bank that has been around for many decades). However, there is no risk of your money being outside of FDIC protection at any time.
Posting our full review for more information here.