Acorns Investing App Review: Smart Savings & Stocks and Investing Platform for your Money

Did you know Acorns has helped over $250,000,000 in investments by everyday Americans¹? The Acorns investing app changes how people save and invest money. It makes starting to build wealth easy with just spare change. You can open an account with $0, but you need $5 to start investing².

Acorns Investing App Review acorns application investing savings stock market

What makes Acorns special is its micro-investing feature. It lets users invest spare change from daily purchases. By linking your card to the app, Acorns rounds up each purchase to the nearest dollar. It then invests the difference into a mix of ETFs².

This easy way to invest is great for beginners. It lets them start in the stock market without the usual stress or complexity.

Acorns also has different account types for various financial goals and life stages. You can choose from taxable brokerage accounts (Acorns Invest), tax-advantaged retirement accounts like Roth, Traditional, and SEP IRAs (Acorns Later), and even accounts for kids (Acorns Early)². Plus, with the Acorns checking account and debit card, managing your spending and growing your investments is easy.

Key Takeaways

Acorns makes investing accessible to everyone with its micro-investing feature and low account minimums.
The app offers a diversified portfolio of ETFs, including socially responsible investment options.
Acorns provides a range of account types, from taxable brokerage accounts to retirement and kids' investment accounts.
With the Acorns checking account and debit card, you can seamlessly integrate your daily spending with your investment strategy.
Acorns has helped everyday Americans invest over $250 million, demonstrating its impact on financial wellness.

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What is Acorns and How Does it Work?

Acorns is a popular app for micro-investing and personal finance. It has attracted over 13,000,000 Americans, with more than $22,000,000,000 invested³. It's great for beginners who want to start investing with spare change.

Micro-Investing with Spare Change

Acorns' Round-Ups system invests your spare change from purchases. It rounds up to the nearest dollar⁴. This makes saving and investing easy for beginners.

Automated Investing for Beginners

Acorns offers robo-advisor services for beginners⁴. It invests in about 25 low-cost, diversified ETFs⁴. This takes the guesswork out of investing, making it easier for beginners.

Acorns Round-Ups Feature

The Acorns Round-Ups feature is a game-changer. It links your card to the app and rounds up purchases to invest the spare change. For example, a $3.50 coffee becomes a $4.00 investment. Over time, these small amounts can grow your wealth.

Acorns is easy to use and offers many features for beginners. It has a 4.7/5 rating on the App Store and a 4.6/5 on Google Play⁴. It also provides educational resources to help users learn about investing⁴.

With no minimum deposit required, Acorns is perfect for beginners⁴. It's a simple way to start investing with spare change. Whether for a rainy day or long-term, Acorns helps you reach your financial goals.

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Acorns Investment Portfolio Options

Acorns is a top micro-investing and spare change investing app. It works as a robo-advisor with many diversified portfolios for different goals and risk levels. It makes investment portfolio diversification easy for all, thanks to automated portfolio management⁵.

https://youtube.com/watch?v=fOwMXnFQPVg

Diversified ETF Portfolios

Signing up for Acorns starts with a quick survey about your financial goals and risk comfort. Based on your answers, Acorns picks a portfolio of about 25 low-cost, diversified ETFs⁵. These ETFs cover over 7,000 stocks and bonds from top providers like Vanguard and BlackRock. They have costs from 0.03% to 0.25%⁶.

By mixing different assets, Acorns aims to reduce risk and increase potential gains. This way, you get a well-rounded portfolio.

Socially Responsible Investing with Acorns Sustainable Portfolios

Acorns also has a sustainable portfolio for those who care about ESG. This portfolio includes ETFs graded for ESG, letting you invest with your values. Current users can switch to this option easily, making socially responsible investing simple on the mobile investing platform.

The round-up investing feature helps grow your portfolio with spare change from daily purchases⁵. Adding recurring investments and using the Gold plan's features can boost your investment portfolio diversification even more⁵⁶.

Seth Wunder, Acorns' Chief Investment Officer, said Starbucks (SBUX) stock was under $10 in 2008 and now over $100⁷. This shows the power of long-term investing in diverse portfolios.

Acorns is great for both new and seasoned investors. It offers easy ways to reach your financial goals through micro-investing and automated portfolio management.

Acorns Account Types

Acorns lets investors pick from four account types: Invest, Later (Retirement), Early (Investing for Kids), and Banking⁸. Starting to invest with Acorns is easy, with a minimum of just $5. This makes it simple for beginners to start a portfolio based on their goals and how much risk they're willing to take⁸⁹. Acorns helps users save and invest automatically, teaching them about money and how it grows over time.

Acorns Invest: Taxable Brokerage Account

Acorns Invest is a brokerage account for taxable investments. It lets users invest their spare change automatically. This makes saving and investing easy and regular. Acorns rounds up purchases to the nearest dollar, investing the extra when it hits $5⁹.

Acorns Later: Tax-Advantaged Retirement Accounts

Acorns Later is for saving for retirement. It offers traditional IRA, Roth IRA, SEP IRA, and 401(k) rollover options. This helps users plan for their future financially. Acorns provides various account types, including IRAs and custodial accounts for kids⁹.

Acorns Early: Investment Accounts for Kids

Acorns Early is for those in the most expensive plan. It's a UTMA/UGMA custodial account for kids. Parents can invest for their kids without dealing with legal issues. It teaches kids about money and investing early.

Acorns Fees and Pricing Plans

Acorns offers a low-cost investing solution for those looking to start their investment journey without high investment costs. With over 13,000,000 Americans investing more than $22,000,000,000 through the platform¹⁰, Acorns has become a popular choice for beginners and experienced investors alike.

The app offers three subscription plans tailored to different financial needs and goals. The Bronze plan, at just $3 per month, includes Round-Ups®, an expert-built diversified portfolio, a retirement account, and a checking account¹⁰. For those seeking additional features, the Silver plan, at $6 per month, adds a 1% IRA match on new contributions to your Acorns Later retirement account, an emergency fund, educational courses, videos, and live Q&As with investing experts¹⁰. The top-tier Gold plan, at $12 per month, further enhances the offerings with a 3% IRA match, investment accounts for your kids with a 1% match, a GoHenry debit card and learning app for kids, the ability to add individual stocks to your portfolio, a $10,000 life insurance policy, and a complimentary Will¹⁰.

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While the monthly fee structure may seem attractive, it's essential to consider how it can impact your overall returns, especially if you're investing smaller amounts. According to one reviewer, the Acorns app helped them save $5,000 over nine years, with their investment growing by more than 50% due to the strong stock market performance¹¹. However, the introduction of monthly fees in 2021, ranging from $3 to $12 depending on the plan, can eat into your returns if you're only investing a few dollars each month¹¹.

Despite the account management fee, Acorns remains a popular choice, with over 4.7 million subscribers¹². The app's flexibility allows users to start investing with as little as $5, making it accessible to beginners with limited funds¹². Additionally, Acorns charges no fees for withdrawals or deposits, providing users with the freedom to access their invested funds when needed¹².

I've been using Acorns for years, and while the monthly fees can add up, the convenience and ease of use make it worth it for me. Plus, the referral bonuses are generous, and several friends who signed up with my link saw their balances grow quickly¹¹.

To help you compare the different pricing plans, here's a detailed breakdown:

Plan	Monthly Fee	Features
Bronze	$3	Round-Ups®, diversified portfolio, retirement account, checking account
Silver	$6	Bronze features + 1% IRA match, emergency fund, educational resources, expert Q&As
Gold	$12	Silver features + 3% IRA match, kids' investment accounts with 1% match, individual stock investing, $10,000 life insurance, complimentary Will

It's worth noting that while Acorns offers SIPC protection up to $500,000 for investment accounts and FDIC insurance up to $250,000 for checking accounts¹⁰, it may not be a full-service investing solution for everyone. Some investors maintain relationships with traditional firms to access a wider range of investment options and personalized advice¹¹.

In summary, Acorns provides a straightforward and accessible way to start investing, with investment expense ratios that cater to various budgets and goals. By carefully considering your investment strategy and the potential impact of fees on your returns, you can make an informed decision on whether Acorns is the right choice for your financial journey.

Acorns Investing App Review acorns application investing savings stock market

The Acorns app is great for those new to investing. It's free to download on the App Store and Google Play. It has high ratings of 4.7 and 4.6, respectively¹³. With over 8 million members, it's a top pick for starting your investment journey easily.

Acorns stands out with its easy-to-use portfolio and Round-Ups® feature. This feature rounds up your purchases to the nearest dollar and invests the change when it hits $5⁵. It's a simple way for beginners to grow their money in the stock market without needing to know a lot about finance.

User Experience and Interface

The Acorns app is simple and easy to use, perfect for new investors. Its interface is clear and easy to navigate. You can set up your account, choose a portfolio, and start investing with just $5⁵.

Acorns has three plans: Bronze at $3/month, Silver at $6/month, and Gold at $12/month⁶⁵¹³. Each plan offers different features and benefits, like investment tools and retirement accounts.

Educational Resources and Financial Literacy Tools

Acorns offers a lot of educational resources for those wanting to learn more about the stock market. It has a "Money Basics" blog and the Grow + CNBC website. These resources help users make informed investment decisions and manage their finances better.

Acorns also gives personalized financial advice based on your goals and income⁵. It analyzes your data to suggest investment strategies and money management tips that fit your needs.

In summary, the Acorns app is great for beginners. It offers a smooth user experience, valuable educational resources, and tools to help you manage your money. With automated investing and customizable portfolios, Acorns makes starting your investment journey easy and fun.

Acorns Checking Account and Debit Card

Acorns offers more than just investment tools. It has a mobile banking solution with a checking account and debit card. These features help manage money and encourage smart spending habits. They work well together, making it easy to handle your finances in one place¹⁰.

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Features and Benefits of Acorns Checking

The Acorns checking account has many great features. It comes with a Mighty Oak debit card. This card offers a 3.00% APY on your balance, helping your money grow while staying easy to access¹⁰.

One big plus is no overdraft fees and no minimum balance needed¹⁴. This means you can manage your money without extra fees or balance worries. Plus, you get free access to Allpoint ATMs nationwide, so you can withdraw cash without extra charges¹⁴.

The Smart Deposit feature makes managing money even easier. It lets you set aside a part of your direct deposits for savings or investments¹⁵. This way, Acorns helps you save and invest while you handle everyday expenses.

FDIC Insurance and Security

Acorns keeps your money safe. Its checking accounts are FDIC-insured up to $250,000, giving you peace of mind¹⁰. This insurance protects your money, even if a bank fails.

Acorns works with nbkc bank, Member FDIC, for banking services and Mighty Oak Visa™ debit cards. This partnership adds to the trustworthiness of Acorns' banking options.

In short, the Acorns checking account and debit card offer a great mobile banking experience. They have competitive rates, no overdraft fees, and work well with Acorns' investment tools. This makes Acorns a solid choice for those wanting to manage their finances better and develop good spending habits¹⁴¹⁰¹⁵.

Comparing Acorns to Other Robo-Advisors and Investing Apps

Choosing a robo-advisor app or investment app can be tough. Acorns stands out with its focus on microinvesting and spare change. It's compared to Betterment, Robinhood, and Stash. Let's dive into how Acorns stacks up against these rivals.

Acorns vs. Betterment

Betterment is a well-known robo-advisor app. It offers automated investing services. Acorns has a 4.0 rating, while Betterment has a 4.5 rating¹⁶.

Acorns has three monthly plans costing $3, $6, and $12. Betterment charges 0.25% of assets annually or $4 monthly for its standard plan¹⁶. It also has a Premium plan for those with over $100,000, costing 0.40% annually¹⁶.

Both use ETFs and offer cryptocurrency investments¹⁶. Betterment has managed and automated crypto portfolios. Acorns lets users invest up to 5% in a Bitcoin ETF¹⁶. They both offer various account types, including IRAs and SEP IRAs¹⁶.

Acorns vs. Robinhood

Robinhood is famous for its commission-free trading. It doesn't charge monthly fees for basic accounts. But, it doesn't offer a robo-advisor service like Acorns.

Robinhood focuses on self-directed investing. Acorns, on the other hand, offers automated investing and fractional shares. Its spare change investing feature is unique, rounding up purchases for investment.

Acorns vs. Stash

Stash offers fractional shares and automated investing. Like Acorns, it's designed for beginners. But, Stash's pricing is different, starting at $1, $3, and $9 monthly.

Both Acorns and Stash provide educational tools. Acorns' spare change investing feature is a standout. It makes investing easy by rounding up purchases.

Platform	Fees	Account Types	Investment Options
Acorns	$3, $6, or $12 per month¹⁶	Individual, Traditional IRA, Roth IRA, SEP IRA, Custodial¹⁶	ETFs, Bitcoin ETF¹⁶
Betterment	0.25% or 0.40% annually, or $4 per month¹⁶	Individual, Joint, Traditional IRA, Roth IRA, SEP IRA, Checking¹⁶	ETFs, Cryptocurrency Portfolios¹⁶
Robinhood	No monthly fees for basic account	Individual Taxable	Stocks, Options, Cryptocurrencies
Stash	$1, $3, or $9 per month	Individual Taxable, Traditional IRA, Roth IRA, Custodial	Stocks, ETFs

The choice between Acorns and other apps depends on your needs and goals. Acorns is great for beginners. It's easy to use, offers automated investing, and teaches you about investing with spare change.

Acorns Pros and Cons

Acorns is a popular app for saving and investing money. It rounds up your purchases and invests the spare change. This makes it easy for beginners to start investing without needing a lot of money¹⁷. The app also offers different investment options, like ETFs and socially responsible funds, managed by big names like BlackRock and Vanguard¹⁵.

Advantages of Using Acorns

Acorns has a great IRA match program. Silver and Gold members get a 1% and 3% match on their IRA contributions¹⁵. This helps users save for retirement and enjoy tax benefits. Plus, you can earn cash back at over 450 retailers while shopping.

Acorns is also easy to use. It lets beginners invest right away, with no minimum account balance and the option to make regular contributions¹⁷. The Round-Ups feature invests spare change from every purchase once it hits $5. It's a smart way to save without thinking about it¹⁵.

Drawbacks and Limitations

Despite its benefits, Acorns has some downsides. It doesn't offer tax-loss harvesting, which many competitors do¹⁷. This means users might miss out on tax savings.

Another issue is the pricing. While the monthly fees are low, they can be high for those with small accounts¹⁵. For example, Betterment's basic plan costs 0.25% annually, which might be cheaper than Acorns' $36 annual cost for a $100 investment¹⁷. It's important to compare costs to find the best value.

Lastly, Acorns doesn't offer human financial advisors, which might be a drawback for some¹⁷. While it provides educational resources and a user-friendly platform, some investors might prefer personal advice.

Acorns Pros	Acorns Cons
IRA match for Silver and Gold members (1% and 3% respectively)¹⁵	No tax strategy, such as tax-loss harvesting¹⁷
Round-Ups feature automatically invests spare change¹⁵	High plan fees for low account balances¹⁷
Cash back program at over 450 retailers	Fee to access the checking account¹⁷
No account minimum and easy to start investing¹⁷	Lack of access to human financial advisors¹⁷
User-friendly interface and recurring contributions¹⁷	Higher-priced plans don't add significant value

Who Should Use Acorns?

Acorns is perfect for those who want to invest easily and automatically. It's great for beginners and young adults. They can start building wealth early with Acorns' simple interface and low investment needs.

Ideal User Profile for Acorns

Acorns is for people who like easy investing and can invest spare change. It's for those who don't want to manage their investments themselves. The platform offers plans from $3 to $12 a month, fitting different financial goals¹⁸¹⁹.

It's also good for those who care about investing responsibly. Acorns has Sustainable Portfolios that focus on companies with good ESG practices. Plus, it offers various account types, including IRAs, for different investment needs¹⁹.

When to Consider Other Investing Options

Acorns is great for many, but not all. If you have a lot to invest or need special features, other options might be better. For example, if you need tax-loss harvesting, you might look elsewhere.

Also, Acorns' fees might not be the best for small investments. For a $100 account, Acorns costs $36 a year, while Betterment costs just $0.25¹⁹.

Investing Platform	Annual Cost for $100 Investment
Acorns Bronze	$36
Betterment Digital	$0.25

Choosing Acorns or another platform depends on your financial goals and preferences. Look at fees, minimums, and features to find the best fit for your wealth-building journey.

Conclusion

Acorns is a smart investing app for new investors. It makes starting to invest easy with a simple platform. You can even invest your spare change from daily purchases²⁰.

The app uses a robo-advisor to help you invest wisely. It picks a mix of ETFs from six asset classes. This helps match your risk level²¹.

Acorns also has tax-advantaged IRAs for retirement and a checking account with a debit card. It even has investment accounts for kids. This makes it a full financial solution for users²⁰.

Acorns charges a monthly fee, from $1 to $5, based on your plan. But, the fee can get lower as your account grows²¹. Still, smaller balances might feel the fee more²⁰.

For those new to investing, Acorns is a great starting point. It offers fractional shares and a wide range of investments. This helps you build a portfolio that fits your risk and goals. While it lacks some advanced features, its simplicity is a big plus for beginners.

FAQ

What is Acorns and how does it work?

Acorns is a micro-investing app. It lets users invest spare change from daily purchases into ETFs. It rounds up each transaction to the nearest dollar and invests the difference. This makes it easy for beginners to start investing with small amounts.

What types of investment accounts does Acorns offer?

Acorns offers three main account types. There's Acorns Invest, a taxable brokerage account. Then there's Acorns Later, for tax-advantaged retirement accounts like IRAs and 401(k) rollovers. Lastly, there's Acorns Early, for custodial investment accounts for children.

How much does Acorns cost?

Acorns has three pricing plans. The Acorns Personal costs $3/month. The Acorns Personal Plus costs $6/month. The Acorns Premium costs $12/month. Each plan offers different features and account types, but all include the core investing and round-up features.

What kind of investment portfolios does Acorns offer?

Acorns offers diversified portfolios of low-cost ETFs. These are chosen based on the user's risk tolerance and financial goals. It also has Acorns Sustainable Portfolios, focusing on ESG factors.

Does Acorns offer a checking account and debit card?

Yes, Acorns offers a high-yield checking account and a Visa debit card. These are available in the Personal and Premium plans. The checking account has no minimum balance, no overdraft fees, and access to over 55,000 fee-free ATMs nationwide.

How does Acorns compare to other investing apps like Robinhood and Betterment?

Acorns is great for beginners who want a hands-off investing experience. Robinhood focuses on self-directed trading, and Betterment offers advanced tax strategies and human advisors. But Acorns is best for those just starting out.

Is Acorns safe and secure?

Yes, Acorns is very secure. It uses industry-standard encryption and authentication to protect user data. It's also SIPC insured, protecting investments up to $500,000 if Acorns goes out of business.

Can I withdraw my money from Acorns at any time?

Yes, you can withdraw your money from Acorns anytime without penalties or fees. But remember, investing is a long-term strategy. Withdrawing too often can hurt your returns over time.

Is Acorns a good choice for beginner investors?

Yes, Acorns is perfect for beginner investors. It offers an easy and automated way to start investing with small amounts. Its round-up feature and diversified portfolios make it simple to build wealth over time, even with little money to start.

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