Our Acorns review really opened our eyes to a new world of investing opportunities.
The Acorns app is one of the most popular investment account apps, with over 5 million users, and we can certainly see why!
What sets Acorns apart from other investment apps is its focus on helping people save money and begin investing. Acorns rounds up your purchases to the nearest dollar and invests the spare change.
These smaller investments add up over time. But it’s important to remember that investing comes with risk, and you could lose money.
Acorns At A Glance
Here are some quick details on Acorns you should know if you want to sign up with this platform:
Minimum to open an account: $0
Bonus Sign Up: $10
Investment Account minimum: $5
- Personal: $3 a month; includes checking, investment, and retirement accounts
- Family: $5 a month; includes the Personal Accounts plus adds child investment accounts
- Individual investment accounts
- Retirement accounts (Traditional IRAs, Roth, and SEP IRAs)
- Children’s custodial accounts (UTMA/UGMA are available with the Family account)
Automatic investment: You can invest your spare change automatically. For example, if you spend $3.50 on coffee, Acorns will round up that to the nearest dollar ($4) and invest the extra $0.50.
Acorns fees: Transfer fee of $50 per exchange-traded funds (ETFs); no fees charged for buying, selling, or cashing out the account; fee structure is per account and a monthly management fee
Is a checking account offered?: Yes, with no minimum balance or overdraft fees; can be used at over 55,000 fee-free ATMs; FDIC insured up to $250,000
Offers human advisor: No, Acorns doesn’t have human advisors; Betterment is a similar Robo-advisor that does, but they don’t have round-up investments like Acorns does
The automated round-ups are one of the Acorns app’s most well-known features.
Here’s how it works:
- Set up your account and get a linked credit or debit card.
- Acorns rounds up each everyday purchase to the nearest $1.
- Acorns invests that spare change in ETFs automatically to build up your portfolio.
Over 350 businesses have teamed up with Acorns to give you money back when purchasing at one of its affiliated partners using your linked account.
Download the Acorns Google Chrome extension to access 12,000 + brand partners.
Just use credit and debit cards linked to your active Acorns account when you purchase. Acorns will deposit the rewards you’ve earned into your account within 60 – 120 days.
Acorns Job Finder
With this feature, you can get matched with jobs based on your skills and preferences. You get access to training materials, plus set up job alerts for new opportunities.
ZipRecruiter powers the Acorns Job Finder, so you know that consistent job postings and opportunities will be available to you.
The Acorns app is a tool anyone can use to save money and invest.
Its simple interface makes it easy to regularly set aside small amounts of money. The app also provides various options for investing your savings in tailoring your investments to your specific goals.
And if you’re ever in need of a little extra cash, you can withdraw funds from your account without penalty.
Overall, people who use the Acorns app are typically young adults who are new to investing.
The app is designed to be simple and easy to use, focusing on getting started with small amounts of money, which is perfect for new investors looking for ease of access.
But experienced investors and others can also benefit from Acorns. If you’re someone who struggles to save money or invest on your own, Acorns can help you get started.
Acorns is best for:
- New investors who want to invest but don’t know where to begin investing in the stock market.
- Experienced investors looking to become hands-off investors in the stock market
- People who want to invest automatically: Acorns will round up your everyday purchases and invest the spare change for you
- People who want to earn cash back on their everyday purchases: get money back from 350+ brands when you shop with a linked payment method with Acorns Earn
- People who want to find a new job: Acorns Job Finder can help you find jobs that match your skills and preferences
Acorns Sign Up Bonus
When you sign up for Acorns, you’ll get a $10 bonus when you deposit $5 into your account.
That’s free money just for signing up, and you can’t pass up extra investing money!
To get started, create your account and then link a funding source, like bank accounts.
Once you’ve linked your account, you’ll need to deposit at least $5 into your Acorns account to get started.
Acorns offers a selection of pre-made portfolios instead of individual company stocks to help you reach your financial goals.
You can choose from the following five portfolios to help you make the best investments:
- Aggressive – This portfolio has a higher percentage of stocks and is meant for investors willing to take on more risk to achieve greater returns.
- Moderately Aggressive – This portfolio has a mix of stocks and bonds and is meant for investors looking for some growth potential but also want to limit their risk.
- Moderate – This portfolio has a higher percentage of bonds and is meant for investors who want to protect their capital and earn a steady return.
- Conservative – This portfolio has an even higher percentage of bonds and is meant for investors who want to minimize their risk.
- Moderately Conservative – This portfolio is mainly made of cash and is meant for investors who want to protect their capital and earn a steady return with minimal risk.
You can also find socially responsible portfolios in Acorns for other options you may not get on other platforms- ESG ETFs are available at no extra cost
Once you’ve selected your portfolio, Acorns will automatically invest your money for you. You can also set up recurring investments to consistently save and invest.
There are no monthly fees or minimum balance requirements, so you can start small and grow your account at your own pace.
However, you will need to deposit at least $5 into your account to get started and earn the free $10 sign-up bonus.
Acorns doesn’t charge any commission fees, so you can invest your money without worrying about hidden fees eating into your returns.
But Acorns does charge other fees that you should be familiar with:
Cash Management Account: Management Fee
Acorns has a simple fee structure that isn’t too expensive compared to other Robo-advisors. Acorns charges a management fee for the 2 cash management accounts it offers:
- Personal Accounts – $3 monthly fee
- Family Accounts – $5 monthly fee
The monthly management fee for an Acorns Personal Account translates to an annual fee of $36 per year for Personal accounts and $60 for Family accounts.
So to break that down, the expense ratios for an account with a $1,000 balance would be about 3.6% and 6%, which is still less than you would pay for commission-based platforms.
Acorns’ cost is higher than some Robo-advisors, but account fees are a part of the investing game. You have to decide if the price difference in fees is worth the added features Acorns offers.
The fee to transfer investments from Acorns to another broker is expensive. To move funds, you’ll have to pay $50 per ETF.
Acorns isn’t the only company to charge this fee, but it is among the most expensive ones. For example, if you have six ETFs, you’ll pay $300 in costs to transfer them.
If you sell the investments, there is no charge, and you just transfer the cash to another account.
If you should decide that you don’t want to have your investment account with Acorns anymore, there is no closing fee to close your account.
Acorns makes money management effortless with its simple and user-friendly interface. They also offer an online checking account along with a debit card.
One of the most popular features of Acorns is its taxable brokerage account. Investors can invest in portfolios of stocks and EFTs.
There are five different portfolios to choose from, and each one of the investing strategies has a different level of risk tolerance.
The portfolios are Conservative Portfolio, Moderately Conservative Portfolio, Moderate Portfolio, Moderately Aggressive Portfolio, and Aggressive Portfolio.
Your portfolio will depend on your investment goals and how much risk you’re willing to take.
Once you’ve selected a portfolio, Acorns will automatically invest your money in a diversified mix of ETFs. The app will also rebalance your portfolio to align your portfolio allocation with your goals and risk tolerance.
One of the features that make Acorns a great investment app is that it automatically rebalances your portfolio as needed to keep it aligned with your investment goals.
This means that they will spread your money out across different investments, which can help reduce risk.
Acorns Spend Checking Account
Acorns will add value to your personal finance strategy as you can easily get your checking account set up and linked with an investment account and retirement account.
The account has no minimum balance requirement, pays no interest, and is FDIC insured for up to $250,000.
However, it does offer mobile check deposit and fee-free access to over 55,000 ATMs worldwide. The account also offers debit cards that give you cash back at certain retailers.
You can also get round-ups with an Acorns Spend Account, which are invested in your portfolio automatically.
Saving for your kids can be a daunting task, but Acorns makes it easy with Acorns Early.
The Early account is a custodial account that a parent or guardian can open and use for any savings, not just college.
The account has no fees and no minimum balance requirements, so you can invest when you can and focus on tucking away some money for your kids as they grow up.
The Acorns Early account isn’t the same as other college savings accounts. For example, a 529 account is a savings account with tax advantages designed to encourage parents to save money for education costs.
Our Savvy tip: Using the round-up feature with your Early account is the best way to save money for your kid’s future automatically. This way, you don’t have to think about putting money in and investing it- Acorns does it for you.
An Acorns feature for its customers that puts it right up there with some of the best Robo-advisors is UTMA/UGMA.
The Uniform Transfers to Minors Act (UTMA) and the Uniform Gifts to Minors Act (UGMA) are two ways that adults can transfer money or assets to minors held in a custodial account for the benefit of the minor.
A custodian who has a legal duty to use the assets for the benefit of the minor manages the account. Once the minor reaches the age of majority, they will have complete control over the account and can use the assets for any purpose.
Acorns Later is an IRA account that allows you to save for retirement with tax-deferred or tax-free growth. It’s an IRA that offers a variety of portfolio options to choose from, including traditional, Roth, and SEP.
An IRA is used to save for retirement with tax-deferred or after-tax (Roth) contributions. They recommend the IRA type that is best for you. Once you sign up, they set it up with recurring contributions from your linked bank account.
Acorns Found Money
Found Money is what Acorns calls their program that allows you to earn cash back from over 350 brands when you shop online or in-store. Brands include Amazon, Walmart, and Target.
Acorns will automatically invest a percentage of the total purchase price into your Acorns account when you shop at a participating brand.
Acorns offers a variety of retirement accounts, including traditional IRAs, Roth IRAs, and SEP IRAs. They also offer a 401k account for businesses. You can choose the retirement account that best suits your needs.
Roth IRA, Traditional IRA, SEP IRA
If you’re looking for a retirement account that offers tax-deferred or tax-free growth, Acorns Later might be the right option. Acorns Later is an IRA account that allows you to save for retirement with tax-deferred or tax-free growth.
An IRA (individual retirement account) allows you to save for retirement with tax-deferred or after-tax (Roth) contributions. They recommend the IRA type that is best for you. Once you sign up, they set it up with recurring contributions from your linked bank account.
Pros & Cons Of Acorns
- Invest spare change in your Acorns portfolio
- Get started with as little as $5 to get a $10 bonus sign-up
- Manage your own investments or let Acorns handle it (Robo-advisors for the win!)
- Simple checking account and other investment accounts with average management fees
- Grow your money faster
- Easy access to your account
- Offers sustainable portfolios
- Doesn’t offer a human investment advisor
- Fees are a bit high for people with small account balances
- Doesn’t offer tax-loss harvesting strategies
- Can’t invest in individual company stocks
Although Acorns is one of the best Robo advisors, a few other apps offer similar services.
Here are a few places you may want to set up an investing account with:
When it comes to investing, there are many options out there. Two popular choices are Acorns and Robinhood. Both offer unique benefits, so it’s important to understand the differences before making a decision
On a simplified trading platform, Robinhood offers commission-free stock, ETF, options trades, and free cryptocurrency trading.
Plus you can get free stocks for signing up!
One of the best things about the Robo-advisor, Robinhood, is that there is no account minimum, so you can start investing with as little money as you want. Another great thing about Robinhood is that it offers commission-free trades on all stocks and ETFs.
Robinhood also offers a variety of research tools to help you make informed investment decisions with Robinhood.
Betterment is one of the best-known Robo-advisors that helps people save for their future and reach their financial goals.
The company offers ETFs, a type of mutual fund that trades on an exchange like a stock, and various services, including retirement planning, investment advice, and tax-loss harvesting.
One of the best things about Betterment is that it offers human advisors who can provide you with personalized investment advice.
Another great thing about Betterment is that it offers a variety of investment portfolios to choose from, so you can find one that fits your needs.
Stash is similar to Acorns in a lot of ways, plus is also another low-cost investment platform that has an easy-to-use app for investing in stocks, ETFs, and more.
It’s also a top pick if you want to invest with fractional shares and get an easy portfolio started with their Portfolio Builder.
Check out the Stash Disclaimer below*.
M1 Finance is an online broker that offers a unique hybrid investing experience.
With M1 Finance, you can choose to invest in pre-built portfolios called Expert Pies or hand-pick your own individual stocks and ETFs.
It is an excellent choice for beginner investors who want to start investing without paying any fees. They also offer M1 Plus, a paid subscription that gives you access to premium features, such as tax-loss harvesting and advanced portfolio analysis.
Is there a limit to how much you can invest in Acorns?
No, there is no limit to how much you can invest in Acorns. You can use the app to grow your money over time without worrying about any limits.
Does Acorns help you build an emergency fund?
Acorns helps you grow your money over time, but it does not specifically help you build an emergency fund. However, you can use the app to set aside money each month, giving you a cushion in case of unexpected expenses.
Whether you’re just starting on your financial journey or on your way to reaching your goals, the Acorns app can help you save and invest for the future. Many Robo-advisors can help you meet your goals, but Acorns does it in some innovative ways!
It’s perfect for beginners who want to start investing without worrying about making mistakes. And, its cashback rewards program makes it easy to earn money while you save.