Acorns: Latest App Reviews And More

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Piggy banks are much lonelier these days.

Along with COVID-19 causing a coin shortage, more and more people are shopping online and using plastic to pay for things, enabling them to pay the exact amount. No longer are people receiving spare change that they may typically toss in the piggy bank.

Mobile finance apps have created a new way to make spare change by “rounding up” your spending, then using it to save and invest automatically. No coin jars, piggy banks or change purses – these apps are doing it all online.

And one of the apps that’s getting it right is Acorns.

What Is The Acorns App?

Acorns is an investment app that specializes in micro- and robo-investing. Founded on the idea that “from acorns, mighty oaks do grow,” the app rounds up your spare change and automatically invests it into the stock market. It can also be used as an all-in-one financial app, with additional products including retirement accounts, checking accounts and investment accounts for kids.

How Does Acorns Work?

Signing up for acorns is simple. You create an account using your email and a password, then link your bank account, so the app can make the necessary roundups and withdrawals.

You’ll also need to choose a subscription tier based on your financial goals. You can choose from a few options: Personal or Family.

With any of these tiers, there is no account minimum to sign up. However, you must have a minimum of $5 to begin investing.

Here’s what each subscription offers and how much it costs. We’ll dive into each Acorns product in the next section.

Depending on what products you choose to use on the app, Acorns will automatically save and invest money for you through your linked accounts.

Acorns Products

Acorns has several different products to help you meet the different goals you may have now and for the future. Read on to learn more about each product and determine which ones can help you in your financial planning.

Acorns Invest

The most popular option – and offered for free in any subscription tier, Acorns Invest is the heart of the Acorns app.

Based on your financial situation and goals, Acorns will recommend one of five diversified portfolios created with help from Nobel Prize-winning economist, Dr. Harry Markowitz.

When it comes to investing your money, there are a few ways to do that in Acorns:

Round-Ups

Every time you make a purchase, Acorns will round the total up to the next dollar and invest the difference.

For example, if you purchase something for $4.10, Acorns will round that to $5.00 and invest that extra $0.90.

Recurring And One-Time Deposits

You can set up automatic, recurring deposits either daily, weekly or monthly. You can also make one-time transfers to Acorns at any time. Both of these actions require a minimum of $5.

Acorns Earn

Also known as their “found money” feature, Acorns Earn allows you to invest even more money when you shop at select retailers. Whenever you use your Acorns-linked cards at these retailers, they invest a percentage of your purchase into your Acorns investment account.

For example, if you spend $100 at a select retailer that will invest 5% of your purchase back into your investment account, you’ll receive an extra $5 to invest.

Get $5 when you sign up for Acorns today!

Acorns Later

Acorns Later allows you to save money for retirement, automatically, through the Acorns app. Based on several factors, like your lifestyle and financial goals, Acorns will select one of their Individual Retirement Accounts (IRAs) that best fits your needs. The types of IRAs included in the app are Roth IRA, Traditional IRA or SEP IRA.

You can contribute to your account in two ways through Acorns: by making a one-time contribution at any time or setting up recurring daily, weekly or monthly contributions.

Acorns Later is available in the Personal or Family subscription, starting at $3 per month. Along with the monthly fee, you only need $5 to start investing in your retirement.

Acorns Checking

Acorns Checking is a personal checking account through Acorns. It functions just like any other savings account, with digital banking and direct deposits. And since it is a part of Acorns, your round-ups are taken from the account instantly – instead of once they accumulate to $5.

Sign up for Acorns Checking, included in the Personal or Family subscription, and you’ll also get a tungsten metal debit card with access to thousands of fee-free ATMs across the country.

Acorns Early

With Acorns Early, you can set your child up for success before they even understand the concept of money. Available in the Family subscription only, Acorns Early allows you to open investment accounts for your children that are easily transferred over to them once they’re adults. As UTMA/UGMA accounts, their use is not limited to educational purposes only. You can set up recurring payments to the accounts for as little as $5.

Acorns Reviews

Many financial professionals have tried out the Acorns app. Here is a roundup of some of their opinions on the investment app.

Investor Junkie

When looking at microsavings services, Investor Junkie found Acorns to be one of the best out there. The reviewer liked that there was no minimum deposit to start using the app and found that the investment amounts were so small, it was barely noticed when they were taking from the checking account. However, the reviewer found that users who only invest a small amount of money could lose their return on investment to app fees.

Business Insider

Business Insider noted the app’s ease of use and called it an “ideal choice” for those just starting in investing, who may be overwhelmed. Among the ways Acorns makes investing easy, Business Insider highlighted the app’s features that help users invest without having to remember to set money aside each month. Business Insider also mentioned that Acorns limited portfolio options can remove the overwhelm that’s often caused by too many investment options.

While the review was mostly positive, it did mention that Acorns was pricier than other investing apps. However, the reviewer found the ease of use with Acorns to be worth much more.

Nerd Wallet

When it came to the advantages of using Acorns, Nerd Wallet lauded the app’s automated approach to saving, the no-minimum requirement for opening an account and the custodial accounts users can build for their children.

Like all other reviews, Acorns’ management and account fees were areas the reviewer thought the app fell short.

How Acorns Stacks Up Against The Competition

Acorns isn’t the only investment app out there. Here’s how it stacks up against its competitors.

Robinhood

Unlike Acorns and other similar apps, Robinhood focuses solely on investing and trading – all commission-free. There are no retirement accounts or checking accounts. What stands out about this app is that you can trade cryptocurrency. However, the app may not be the best for beginning investors or ones who wish to take a hands-off approach.

Stash

Beginner investors looking for more guidance on how to invest can find in with Stash. Like Acorns, the app provides options based on questions that determine risk. However, it is up to the user to build their portfolio (with guidance), requiring a bit more of a hands-on approach than Acorns. The app has a tool called Stash Coach, which helps you learn more about the app and investing through personalized challenges. The app also has three, tiered subscriptions starting at $1 per month for the Beginner subscription. These tiers feature similar products, including a bank account (offered in the Growth subscription at $3 per month) and investing accounts for up to two children (offered in the Stash+ subscription for $9 per month).

Betterment

Like Acorns, Betterment works like an all-in-one financial app, offering cash management accounts, guided investing and retirement planning options. With goal-setting in mind, the app even allows you to bucket your savings into different goals. The app has two plans with management fees. Betterment Digital features all of the tools for a 0.25% annual fee and a $0 minimum balance. Betterment Premium offers unlimited access to Betterment’s Certified Financial Planners (CFPs) in addition to all the perks of digital for a 0.40% annual fee and a $100,000 minimum balance.

Both fees are based on your account balance, meaning you’ll be charged either 0.25% or 0.40% of your account balance annually.

Why We Like The Acorns Investing App

Acorns is a smart app for those who wish to do hands-off investing and who have a hard time “finding” the money to invest or “pay themselves first.” With several products, Acorns has made it easy to set up a one-stop financial shop with built-in investment, retirement and checking accounts and several ways to help you automatically build your portfolio, including round-ups, recurring deposits and even some help from select businesses.