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Acorns investing app is basically a micro-savings app. It works by rounding up your purchases to an even number and investing the difference for you. As you get your checking account and credit card linked, Acorns reads your card spending habits and rounds all your transaction up to the nearest whole number. It then pulls the difference from your checking account and invests it in an Acorns account that you set up.
Acorns intend to simplify and demystify investing process through a revolutionary mobile app. Easy to use and user friendly features. Acorns recently unveiled a web-based version for desktop and portable users, as well.
This awesome app also chooses an investment opportunity that suits your personal trading style. It is quite handy when you want to get your hands heavy with investing. Acorn is not free as they charge you a flat fee of $1 per month for accounts of less than $5,000. And 0.25% fee annually for accounts larger than $5,000.
Acorn is built with an automated savings tool. This tool pushes your purchases on linked cards into a computer-managed investment portfolio. This automated architecture is a useful tool that helps you make better savings.
How Does Acorns Investing App Work?
Like a said earlier Acorns is an app that “rounds up” your spending to the nearest dollar and invests that difference. You link a credit card and checking account, then Acorns does the rest for you. It basically invests your spare cash, making it awesome.
Acorns offers three levels of membership:
- Lite: $1 a month. Includes a taxable investment account.
- Personal: $3 a month. Adds on a personal retirement account and a checking account.
- Family: $5 a month. Includes everything in the lower tiers, plus Acorns Early, which lets you open investment accounts especially for children.
For existing Acorns users: If you joined before May 20, 2020, you may still be on their previous pricing structure. The main difference is that there is no longer a $2-a-month tier offering just a taxable investment account and an IRA. If that’s the tier you already are on, you can stay there. Or you could move to the $3-a-month tier and get a checking account as well.
Benefits and essential features of using Acorn app
Below are some benefits and essential features of using the Acorn app:
Found money refers to one of Acorns’ coolest and most potentially effective features. Every time you use your Acorns-linked debit or credit card at a select retailer like Airbnb,Walmart etc. That retailer will actually invest a bit into your Acorns investing account. These are businesses you’re very likely already making expenditure on, at one point or another.
Found Money participants or retailers will be listed below, and the amount they’ll contribute( this amount might change or vary in the future).
|Airbnb||1.8% of your service fee|
|Walmart||$5 with a new subscription|
|Boxed||4% of your purchase|
|Blue Apron||$30 when you sign up|
|Billshark||$10 when you sign up|
|Lyft||$15 when you sign up as a driver|
|Dollar Shave Club||10% of your purchase|
|Earnest||$100 when you refinance your student loan|
|Expedia||4% of your purchase|
|Groupon||5% of your purchase|
|Liberty Mutual Insurance||$5 per auto or home insurance quote|
|LifeLock||$25 with a new purchase|
|DirecTV||$25 when you sign up|
|Macy’s||5% of your purchase|
|MeUndies||20% of your first purchase|
|New Balance||5% of your purchase|
|Warby Parker||1% of your purchase|
|Sephora||$3% of your purchase|
|Stich Fix||$10 with a new purchase|
|Barnes & Noble||2% of your purchase|
|Nike||5% of your purchase|
Found Money offers vary per retailer, the Acorns phone app will give you all the details on the offers currently available.
Addition of consistent small money monthly automatically
Acorn is very good at investing spare money automatically, this makes investing easy without hassle. Not just spare money, you can also invest large amount of money adn its all automated.
You can set up an account to invest another small but consistent amount of money each month automatically. Combine automatic deposits with round-up investments, and you’ll have a hand full of returns. Note: You are been charged a monthly fee to use Acorn. So be sure your fee is way smaller than the amount invested on a monthly basis, for a good return on investment.
fantastic investment plan for students
The earlier you start your investment plans the better. The best time to start investing is now, don’t wait or procrastinate, this investment app is ideal for students too so you have no excuse. The earlier you can start investing, the more time compound interest has to work in your favor.
Acorns investment app has a fantastic offer for students. Those with a valid “.edu” address can get up to four years of use without fees. For students with high debt burdens and/or low incomes during school, Acorns can be a fantastic medium to start building wealth for their long-term future.
Boost Your Round-Ups
With the way Acorn system is built, you have the opportunity to take advantage of your “spare change”. Say for instance you spend $9.45 at your favorite lunch spot. Using Acorns, you can round up to $10 and deposit that extra 55 cents in your Acorns investing account.
You can elect to boost your “spare change” amount by as much as ten times. So instead of investing 55 cents, you can invest as much as $5.50 for that single transaction.
Acorns at a glance
|Account minimum||$0 to open account; $5 investing start point|
|Account management fee||Lite: $1 a month for taxable investment account.Personal: $3 a month for an investment account plus an IRA and a checking account.Family: $5 a month for all of the above plus investment accounts for kids.|
|Investment expense ratios||Exchange-traded fund expense ratios range from 0.03% to 0.18%|
|Account fees (annual, transfer, closing)||$50 per ETF to have your ETFs transferred to another broker when you close your Acorns account; no charge to sell your investments and have your money transferred|
|Portfolio mix||Five portfolio types that weight 7 ETFs based on risk tolerance|
|Accounts supported||Individual non-retirement accountsRoth, traditional and SEP IRAsOnline checking account with debit cardUTMA/UGMA accounts for kids|
|Tax strategy||Not available|
|Automatic re-balancing||Free on all accounts|
|Human advisor option||Not available|
|Tools||The app’s Potential tool lets you adjust the dollar amount invested to see how your total investments will grow over time|
|Bank account/cash management account||Personal and Family members get access to Acorns Spend, a checking account with a debit card, mobile check deposit and reimbursed ATM fees. No interest is paid on the account.|
|Customer support options (includes website transparency)||24-hour phone and chat support; response time is up to 48 hours, but a lot of information easily available on website|
Acorns Pros & Cons
|Acorn Pros||Acorns Cons|
|Saving made easy |
— Since the amounts taken out of your account are small, you won’t notice them missing from your account.
|Possible to Lose Principal|
—It’s possible to lose money with Acorns, although the recommended investments are pretty conservative.
|Investing With No Initial Deposit|
— Acorns doesn’t require a minimum deposit to start using the service. This encourages all and sundry to be part of this awesome investment app.
|Only for “Boosting” Your Savings|
— Acorns’ savings amounts aren’t really suited to save the 5% to 20% annually you need to put toward retirement or larger goals.
|Free for Students|
— To attract young investors and savers, Acorns services is free to use for any college student for the first four years.
— At small balances, Acorns fees can cut into or completely wipe away investment returns.
How to cash out Easily in 2021
Below are the very simple steps to be able to withdraw your invest on Acorns App:
- Sign into your account and click on ‘Acorns Account‘
- Next click on ‘Transfer Money‘
- Select the “Withdraw” option
- Enter the amount to withdraw
- Choose “Withdraw” and confirm withdrawal.
When you talk about savings and invests, Acorns app is on the top of the game. Acorns is a good start if you have little to save or need a nudge to start investing without affecting your lifestyle.
Acorns will help you save enough for a rainy day.
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