Acorns Review 2024: Is Acorns Safe and Legit?

This complete Acorns review will help you decide if this is the platform for you to save and invest your money. You can also make some money on the side with this app!

If you are located in the United States and are looking for a platform to save and invest your money, you should consider joining Acorns. Acorns is a financial wellness system that helps you establish good financial habits by allowing you to easily invest your spare change in a diversified portfolio made up of Exchange-traded funds. Through Acorns Earn, you can also receive additional earning opportunities when you shop, find a new job, or even invite a friend.

Acorns is one of the most popular saving and investing apps in the United States. It has over 9 million sign-ups since its inception in 2012. As a personal finance blogger who is passionate about financial wellness, I thought it would be valuable for me to write a comprehensive review on Acorns to help you decide if you should use Acorns as part of your personal financial plan.

Acorns Review: frequently asked questions

This review on Acorns will cover every little thing you want to know about this savings and investing app. You will discover what it is, if it is legitimate, how to sign up, how to use the app to save and invest, and how to earn money with this platform.

What is Acorns?

Acorns is an American financial technology and financial services company based in Irvine, California. It specializes in micro-investing and robo-investing. It was established in 2012 by father and son duo Walter Wemple Cruttenden III and Jeffrey James Cruttenden to promote incremental and passive investing. In 2014, Acorns launched an app for iOS and Android devices. The portfolio options you can choose from were designed in partnership with Harry Markowitz, a Nobel laureate.

Since its inception in 2012, Acorns has established itself as one of the leading micro-investing apps in the United States. It currently has over 9 million customers and $3 billion in assets under management.

Acorns’ mission is to “look after the financial best interests of the up-and-coming, beginning with the empowering step of micro-investing.”

Is Acorns safe and legit?

Since Acorns manages your money, it is very important to understand if Acorns is safe and legit. Rest assured that Acorns is a safe and legit app to help you save and invest money.

As a financial services and financial technology company, Acorns is serious about security. Here are the many steps that Acorns has taken to keep your account and information protected.

  • SIPC Protected Investment Accounts: Securities in your Acorns Invest and Later accounts are protected up to $500,000.
  • FDIC Insured Checking Accounts: Deposits in your Acorns Checking account is insured up to at least $250,000.
  • SSL Encryption: Acorns’ website and app are secured with 256-bit encryption. This means only you and Acorns can access your personal and financial information.
  • Account Alerts: We will alert you when we detect unusual account activity for protection against fraud.
  • Bank-Level Security: Multiple layers of security to safeguard your information, including secure servers.
  • Account Safeguards: Automatic logouts and ID verification help prevent unauthorized access.

Is Acorns a scam?

No, Acorns is not a scam. It is a legitimate company that helps you save and invest your money.

When you invest with Acorns, your money is invested into an Acorns portfolio. You can view how your investments are performing at any time in the “Performance” section of the mobile app or web app.

You can also withdraw available funds and/or close your Acorns account at any time. Withdrawals may take 3-6 business days.

Your investments are protected by SIPC (up to $500,000) and your checking account is insured by FDIC (up to $250,000).

How does Acorns select its pre-built investing portfolios?

Acorns’ portfolios were designed in partnership with Nobel Laureate in economics, Dr. Harry Markowitz. They were specifically tailored with long-term investing in mind. 

What do Acorns’ investment portfolios consist of?

Acorns offer 9 different investment options made up of exchange-traded funds trading on the stock market. ETFs for short, they are made up of broad holdings of stocks or bonds. Often, these ETFs replicate an asset class or an index like the S&P 500 or Dow Jones Industrial Average. Investing in ETFs will help ensure that you invest in a diversified portfolio. Diversification is important in managing your risk exposure.

You will choose from the 9 portfolios below for your Acorns investing account:

Core:
  • Conservative
  • Moderately conservative
  • Moderate
  • Moderately Aggressive
  • Aggressive
    • Here is an example of an aggressive portfolio:
      • 55% to large domestic companies through Vanguard S&P 500 ETF (VOO)
      • 30% to international stocks through iShares Core MSCI International Stock (IXUS)
      • 10% to mid-cap stocks through iShares Core S&P 500 Mid-Cap (IJH)
      • 5% to small-cap stocks through iShares Core S&P 500 Small-Cap (IJR)
Sustainable (for socially responsible investing):
  • Moderately Conservative
  • Moderate
  • Moderately Aggressive
  • Aggressive

You can check out the exact compositions here.

The portfolio will be rebalanced automatically regardless of which one you choose.

Which investment portfolio should I choose?

When you sign up, Acorns will ask you a series of questions to determine your financial situation and goals. Acorns will then recommend you a mix of ETFs that will become your portfolio. The portfolio recommendation is designed to maximize your potential return for your selected level of risk. You can change your portfolio any time you like.

It is very important to answer the questions honestly to get the recommendation most suitable for you. A common investing pitfall is to invest in a portfolio that is riskier than what you can actually tolerate. You will have trouble sleeping at night if the market faces a downturn.

Is Acorns a good investment?

Acorns is not a free service. However, starting at just $1 a month, it is a great way to build good financial habits and start seeing the power of saving and investing.

Of course, if you feel like Acorns isn’t a great fit for you after trying it, you can cancel the subscription at any time.

Acorns Review: How much does Acorns cost?

Acorns charges a flat service fee and operates on a subscription basis. The flat fees structure allows you to easily predict how much you are spending every month.

Acorns offers three membership tiers:

  • Acorns Personal: $3 per month
  • Acorns Personal Plus: $5 per month
  • Acorns Premium: $9 per month

Acorns Personal Personal subscription

At $3 a month, the first tier, Acorns personal account, gives you access to the following:

Investing

  • Investment account with an expert-built, diversified portfolio
  • Save and invest spare change everyday with Round-Ups®
  • IRA retirement account

Banking

  • Checking account that saves and invests for you
  • Instantly invest spare change with Real-Time Round-Ups®
  • No overdraft fees.
  • 55,000+ fee-free ATMs nationwide and around the world
  • Heavy metal Acorns Visa™ debit card

Earning

  • 450+ in-app partner brands to earn bonus investments with
  • Find a side hustle with Job Finder
  • Browser extension to get bonus investments every time you shop at 15,000+ partners

Learning

  • Grow your financial confidence with videos and tips for investors both experienced and new

Acorns Personal Plus subscription

At $5 a month, you get access to the following:

Investing

  • Investment account with an expert-built, diversified portfolio
  • Save and invest spare change everyday with Round-Ups®
  • IRA retirement account

Mighty Oak Banking

  • Checking account that saves and invests for you
  • Instantly invest spare change with Real-Time Round-Ups®
  • No overdraft fees.
  • 55,000+ fee-free ATMs nationwide and around the world
  • Limited edition, tungsten metal Mighty Oak Visa™ debit card
  • Emergency fund for life’s unexpected hiccups
  • Grow your money with 3.00% APY on Checking, 5.00% APY on Emergency Fund

Earning

  • 450+ in-app partner brands to earn bonus investments with
  • Find a side hustle with Job Finder
  • Browser extension to get bonus investments every time you shop at 15,000+ partners
  • Get your bonus investments matched by Acorns (up to 25%)

Learning

  • Grow your financial confidence with videos and tips for investors both experienced and new
  • Live Q&As with investing experts

Acorns Premium subscription

At $9 a month, you get access to the following:

Investing

  • Investment account with an expert-built, diversified portfolio
  • Save and invest spare change everyday with Round-Ups®
  • IRA retirement account
  • Investment account for kids
  • Customize your portfolio with the ability to add individual stocks

Mighty Oak Banking

  • Checking account that saves and invests for you
  • Instantly invest spare change with Real-Time Round-Ups®
  • No overdraft fees.
  • 55,000+ fee-free ATMs nationwide and around the world
  • Limited edition, tungsten metal Mighty Oak Visa™ debit card
  • Emergency fund for life’s unexpected hiccups
  • Grow your money with 3.00% APY on Checking, 5.00% APY on Emergency Fund

Earning

  • 450+ in-app partner brands to earn bonus investments with
  • Find a side hustle with Job Finder
  • Browser extension to get bonus investments every time you shop at 15,000+ partners
  • Get your bonus investments matched by Acorns (up to 25%)

Learning

  • Grow your financial confidence with videos and tips for investors both experienced and new
  • Live Q&As with investing experts
  • Educational courses

Banking for kids with GoHenry by Acorns

  • GoHenry is a debit card and learning app made just for your kids
  • Kids choose from over 45+ debit card designs
  • Chores tracker and automated allowance for kids
  • Parental controls with real-time spending notifications
  • Award-winning videos and quizzes teach kids and teens money skills

More Premium-only benefits

  • $10,000 life insurance policy for eligible customers
  • No-cost Will to help plan for your family’s future (valued at $259)

How do I invest with Acorns?

There are three main ways you can invest with Acorns: Round-Ups, Recurring Investments, and one-time investments.

Round-Ups®

With Round-Ups®, Acorns rounds up any purchase made from a linked account, debit card or credit card to the next dollar. Acorns then invest Round-Ups® in your Acorns Invest account when they add up to at least $5 from all linked accounts. You can find and manage your Round-Ups® within your Invest account.

Round-Ups® will always be transferred from your Funding Source, or personal bank account.

Recurring Investments

Recurring Investments allow you to invest as little as $5 per day, week or month into your Acorns accounts.

One-time investments

You can also make one-time investments anytime to boost your account value.

Acorns Review: the sign-up process

The sign-up process is very simple and straightforward. You can sign up on their website or through the Acorns app. Here are the steps:

Head to Acorns

The link in the title will take you straight to Acorns’ sign-up page. No more need for googling!

Create an account

You will be asked to enter your email address and create a password. Note that you must be a US resident and be at least 18 years old.

If you in Canada, you can use Moka instead!

Select your subscription level

Next, you’ll select your plan level, Personal, Personal Plus or Premium. Again, the monthly fee for these accounts are $3, $5 and $9 per month, respectively.

Choose your Round-Up® setting

Next, you will need to set your Round-Up® setting. You can either round up to the next nearest dollar, or use the Round-Up Multiplier to multiply the round up all the way up to 10 times the regular Round-Up amount.

Provide standard information

You’ll then be asked to provide the standard information needed to open a financial account, including your full name, physical address, and Social Security number.

Answer questions about yourself

Finally, you’ll complete a series of questions that will be used to determine your investment profile and risk tolerance. Based on your answers, Acorns will recommend a portfolio that maximizes your rewards while balancing risks.

Start investing

Congratulations, you are now ready to begin investing with Acorns!

Ready to have automated savings with Acorns and watch your nest egg grow? Sign up for Acorns today!

Can you earn money with Acorns?

Yes, you can earn additional money with Acorns Earn and by inviting a friend to join Acorns.

Acorns Earn

Acorns Earn is a Chrome Extension that helps you earn more money when you shop, find a job, and more. Acorns has partnered with over 12,000 brands, including Groupon, Old Navy, Walmart, Sephora, and so on, to help you earn more money.

When you browse the shops online, the Acorns icon will light up to let you know that a bonus investment is waiting. Simply log in to activate your offer, and earn more to save and invest more!

Invite a Friend

Simply tap “Invite a friend” from your Acorns profile. For every friend who becomes a new Acorns subscriber and sets up an Acorns Invest account using your personal referral link, you and your friend both get $5 invested. Acorns will also offer big referral bonuses on top of the $5 to help you earn even more money.

Alternatives to Acorns

Of course, Acorns isn’t the only reputable online platform from which you can save and invest money. Here are some other best investment apps you can try.

Moka

For all the Canadians out there who would love to micro-invest, Moka is your answer. Moka is Canada’s #1 automatic saving and investing app. Simply download the app, create a goal, link your bank, and you’re good to go! Moke also offers a cashback feature so you can save more and earn more. Sign up for Moka here!

SoFi Investing

Looking to become an active investor without having to pay account fees? SoFi automated investing is your answer. Deposit $100 to make your first trade or your next trade with SoFi Investing today!

iOS users: Sign up for SoFi here.

Android users: Sign up here!

Stash

Stash Invest is another popular automated investment app. There’s no required investment minimum.

For a limited time, Stash is offering a free $5 bonus when you add $5 or more to your personal portfolio. Claim your $5 bonus by signing up for Stash today!

Wealthsimple

Wealthsimple is another leading robo-advisors out there in the world. It is the simple way to grow your money like the world’s most sophisticated investors. $0 account minimum required. Note that you can also use Wealthsimple to help file your tax returns. Sign up for Wealthsimple here!

Schwab Intelligent Portfolios

This option offers tax-loss harvesting as part of their services, but you’ll need at least $50,000 in assets to take advantage of it at Schwab.

Is Acorns for me?

How do you determine if Acorns is the right fit for you? Answer the following questions for yourself:

Do I struggle to save?

If the answer is yes, then Acorns can be the answer for you. If you have trouble putting money aside, you will want to automate your savings as much as possible. Acorns’ Round-Up and Recurring Investment features will help you with exactly this issue.

Do I have small amounts of money to invest every week/month?

If you answer “Yes”, then Acorns can be a great option for you. Acorns is a micro-investing platform designed for helping you invest regardless of how much money you have. For as little as $1 through the Round-Up feature, you can see how your money can grow.

Do I prefer a hands-off approach?

Acorns is a great app for people who prefer a hands-off approach to investing (also known as passive investing). It has pre-built portfolios that auto-balance themselves, making it really easy for you to invest.

If you want to be an active investor, you may want to try a platform like SoFi investing instead.

Am I a US resident?

Acorns is only available for US residents at the moment.

If you are Canadian, you should give Moka a try. Sign up for Moka here.

Do I trust robo-advisors?

If you are comfortable letting a robo advisor be your guide, then Acorns is a good option for you. However, if you prefer human interactions, you may want to look for human financial advisors instead.

Acorns Review: Final Words

This is it! My comprehensive Acorns review. With a reasonable monthly management fee starting at just $3 a month, you can save and invest your spare change effortlessly and reach your financial goals. Is Acorns worth it if you want to give it a try? Definitely! Sign up for Acorns today!

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