In this post, we will be reviewing the Acorns investment app, covering all the new features and how to make money with the Acorns app. And also briefly touch on how the Acorns app compares to other popular investing apps.
The Acorns app is probably one of the simplest and cleanest apps. The app has continued to add new features and constantly updating their app for users. But they’ve kept the app relatively clutter-free, easy to navigate, and they’ve made it a really user-friendly experience, especially for newer investors.
What is Acorns App?
Now, if you’re new to the acorns app, you may be wondering, what actually is the acorns app? Well, the Acorns app is actually a popular micro-investing app that makes it easy for new investors to invest in the stock market through their pre-built and diversified portfolios. So they already have the investment portfolios pre-built and designed for you. You get to choose which ones you want to invest in. And we’ll get into that in the following paragraphs. The app is available on both Android and iOS devices.
How Does Acorns App Works?
So let’s now take a second to talk about how the Acorns app actually works. Acorns have several built-in automation tools to help make it easy to invest without really having to think about it. Now, they do this in a couple of different ways. And the first way is called their roundups feature.
The Acorns app was initially built on this roundups feature. It’s basically investing the spare change from your everyday purchases. So on the homepage of the app, you’ll notice that if you go on where it says to invest for your future. If you click on that, it’ll open up your core investment account and you’ll see where it says roundup settings. If you open up that this is where you can turn on a roundup.
So essentially with roundups, you can link unlimited debit or credit cards to a quartz account, and you can turn on roundups here. And monitors your everyday purchases, if you’re at a restaurant or any online shopping, Acorns will then round up that purchase to the nearest dollar or the amount you spent. You can set whole dollar roundups or less if you’d like and it will take that spare change and set it aside for you in a pool. And once you have reached at least $5 worth of spare round of change. Acorns will then automatically invest that money into your Acorns investment portfolio.
Now as you notice, you can actually turn this feature on and off at any time where it says roundups. If you want to turn that feature back on, just click that to turn it off. Hit that now the roundups feature is the bread and butter of the Acorns app. This allows you to invest passively without having to think about it. If you don’t want to, you can always turn that off right there just like that. And instead, you can choose one time where it says one time. You can manually make a one-time lump sum investment, just the same. So let’s say you want to invest $5 $25 $50 or $100.
As it says you can choose any one of those, or you can put a custom amount. So you do have that option. You also have the option to automate recurring deposits into your Acorns account. And that is beneath roundup settings where it says recurring. And on this page, you can set up recurring deposits directly into your Acorns investment account. Simply toggle on that, switch right there, you can set your custom amount. So if you want to invest $5, you can set recurring them out and you can choose the cycle. You can say I want to invest this daily, weekly, or monthly. And you can even set the day of the month that you’d like this recurring deposit to occur. So it does give you a lot of customization.
Again, you could say I like to invest $5 every week, you can back here today you can change that to I like to invest $50 every month. So you really have a lot of customization. To automate your investing, make it very passive and really light to invest without having to really worry about it or think about it. And again, just like the roundups feature you can turn on and off the recurring deposit feature anytime.
The third automation tool they have is actually not only earning but investing cashback directly into your acorns portfolio. This feature with Acorns is nice because a lot of other apps allow you to earn cashback with a lot of cashback portals online. But the acorns app takes it a step further because they allow you to not only earn cashback but actually invest that cashback rights your Acorns portfolio.
How to Earn and Invest With Acorns?
So there are two ways to actually earn and invest cashback on Acorns. The first way is through their found money program. So if you want to click where it says earn found money on the homepage. You’ll notice there are hundreds of major retailers, you have major ones like Amazon, eBay Apple. you’ll find Pretty much all major Walmart you’ll find Chevron even seeking to meet cashback for gas and invest that.
It’s really crazy how many options they have here. But there are hundreds of retailers that Acorns is partnered with that you can earn cashback from. So the way it works is you can link again the unlimited amount of debit or credit cards to your Acorns app. And when you purchase any one of these retailers to the Acorns investment portal, you’ll then earn that cashback and have it invested directly into your Acorns investment portfolio.
Now the second way to earn cashback through acorns is actually through with local found money. So their main found money portal, it has hundreds of major online retailers for online purchases. If you click on Local Found Money, that will open up a Google Map near you. And it will show you all kinds of local restaurants, merchants and retailers where you can earn cashback locally, just the same as online. So you can scroll through here, you can pull up and click nearby offers. It will show you different places nearby where you can earn cash back and how much cashback you can actually earn just the same.
How To Use the Acorns App?
We’ve covered the different ways, Acorns helps you automate your investing and saving. Let’s talk about how you actually get started on the Acorns app. Because if you’re a new investor, you’re wondering, how hard is this to get started? Well, it’s actually pretty easy. Essentially, when you sign up for acorns, they’re going to give you a brief survey very short. Where they just want to find out your investment objectives and your financial goals. So this will help them to recommend one of their five pre-built and diversified portfolios for you to choose from.
Now they have five different portfolios. So if you go back into the investment account of Acorns and you click on portfolio, this is where you can see they have five different portfolio options. The first is conservative. This one is heavy in bonds, both government and corporate bonds and has a lower percentage of stocks. Then you have moderately conservative, you have conservative moderate, which is kind of a combination of half stocks and half bonds, you have moderately aggressive.
Lastly, you have aggressive which is heavy and stocks and lower and bonds. So again, when you take that brief survey when you first sign up for Acorns, it will recommend one of these portfolios for you based on how you answer that survey.
Now, don’t worry, you can change your portfolio at any time without restriction. But again, we recommend taking the survey when you first sign up to find the right portfolio option for you. So let’s talk about the account minimum to get started investing with Acorns. So one of the cool things with Acorns is actually it’s great for new investors. Because you can start investing with as little as $5.
Many traditional investment brokerages such as E-trade or Fidelity do require hundreds or even thousands of dollars just to get started investing. As we said, you can get started with as little as $5 and work your way up from there. This basically allows you to start with a small amount and again set up either the recurring deposits or the Roundup feature.
Investing cashback allows you to invest over time gradually, with small consistent contributions. And this is a great way for new investors to get started investing and encouraging passive investing.
Acorns Account Types
So let us cover the different accounts offered through the Acorns app because you do have a couple of options. Now the first option is called Acorns Core. This one is your core portfolio on the homepage, where it says invest for your future. That’s your core investment account. That’s where you can invest in the stock market through Acorns. Again, using those various automation tools to help you invest.
The next type of account is actually called Acorn Spend. Now, this is underneath your core investment account where it says spin smarter. If you click on that, this is actually their mobile checking mobile banking account. Now, this account actually does come with a Visa Debit Card. This is linked to your Acorns mobile banking account. This will allow you to basically allows you to easily transfer your funds between your investment account and your mobile checking account. And then you could spend those funds with your Acorns debit card.
Now, we don’t recommend spending all your investments on things you don’t need. But if you need to transfer any money over from your investments, to purchase something that you absolutely do need the Acorns. A debit card is a great way to access those funds quicker than having to transfer it to your external bank. And there’s no minimum balance required to maintain the account. So it’s a really, really cool way to access your funds if you need them from your Acorns portfolio.
You can actually also choose to set up a direct deposit into this account if you like. And there are other features like an ATM finder, where you can actually find local ATMs near you that are free from fee. And it also says you can deposit checks as well. That’s a feature that’s coming soon to the Acorns spin checking account.
The third type of account offered on Acorns is called Acorns Later. This is basically a retirement account through Acorns. This allows you to set up various kinds of individual retirement accounts also known as IRAs. It allows you to set up both IRA, a traditional IRA or a SEP IRA, which is for self-employed persons. The earlier you can start saving for retirement, no matter how young you are, no matter how old you are, the better the earlier you can actually retire. It just really does pay off to start saving early. So those are the three different account types offered on the Acorns app.
Pricing of Acorns
Now, let’s talk about how much do acorns cost to use? What is the pricing? What are the fees? Well, first of all, there are no commissions to buy or sell any of your investments. There are no fees, no cost to withdraw as well. But there is a fixed monthly fee to be as acorns member and that does vary based on how many accounts you have with them.
If you’re just using the core investment portfolio, that is a fixed fee of $1 per month for balances up to $1 million. Now the cool thing is if your Student Acorns is actually waved this fee. It’s free to use for up to four years for as long as you’re a college student. So if you’re a student definitely consider taking advantage of that opportunity from Acorns.
The second thing is Acorns Later. If you want to get an Acorns Later account, which is the retirement account, plus the non-retirement investing account, that is $2 per month, so basically $1 per month for each account for both the retirement account and the standard non-retirement investment account.
The third membership is actually a combination of getting the Acorns core investment account- the acorns later, retirement account and the acorns spin mobile banking account. If you want all three of these accounts in your Acorns app, that is a fixed fee of $3 per month. Another question often gets on the Acorns app is investing in the Acorns app safe. Well, the Acorns app is registered with both the SEC and FINRA and they are SIPC insured for up to $500,000, including up to $250,000 in cash for brokers’ failure. So either way, you are protected by the SIPC insurance.
Pros and Cons of the Acorns App
So before we finish up this review, let’s go over a couple of pros and cons of the acorns app to help you decide if this is the right app for you. So firstly, on the pro side, we will say that the Acorns app is great for new investors. The reason for this is because it’s easy to get started investing, they make it easy with as little as just $5. They use very easy to understand terminology inside their app. It’s a clean and simple user-friendly interface, just the same.
The second type of investor, we would say the Acorns that were ideal for is actually for college students. It’s a $1 per month fee to use coins. But if you’re a college student, it’s free for up to four years. So if you’re a college student, the Acorns app definitely makes a lot of sense.
And the third type of investor we would recommend the Acorns app for is actually an investor who wants to get a lot out of a single app because like we said, the Acorns app is very versatile. Not only do they offer an investing account inside their app, but they also have the option to open up a retirement account. Mobile Banking account where you can transfer funds with the Acorns debit card between your investments and your checking account. So it really does give you a lot of versatility in one app. Plus they provide several automation tools to help you invest easily and passively without having to think about it.
Some of the cons of the Acorns app and who we would not recommend it for. So firstly, we would say the Acorn app is not as ideal for active stock traders. The Acorns app really does encourage long term investing, long term growth of your investments. But if you’re an active stock trader and you want to day trade or swing trade, or trade stocks actively, Acorns is not as ideal for you.
As we said, it’s more geared towards long term investing. If you want to do short term, trading, active and trade stocks, individual stocks actively. We would probably recommend checking out Robinhood App and the likes. Those are stock trading apps that are more ideal.
The second type of investor we would not recommend the Acorn app probably be those who are looking to invest in individual stocks. The reason we say this is because Acorns is kind of limited with their investment options. They only give you those five pre-built portfolios. And although they are diversified and well built, you only can choose from those five. And you can not invest in individual stocks. If you want to invest outside of one of their pre-built portfolios.
So if you made it all the way through to the end of this post, we give you a high five. If you’re still not sure if the Acorns app is the right investing app for you compare to some other alternative. If you do feel that the Acorns app is the right investing app for you, share this post. Leave us a comment down below if you have any questions on the Acorns app.