In this Acorns app review, we're discussing the popular micro investing app that makes it easy to invest the change from your everyday purchases. Not only does the app have a very user-friendly design, but you can also get started investing on Acorns with as little as $5. I’ll be going over all of Acorns features, covering it's pros and cons, and share who I think this app is most ideal for.
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- Get started investing with just $5
- Invest the spare change from your everyday purchases
- Choose from pre-built and diversified portfolios based on your investing goals
- Clean user-friendly app interface for new investors
- App features an investing account, a massive cashback portal, a mobile banking account, and a 10% cashback VISA debit card
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Acorns is 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. The Acorns app is available on both iOS and Android devices.
Acorns can truly be thought of as an all-in-one investing app solution. At its core, Acorns is an easy-to-use investing platform with several automation tools to help you invest with ease. But they now also offer a massive cashback portal, a mobile banking (checking) account, a cashback VISA debit card, and even have the option to open an additional retirement account.
I’ll go more in depth on each of these areas in just a bit. The main thing you need to know is that Acorns provides a very clean user friendly interface and uses easy to understand terminology for new investors to the stock market.
By bringing together robo advising technology and automated savings tools, the Acorns app provides a modern way of saving and investing your spare change.
In fact, there are several ways the Acorns app works with automation to help encourage investing and growing your portfolio.
Firstly, you can link your debit or credit card to your Acorns app, and the app will round up your everyday purchases to the nearest dollar. Once your spare change adds up to $5 Acorns will automatically sweep the spare change into your investment portfolio which you can view and track in the app.
There is no limit on how many debit or credit cards you can link to your Acorns account and this round up feature can be turned on and off at anytime.
And although these roundups are the bread and butter of the Acorns platform you can also invest lump sums of money manually or even set up recurring deposits for more passive investing.
If you want to build healthy investing habits without having to think about it then you will definitely want to take advantage of Acorns recurring deposits feature. This allows you to set up recurring deposits on a daily, weekly, or monthly basis. And these deposit amounts can be as small as $5.
This a great tool, because small consistent contributions are one of the best ways for new investors to get started investing. And just like their roundups feature, you can turn the recurring deposits feature on and off at anytime.
Acorns also has a cashback portal for your investment account built-in to the app, called Found Money. Through their Found Money portal Acorns has partnered with hundreds of major retailers such as Amazon, Walmart, and more. Acorns then invests anywhere from 1%-10%, or a set dollar amount, of your purchases back into your Acorns portfolio.
The interesting thing with this cashback portal is that instead of simply earning cashback for your everyday purchases, Acorns actually invests your cashback right back into your Acorns account so it can grow even more. I'll talk more about the cashback you can earn from their Found Money program further down below.
Acorns really takes the guesswork out of getting started investing. When you first create your Acorns account you will be give a short survey to help Acorns determine your investment objectives and financial goals. Acorns will then recommend one of their five pre-built and diversified portfolios for you to choose from.
Acorns currently offers five pre-built and diversified portfolios to invest in:
Each portfolio is composed of hundreds of stocks in major companies to help give you instant diversification, which can help reduce risk compared to investing in individual stocks.
Acorns portfolios are already well built and diversified so you don’t have to worry about actively trading stocks, researching companies, or constantly managing your portfolio.
And within each of these portfolio descriptions is a breakdown of what percentage of each dollar is being invested into different parts of the stock market:
They will also provide investment projections for each portfolio so you can get an idea of how your chosen portfolio will perform over the next year, 5 years, 10 years, etc.
Lastly, each portfolio description also includes a further breakdown of some of the featured holdings (stocks) within each portfolio.
The minimum amount to open an account and start investing on Acorns is just $5. Most larger investment brokerages require you to invest hundreds or even thousands of dollars just to get started investing in single stocks.
This allows you to start with as little as $5 and continue to invest whatever amount is comfortable to you on a consistent basis.
The beautiful thing behind this approach is that no matter how small of an amount you can afford to invest every week or every month, even small consistent contributions will add up and your investments will grow over time.
You can see my full Acorns app review in the video below:
Acorns offers three different account types:
And much like the Acorns core investing account, you can open a retirement account with as little as $5.
At it's heart, Acorns is designed to help you save and invest money without having to stress about it. Because of this, they've developed two easy ways that you can earn and invest cashback from your everyday purchases:
You can learn more about Acorns Found Money Program in my video below:
There are no fees to buy or sell any investments on Acorns. However, there is a fixed monthly fee to use the app. It can be as low as $1 per month for just the core investing account.
As a member of SIPC (Securities Investor Protection Corporation), Acorns is SIPC insured against brokerage failure. Securities in member's accounts are protected up to $500,000, including up to $250,000 in cash. For further details, please see www.sipc.org
SIPC insurance is investor protection for investment brokerages. Now unlike a bank's FDIC insurance, SIPC does not protect against the decline in value of your securities. Investments in the stock market are subject to fluctuations in market value.
However, SIPC protects against the loss of cash and securities – such as stocks and bonds – held by a customer at a financially-troubled SIPC-member brokerage firm. SIPC works to restore to customers their securities and cash that are in their accounts when any potential brokerage firm liquidation begins.
Who would I recommend the Acorns app for?
Ideal for new investors
Ideal for passive investing
Ideal for those looking to get a lot of value out of a single finance app
Who would I not recommend the Acorns app for?
Not as ideal for active stock traders
Not as ideal if you want to invest in individual stocks
For a limited time, when you join Acorns and invest your first $5 you will receive a free $10 sign up bonus to invest. If you'd like to try out the Acorns app feel free to join here and enjoy your free $10 sign up bonus.
If you're a new investor looking for an easy to use platform to get started investing, the Acorns app is a great option. However, if you're more interested in having access to investing in individual stocks and ETFs you may want to consider Stash or M1 Finance.
If you'd like to try out the Acorns app you can join here.
Or feel free to see how Acorns compares to today's other top investing apps here.