Acorn review. Advantages and disadvantages of this investment app

On this occasion we present a acorn review, a financial application that rounds up what you spend on your purchases to the nearest dollar to transfer the difference to an investment account.

The currency exchange saving tool of Acorns and the cashback rewards program make investing easy. But small account management fees can be high.

Acorns Review: Advantages and Disadvantages

Advantages

  • Automatically invests the change (very small amounts).
  • Refund of money in certain shops.
  • Availability of educational content.

Disadvantages

  • Small investment portfolio.
  • High commission for small account balances

Acorns vs. other advisers

Acorns Sophie Wealthfront
DUES

$1 – $3

per month

DUES

0%

Administration fees

DUES

0.25%

Administration fees

MINIMUM ACCOUNT

$ 0

MINIMUM ACCOUNT

$ 0

MINIMUM ACCOUNT

$ 500

PROMOTION

None.

There is no promotion at this time

PROMOTION

Free

Professional advice plus discounts on loans with a qualifying deposit

PROMOTION

$ 5,000

Amount of assets managed for free

Acorns Review: Full App Review

Acorns has modernized the old-school practice of holding loose change, fusing the model of robo-advisor with an automated savings tool. This company charges $1 a month for a taxable investment account, $2 a month to add an individual retirement account, or $3 a month for an Acorns checking account (called Acorns Spend, which we’ll cover later in this Acorns review). Acorns), plus investment and retirement accounts.

Acorns works by rounding up your linked credit or debit card purchases, then passing the switch to a computer-managed investment portfolio. This model has become a good tool to save more.

Acorns is great for:

  • Investors who don’t want trouble
  • People who find it hard to save

Acorns at a glance

Account Minimum $0 to open the account; $5 required to start investing.
Account Management Fee $1 per month for the taxable investment account.

$2 per month for the IRA and investment account.

$3 per month for checking plus investment and retirement accounts.

Investment expense ratios Expense ratios for exchange-traded funds 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 for selling your investments and having your money transferred.
portfolio mix Five portfolio types weighting 7 ETFs based on risk tolerance.
Supported accounts Non-retirement individual accounts.

Roth and traditional IRAs.

Online checking account with debit card.

tax strategy Not available.
Automatic rebalancing Free on all accounts.
The Human Advisor Option Not available.
Tools The app’s tool allows you to adjust the amount of dollars invested to see how your total investments will grow over time.
Bank account/cash management account The Acorns Spending Account includes a debit card, mobile check deposit and check mailing, but no interest is paid on the account.
Customer support options (includes website transparency) 24/7 phone and chat support; the response time is up to 48 hours, but there is a lot of information available on the website.
Promotions None.

What is the best thing about Acorns?

Automatic approach: a tool that encourages automatic saving without realizing it. If you don’t have to think about saving, you’re more likely to do it.

Acorn sweeps up excess change from every purchase you make using an account linked to an investment portfolio. For example, if you go to eat at a restaurant and pay $10.75, Acorns rounds up to $11 and transfers the difference ($0.25) to the investment portfolio.

You can connect as many cards as you want, although all rounding is done from the same linked checking account.

With every purchase, Acorns rounds up to the nearest dollar and gives you the option to transfer that change into an investment portfolio. You can do it automatically, so each purchase is rounded up and the change is transferred automatically. It can also be done manually by reviewing recent in-app purchases and selecting which round-ups to transfer.

Although these round-ups are the bread and butter of the Acorns platform, you can also manually invest lump sums or set up recurring deposits on a daily, weekly or monthly basis. Lump sum transfers can be as little as $5.

Acorns new spending account is a checking account with an online debit card. Acorns Spend offers real-time rounding to your investment or retirement account, mobile check deposits, free ATMs (or refunded ATM fees), and no minimum balance requirement.

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