Looking to Start Investing?
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Have you heard about Acorns? It is a Micro Investing site that connects with debit or credit cards and rounds up your transactions, investing the change.
I was looking for a way to save money in an account that I would have a hard time accessing. Digit was recommended to me but they did not support my bank. I have an Ally savings account, a few actually, but I use them as regular savings accounts and access them regularly. I was really looking for something I could “set and forget.” Finally I found Acorns, and it is perfect!
How it works:
When you sign up they will take you through a series of questions to determine how aggressive you want to be in your investing. You will add a bank account and credit card for them to monitor. As you use your account and card Acorns will round up each transaction and invest those small amount for you. These are called Round Ups. You can also log in to do a Quick Invest where you deposit a lump sum, up to $10,000 a day.
One of the new things they are doing now is partnering with companies that will give you a reward for buying with them. This is still in Beta but is called Found Money. I recently sent flowers through 1-800-Flowers and received $15 in my account just for using the credit card attached to my Acorns account! It is a great way to get some money back for things you would already be buying.
What it Costs:
Acorns will take $1 a month from your account. That’s it, no other fees or charges. You will start earning dividends right away on your balance.
Is it Secure?
Every Acorns account is insured up to $500,000 by the Securities Investor Protection Corporation (SIPC). Also, the website is secure, and does not store bank login information. To be safe though, as with every financial service, log out of the website and app after every use.
Can You Access Your Money?
Yes, you can make a withdrawal at any time. It takes 5-7 business days for money to be put into your bank account after verification. I haven’t made a withdrawal yet – I am using it as a savings account for a down payment on a house, so it will be a while until I try.
Conclusion
This has been a great app for us. I don’t even notice the money being taken from our account. They take it out when it reaches about $5, sometimes as much as $8 is removed but it is still so small I don’t miss it. We are closing in on the $500 mark after about six months of us. It is fun to log in a few times a month and see how much it has grown. I like that this is so easy to use, and yet I’m not tempted to use the money since it is not my regular bank.
Have you tried Acorns yet?
I have sons ages 22, 21, 16 qnd 10. I set up a Robinhood account for the two eldest. They can buy stocks with no fees, even one $2 stock. The no fee is up to 10k. I gave each 500 to start and they are both doing an amazimg job saving and picking stocks. Each bought Facebook in the 40 dollar range, bought ebay and recieved free paypal stocks and both now own one share of Amazon and one of Google. I think Acorh is ideal for the two younger boys and will certainly look into opening accounts. Thank you for the helpful tip.
I love that idea! I will have to check out Robinhood. Thanks for the tip!
Been looking into Acorns lately, think it’s a cool novelty, but the hidden fees are a little frustrating. You have to pay the account servicing fee each month or annually if over $5k balance but then there is an additional charge for which ever portfolio you chose.
The fees also aren’t recorded on the app monthly where you can see the amount deducted. That annoys me too.
That said, I think when you know the ins and outs and if at an early stage of your investing life, Acorns would be wonderful. I’m probably more inclined to do it myself for all the reasons above.
I had never invested before and this has really been a great way to start. I like that I don’t even have to think about it, little amounts are just taken and invested and I can just check in a few times a month.
Thanks for stopping by!
Ive had acorns for over a year now, i use it as a savings account aswell. Its a good way to hide money from yourself without even knowing it! They give you 5 options for your account, ranking from risky investments to safe investments. Initially, i had it in the risky side, as i was not worried about the money i had put aside for it. I do keep an eye on the market, aswell as letting acorns do the work. This helps because previously i had been advised that the market was going to be going through a dip, and for that reason i was able to switch my account to the least risky, and wound up being more conservative, this minimized my opportunity to lose money. And my balance never dropped below my initial investment and quickly began coming up just as fast as it had before in the risky category. Id say use acorns AND pay attention to the market. Do not crawl under a rock just because someone else is managing your investments!
I agree that you have to keep an eye on things. I usually log in once a week to check on things and I have changed my options a few times. I’m glad it is working for you!