Acorns is an app where you can invest your spare change. It makes investing easy, even if you don’t have much money to play around with. Sounds good, but is Acorns app safe? Find out how Acorns looks after your money and your data privacy in this article below.
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Acorns aim is to help anyone get started investing with its smart app that rounds up your loose change to the nearest cent or dollar, whenever you make a purchase. Let’s say you buy a coffee for $3.50. You can set Acorns to round up the amount to $4, so that you can invest the 50 cents difference into your portfolio.
Acorns doesn’t invest the spare change straightaway. It calculates the “round ups” from your purchases until you reach $5 in savings, and then it transfers this amount from your checking account into your investment account.
The app is fully automated and may be helpful if you usually struggle to save. Acorns drip feeds small amounts into your investment account without you really noticing.
When you sign up with Acorns, you’ll choose one of five portfolios based on your approach to risk. For example, there’s a conservative portfolio, an aggressive portfolio and three others that sit in the middle. Each portfolio is made up of six different ETFs. You’ll need to link your bank account/debit card to Acorns, so that it can round up and deposit your change when you spend on something.
Acorns has partnered with more than 200 top brands in its “Found Money” feature. If you spend with these retailers, they will contribute to your investment account too!
There is no minimum balance required with Acorns, unlike some other robo-advisors. Acorns is available for $1 per month which gives you access to its automated investment technology, a choice of smart portfolios, Grow Magazine (money saving and wealth tips), Found Money and a support team if you need it.
If you upgrade your service to Acorns and Acorns Later (an IRA plan), you’ll be charged $2 per month. $3 per month will get you Acorns, Acorns Later and Acorns Spend which is a checking account with no overdraft or minimum balance fees and unlimited free or fee-reimbursed ATMs nationwide. Acorns Spend is FDIC protected to $250,000.
How Acorns handles your data
Even though you have to connect your bank account to this app, Acorns doesn’t store your bank login details on their servers, which are protected with bank-level security in any case. Both the Acorns website and the app are secured with 256-bit encryption. Account safeguards such as multi-factor authentication and ID verification are in place to help prevent unauthorized access.
Is your money safe with Acorns?
Acorns now has more than 3.5 million customers using its services, so it is a legit app. Acorns is regulated by FINRA and is a member of the SIPC, meaning that customer securities are protected up to $500,000 and up to $250,000 for cash. Investments aren’t FDIC insured.
Acorns has over 250K ratings on the App Store, scoring (4.7 / 5) overall and more than 45K reviews on Google Play where it scores (4.3 / 5).
According to many reviewers on Google Play, Acorns is doing exactly what they expect from the service. One user said that overall it’s a good app and that he’d had no issues with withdrawing funds, but the Found Money contributions take way too long to get paid.
Another customer who had been using the app for 2 years rated Acorns as (5 / 5). She claimed the app was absolutely awesome, having received her yearly dividends which amounted to a tidy sum!
Over at the App Store, a user gave Acorns a glowing review saying that if you put emphasis on small dollar investing, big dollar future results can be yours. This person considered Acorn to be a great partner to help them grow financially.
Acorns has a few negative reviews, for example, some users have reported problems when trying to close their account or get hold of a customer service representative.
As with all investments, there is no guarantee that you’ll make a profit and you may even make a loss! If you still want to use an investment app though, Acorns is a contender. It’s useful if you’d like to squirrel away your spare change and have it invested automatically for you. Check out other investment apps like Wealthfront, WiseBanyan or Betterment before you decide.
*The facts and figures above are correct at the time of publishing.