If you’re searching for a very affordable investing tool or a streamlined way of investing your enormous cash, then the Acorns app would be an exciting option compared to other popular investing apps or platforms out there.
This Acorns review is aimed at giving answers to questions that are frequently asked by individual investors or consumers who are interested in earning handsome returns on their excess or spare cash.
These questions include: How does the Acorns app work? How secure and safe is Acorns investment app to use? How do I use the Acorns app? What are the various Acorns app fees? What are the pros and cons of Acorns app?
Acorns is an investment app founded by Walter and Jeff Cruttenden (both father and son). Back then Jeff was in college and observed that many students encountered hardship managing their spare cash and putting such funds into good use.
In view of this insight, Jeff took a decision to introduce the Acorns investment app with the sole objective of helping people effortlessly investing their spare change in different portfolios.
What Is Acorns and How Does Acorns App Work?
Acorns is by Proclamation the foremost investing mobile application for that allows you to open an account on your Smartphone. Acorns is an investment mobile app that simplifies and automates investing with the goal of either reaching short-term savings or building wealth.
With your mobile phone, you can easily connect your bank accounts and invest the spare change from purchases you incur every day. Unequivocally, the Acorns app is aimed at much younger, more tech-geeks generation (of the millennium), as the whole investment experience is being carried out and managed from a Smartphone.
In its effort to extend its services are all-encompassing to all Acorns recently introduced a web-based version as well for desktop and portable users.
Acorns app works this way. Anytime you make a transaction with your debit or credit card, the Acorns app will round up your transaction value to the nearest value and then allocate this spare change to your funds of investment.
Here is an example, assuming that you went out and bought a cup of coffee at a shop for $3.67. The Acorns app would simply round the value of $3.67 up to $4.00 and then allocate the $0.33 difference to your investable pools, but the app does not transfer the $0.33 out of your bank or credit account – yet.
As you conduct more transactions, the app will keep on aggregating (allocating) the spare cash amounts until you reach the $5 threshold. At this point, the app transfers $5 from your bank account and invests this amount in calculated portfolios.
• Available Accounts- It allows for Individual account only. It doesn’t allow for retirement accounts.
• Free Investment for Young People and Students (New Feature)- It provides free investment for Individuals under 24 years of age and those attending college.
• Minimum Value for Deposit- it allows you to start immediately.
• Acorns app
• Annual Fees- $1 per month for accounts from $5,000 downwards, or 0.25% per year for accounts above $5,000.
• Mobile App and Website Access- It supports iPhone and Android and the recently introduced website access.
• Round-Ups Advantage- For each credit or debit card transaction the Round-Up to the nearest dollar is invested into Acorns or your investable pools.
• Scheduled Deposits- There is the setting of recurring daily, weekly or monthly investments.
• Found Money(New Feature)- On every shop you make with Acorn’s Found Money partner brands (such as Jet, Dollar Shave Club, 1-800 Flowers, JackThreads, Hotel Tonight, etc.) , they invest in your Acorns account. This feature is currently in beta.
How Secure And Safe Is the Acorns App to Use?
Yes, the Acorns app is safe to use due to its 256-bit encryption protection and multi-factor authentication. Acorns works to ensure that the security of your information is guaranteed by preventing unauthorized account access and notify you of unusual activity.
This can be seen in the following:
1. Every Acorns accounts are insured up to $500,000.
2. Acorns contacts you about any unusual activity to prevent fraud.
3. Secure servers, security protected by McAfee, privacy verified by physical security
4. Multi-factor authentication, automatic logouts, and ID verification helps prevent unauthorized access
How Do I Use the Acorns Investing App?
Using the Acorns app entails a very simplified steps (starting from signing up, downloading, and starting to use the app) briefly summarized below.
The first step to using the Acorns app is by signing up with Acorns to get started. At this point you’ll need to provide your email address and create a password.
• To download the Acorns app, you can do this by either entering your phone number on their website or by downloading the Acorns application at the Apple App Store or via Google Play Store.
• Upon the installation of the free Acorns, you’ll need to provide your online banking login details (this generates the roundups) and your checking account and routing number (where your money is taken out from).
What Are The Various Acorns App Fee?
The Acorns investing app has a very simple fee structure, and this includes a $1 a month fee for accounts that are $5,000 or less, while for Accounts with $5000 and above are charged an annual Acorns fee of 0.25% of their account value.
Acorns app allows fee-free investment for students and anyone less than 24 years, these individuals can invest without paying any fees.
• Start Investment Immediately With No Money—One of the great advantages of Acorns app investment program is that you’re not required to have a minimum deposit before starting to use their service.
• No Complexities of Investing—You can easily start investing on Acorns even without any understanding of the modern portfolio theory.
• Stress-Free Way to Save—You feel no pain when money is taken out of your account since the amounts pulled out are small.
• Possibility of Losing Principal—There is every possibility you can lose money with Acorns, though the investments recommended are very inflexible.
• Absence of Retirement Accounts—Acorns doesn’t have provision for retirement accounts. There is no option to invest your spare change into a conventional or Roth IRA account. All investments are subject to tax.
• It is Only for Hiking Your Savings—Acorns investment is only for boosting your savings as the money can’t be put towards larger goals or retirement.
My Overall Take On The Acorns App
Acorns is great to use if you have little to invest or need a reminder to start investing without affecting your lifestyle. The only thing that I would say is if you are trying to use this as a retirement plan, you have to think again because the monthly deposits are way too little to be considered a serious method for savings towards retirement.
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I hope this review on the Acorns App has helped answer any questions you might have had, if I didn’t please feel free to drop your question or comment below and I will get back to you. Thank you for your time.