As we push further into the future, many people start thinking long-term rather than only looking ahead at tomorrow. But more often than not, saving and investing for the future is difficult and requires lots of patience and self-discipline. Acorns solves the issue of saving and investing for us by sweeping the leftover change from purchases into an investment portfolio. This Acorns review will give you the highs and the lows of this clever little app.
What Is Acorns?
Acorns is one of a new style of investing apps that manage finances without any management or hands-on skills required, other than the initial linking of cards and accounts. Once that is complete, Acorns will round up any purchases made with your cards to the nearest dollar and push that extra change to an investment portfolio. Our Acorns review found it to be perfect for new investors and those who prefer to forget about their savings and let their money grow on its own.
The Acorns review we did found it to be one of the best for anyone who struggles with saving or just has no idea where to start. There are extras with this app that help beginner investors understand the language and how building an investment portfolio works. They also provide an online resource with additional advice and ideas on things like credit card debt, side jobs, building income, saving, investing, etc.
The Acorns app is the perfect choice for college students because they waive their $1 management fee for four years with eligible .edu email address. Beyond that, our Acorns review found its management fees quite comparable to other micro investment apps we checked out. The app charges a flat fee of one dollar for taxable investment accounts and two dollars for Acorns Later, which includes the retirement accounts. This seems like a low fee, and it is, as long as you have a solid portfolio that makes that dollar a smaller percentage of your investment. Other companies charge percentage fees for their services and the higher you go with your investment amount, the more competitive the Acorns fee becomes.
How Acorns Review Compares
We picked a few similar products available on the market to see how they compare. We reviewed based on best features, pricing, ease of use, quality, and warranty, along with a condensed list of the top pros and cons of each service.
Where To Invest
The Acorns app costs one dollar for taxable investment accounts and two dollars for retirement accounts. From there, Acorns charges a percentage as your investment accounts go up, making it highly competitive with its micro investment counterparts.
Ease Of Use
In our Acorns review, we found that Acorns was spot on for new investors and those struggling to keep up with saving their money. It provides resources to guide each new member through setup and gives them peace of mind as they begin their journey towards building wealth. In addition to its Grow online magazine, Acorns also offers a free five-step program on financial literacy, making it exactly what a new investor needs.
Acorns review offers a lot of bang for your buck with their flat fees and learning extras that members can take advantage of. As the percentages go up on higher portfolios, it becomes even more comparable, making it a top choice for newbies.
Because investing involves a certain amount of risk, none of these services offer a warranty or a guarantee for a return on investments. However, Acorns is designed to assist new investors in choosing prudent investments for their lifestyles.
Like Acorns, Betterment is another option in the growing market of micro-investing. They offer similar services with slight changes that really all come down to what is best for each investor’s plans. Betterment comes with goal planning for individual needs and has grown quickly as a popular name in the micro-investment world.
Betterment charges from .25% to .4% depending on the plan that is chosen.
Ease Of Use
Unlike our Acorns review, Betterment is a micro-investment opportunity for more experienced investors who would like to take more control with their portfolios. But new investors need not be fearful. Betterment allows full access to financial advisors to help every member with their investment questions. Betterment also gives personalized suggestions on spending habits and saving techniques—tips even seasoned investors can use.
Betterment offers a quality savings and investment opportunity at a great cost, and with it comes a perfect place to field any questions one might have on their portfolios. The management fee is highly comparable to others in its class and it is one that should not be forgotten when choosing the best micro-investment resource.
Because investing involves a certain amount of risk, none of these services offer a warranty or a guarantee for a return on investments. However, Betterment is one that assists new investors in choosing prudent investments for their lifestyle.
As with the Acorns review, we looked into what Robinhood has to offer in the same arena of micro-investing. Robinhood is much more streamlined than the competitors without all the bells and whistles that some of the other sites have. This can be good or bad depending on how much control you want over your portfolio. Robinhood is perfect for the investors who know what they’re buying and understand how to do it.
Robinhood requires no minimum investment and does not charge a trade fee. However, there are no current promotions running, so that could be a drawback for someone looking to jump into the investment world.
Ease Of Use
Robinhood is incredibly streamlined and easy to get going. The app is designed to be used on the go and on a smartphone specifically. This makes the sign-up process quicker with instant verification with a number of large banks. Simply enter user contact information and connecting account. That is all it takes to begin investing with Robinhood.
For investors who do not feel that they need much assistance in their investment choices, Robinhood is a great option. There are no hidden fees or agendas with this app. However, because there are no extra costs, that translates to limited extras such as financial advice.
Because investing involves a certain amount of risk, none of these services offer a warranty or a guarantee for a return on investments. For newer investors who have no idea where to start with their portfolio, it might be best to start with a service that teaches as it invests for you.
Similar in many ways to our Acorns review above, micro-investors can start up with Stash for one dollar for accounts under $5000 and .25% of accounts over $5000. They also offer free retirement accounts for individuals under the age of 25. Stash requires an account minimum of $5, but new users can get their first month investing with Stash for free.
Also very similar to Acorns, Stash offers learning opportunities for investing and saving for new users and allows its members to take control of their spending and investing habits. It asks questions to match individuals to their best money managing practices with an easy-to-use app layout.
Stash charges one dollar management fee for accounts under $5000, while charging two dollars for retirement accounts. However, individuals under the age of 25 can get their retirement account for free. For investment accounts over $5000, Stash charges a .25% management fee.
Ease Of Use
Stash offers an easy to use and navigable app system for new users to set up their first investment account for a minimum of $5 for an initial investment. With its guidance in investment opportunities, it’s a great starter app for those ready to dip their toes in an investment portfolio.
Because Stash offers such a great opportunity for young people looking to invest in their retirement, they get the most for their money by opening a free retirement account. Also, new investors get the chance to learn all about investing as Stash makes smart investments for them until they feel comfortable going out on their own. This makes Stash a great starter investment app, but once users turn 25 or feel comfortable moving on with their investment portfolio, they might consider a more advanced option.
Because investing involves a certain amount of risk, none of these services offer a warranty or a guarantee for a return on investments. However, Stash does assist new investors in choosing prudent investments for their lifestyle.
As with any decision making, what it comes down to is matching a product that meets the individual’s needs. With our Acorns review and subsequent reviews of its top competitors, we broke it down to give customers the best idea of what they are looking for.We gave Acorns an overall rating of 5 out of 5 stars for its easy-to-use design and teaching opportunities while allowing you to make investment choices based on your own personal preferences. It also offers the most for the money, especially with no minimum fees and the option for college students to get four years of Acorn usage for free.Betterment earned an overall rating 3 out of 5 stars for its goal-oriented teaching strategies on investing and the ease of use involved in setting up an account with this service. It falls short for investors who want to take their portfolio to the next level and do not need to pay more for advice and assistance.Robinhood also earned an overall rating of 3 out of 5 stars with us due to its design for more experienced investors. It is streamlined and easy to use with instant verification with many larger banks. There are also no hidden fees with this service, which means there are not as many features and teachable opportunities for investors new to the scene. Stash received an overall 4 out of 5 rating due to its ease of use with young investors. This micro-investment service is perfect for young people looking to start their retirement accounts since they offer them for free to anyone under 25. Beyond that, Stash might be a little more money than some seasoned investors want to bother with if they do not need assistance in making their investments.Micro-investing makes investment attainable for everyone, not just the people who have a nice chunk of change lying around. Whether a person has loads of experience with investing or is a freshman in college interested in saving for the future, all investors need is the extra change from their everyday purchases and they are on their way to building an investment portfolio.