My Experience Testing Acorns in 2023: Full Review and Tips

Updated on: May 05, 2023

Author: Bennett Easton

Product Review Expert and Head Editor at Earn and Trade

Editor: Bradley Blumberg

Finance Expert and Financial Editor

As a personal finance enthusiast, I was intrigued by Acorns, a micro-investing app that rounds up your purchases and invests the change. I decided to test the app and share my experience in this full review of Acorns in 2023.

Acorns is a mobile app that helps you invest your spare change. When you sign up, you link your bank accounts and credit cards. Whenever you make a purchase, Acorns rounds up the transaction to the nearest dollar and invests the spare change in a diversified portfolio of low-cost ETFs (exchange-traded funds). You can also set up recurring investments and make one-time deposits.

How Does Acorns Work? Understanding the Features and Benefits

As a financial expert, I have found Acorns to be a great tool for those who struggle with saving and investing. Acorns works by rounding up your purchases to the nearest dollar and investing the difference in a portfolio of exchange-traded funds (ETFs). For example, if you spend $3.50 on a coffee, Acorns will round it up to $4.00 and invest the $0.50 difference. This spare change investing is a unique and easy way to get started in investing.

Acorns also offers a variety of features and benefits, such as automatic recurring investments, personalized portfolio options, and the ability to earn cashback rewards when you shop with their Found Money partners. Additionally, Acorns has a feature called “Acorns Later” which allows you to invest in a tax-advantaged retirement account such as a traditional or Roth IRA. Overall, Acorns is a great platform for those who are looking to get started with investing and saving for their future.

Signing up and Using Acorns

Signing up for Acorns is a quick and easy process that can be done in a matter of minutes. To get started, simply download the app and create an account. You’ll need to provide some basic information such as your name, email, and phone number, as well as link a funding source to transfer funds to your Acorns account.

Once you’ve signed up and linked your funding source, you can begin setting up your investment portfolio. Acorns offers a range of portfolio options based on your investment goals and risk tolerance. You can choose from a conservative, moderate, or aggressive portfolio, or a combination of all three. Acorns also offers a range of features such as round-ups, recurring investments, and Found Money, which allows you to earn cash back when you shop with Acorns’ partner brands. With these features and the ease of use, signing up for Acorns is a great way to get started with investing.

Acorns Investment Strategies: Exploring the Different Portfolio Options

Acorns offers several investment strategies for users to choose from, each designed to suit different risk levels and investment goals. The options range from conservative portfolios that prioritize stability and income to aggressive portfolios that prioritize growth potential. Depending on your risk tolerance and investment goals, you can choose the strategy that best suits your needs. Some of the factors that can influence your decision include your age, income level, investment horizon, and overall financial situation.

One of the benefits of Acorns is the ease with which you can switch between different investment strategies. If you find that your financial situation or investment goals have changed, you can easily adjust your portfolio to reflect those changes. Additionally, Acorns offers a feature called “Found Money,” which allows you to earn cash back when you shop with partner brands. The cash back rewards can be automatically invested into your portfolio, further increasing your potential returns. By exploring the different portfolio options and utilizing the features that Acorns offers, you can make informed investment decisions that align with your financial goals.

Acorns Fees and Pricing: What You Need to Know Before You Invest

it’s important to consider the fees and pricing of any investment platform. Acorns is no exception, and understanding its fee structure can help you make informed decisions about whether it’s the right investment platform for you. Acorns charges a monthly fee based on the level of service you choose, which ranges from $1 to $5 per month. The fee includes investment management, account monitoring, and access to educational content. There are also additional fees for certain services, such as $25 for a non-sufficient funds (NSF) fee or $75 for a transfer out fee.

It’s important to note that while Acorns’ fees may seem small, they can add up over time and impact your overall returns. As such, it’s essential to carefully consider the fees and pricing before deciding to invest with Acorns. You may also want to compare Acorns’ fees to other investment platforms to ensure you’re getting the best value for your money. Ultimately, investing with Acorns can be a smart choice for those who value ease of use and accessibility, but it’s important to carefully evaluate the fees and pricing to ensure it aligns with your investment goals.

Tips for Using Acorns

Based on my experience testing Acorns, here are some tips for anyone who is interested in using the app:

Start small: If you’re new to investing, it’s okay to start with just the round-up feature and gradually increase your investments over time. You don’t have to invest a lot of money upfront.
Monitor your portfolio regularly: While Acorns takes care of the asset allocation and rebalancing, it’s still important to check in on your portfolio periodically to see how it’s performing. This can help you make any necessary adjustments and stay on track with your investment goals.
Do your research: While Acorns is a user-friendly app, it’s still essential to do your own research and make sure that it’s the right investment option for you. Take some time to learn more about investing and the different types of portfolios that are available.
Consider the fees: Acorns’ fees are relatively low, but they do cut into your returns. Be sure to factor them into your decision.
Stay disciplined: Investing is a long-term game. Stay disciplined and committed to your investment plan, and you’ll be more likely to achieve your financial goals.

Acorns vs. Other Investing Apps: Comparing Costs and Features

When it comes to investing apps, there are many options available, each with its own unique features and pricing structure. I will compare Acorns to some of the other popular investing apps to help you understand the differences and determine which one may be right for you.

First, let’s compare Acorns to Robinhood. While both apps allow you to invest in stocks and ETFs, Acorns also offers automated portfolio management, which Robinhood does not. However, Robinhood does not charge a monthly fee, while Acorns charges a small monthly fee for its services.

Another popular investing app is Stash. Like Acorns, Stash offers automated portfolio management and a wide range of investment options. However, Stash has a tiered pricing structure based on the level of service you choose, while Acorns charges a flat monthly fee regardless of the size of your portfolio. Additionally, Stash offers a debit card with cashback rewards, which Acorns does not currently offer.

Finally, let’s look at Betterment, another popular investing app. Betterment offers a variety of investment options and personalized financial advice. While Betterment charges a higher fee than Acorns, it also offers tax-loss harvesting and other advanced features that may be worth the extra cost for some investors. Ultimately, the best investing app for you will depend on your individual financial goals and preferences.

Conclusion: Should you Sign Up for the Acorns App?

My experience testing Acorns in 2023 has been positive. The app is user-friendly, and the round-up feature is an easy way to invest your spare change. Acorns offers different portfolio options, and the asset allocation is automated, which makes it easy for beginners to start investing.

However, it’s essential to factor in the fees and monitor your portfolio regularly. It’s also crucial to do your research and make sure that Acorns is the right investment option for you.

Overall, Acorns is a great way to start investing for beginners, and it’s worth considering for anyone who wants to dip their toes into the world of investing. With a little discipline and commitment, you can use Acorns to help achieve your long-term financial goals.

Acorns FAQ

What are the best investment strategies for maximizing returns with Acorns?

Acorns is a popular investment app, and if you’re looking to get the most out of it, you may be wondering what the best investment strategies are. One effective approach is to focus on long-term goals and consistently investing a set amount each month. Another strategy is to diversify your portfolio and select a mix of conservative and aggressive investment options. Additionally, taking advantage of Acorns’ automated features, such as the round-up feature and recurring investments, can help you consistently grow your savings over time. It’s important to remember that every investor’s situation is unique, so it’s best to consult with a financial advisor to develop an investment strategy tailored to your needs.

What are the best features of Acorns that make it stand out compared to other investment apps?

Acorns is an investment app that offers several features that make it stand out from other apps. Some of the best features of Acorns include its round-up feature that invests your spare change automatically, personalized portfolios based on your investment goals, and a user-friendly interface that makes it easy to manage your investments. Additionally, Acorns offers an educational component that helps users learn about investing and make informed decisions about their finances.

What are the best ways to minimize fees and expenses when using Acorns?

To minimize fees and expenses when using Acorns, the best approach is to select the right account level for your investment goals and needs. Acorns offers several account options, each with its own fees and features, so it’s important to compare them carefully. Additionally, regularly reviewing your portfolio and making strategic adjustments can also help minimize fees and maximize your returns over time. Other ways to minimize fees include using cashback rewards and referral bonuses to offset fees, as well as avoiding early withdrawal penalties by holding investments for the long term.

What are the best practices for setting financial goals and creating an investment portfolio with Acorns?

Acorns is a popular investment app that can help users achieve their financial goals. To create a successful investment portfolio with Acorns, it’s essential to set clear financial goals and consider the best practices for doing so. This might include identifying your risk tolerance, selecting a diversified portfolio that aligns with your goals, and regularly monitoring and adjusting your investments as needed to maximize returns. Additionally, it’s important to minimize fees and expenses to keep more of your investment returns.

What are the best security measures in place to protect my investments and personal information on Acorns?

Acorns takes security seriously and has implemented several measures to protect user investments and personal information. Some of the best security features include 256-bit encryption, biometric login, and automatic fraud protection. Additionally, Acorns partners with industry-leading security firms to ensure that user data is kept safe and secure at all times.

Meet Our Experts

Author: Bennett Easton

Product Review Expert and University of California, Berkeley graduate who received a Bachelor's Degree in Communications. Bennett Easton is our Head Editor at Earn and Trade.

Editor: Bradley Blumberg

Finance Expert and Former Citi Group Vice President of Business Banking and Dartmouth College graduate with a degree in Economics and Journalism. Bradley Blumberg is our Financial Editor at Earn and Trade.