Acorns Investment Company

Dec 26, 2015

Overall Rating

      Company (Vision Mission)

  Website and App Interface

  Customer Service

          Overall Experience

This is a review on the trending spare change financial investing for the middle-class society such as college kids and the blue or white collar working class. However, this spare change financial investing opportunity is not limited to such working class, but is specifically tailored to their income capacity. Basically, anyone can invest in this company who has a bank account and is 18 years of age or older. 

Who and What is Acorns?

Acorns is a financial investment company founded by Walter Cruttenden and  Jeff Cruttenden. Their main goal is to help people invest spare change on a per purchase basis and allocates these shares on the portfolio that was pre-selected for you. 

How Does Acorns Work?

Once you have registered and linked a checking/savings/credit account, it will take away a portion of a transaction made in that particular card on a rounding basis. For example, you have used Debit Card A to purchase coffee at $2.90, the remaining $0.10 will be withdrawn and placed in your Acorns Investment Account to round off that transaction to a whole number $3.00. If in case your purchase was an exact $3.00, then it will take away $1.00 to invest in your Acorns account. 

From this context, we can simply say that, for every transaction you make, Acorns will take away the rounded off portion and place it in your account. The more transactions you make on a linked card, the more you allocate in your Acorns account. 

So, how does the portfolio work?

The portfolio is pre-selected for you based on your income, age, etc. which is easily changeable later on after registration completion. There are 5 portfolios to choose from with a specific allocation of assets. From conservative to aggressive, each portfolio is unique in its investment allocation. Obviously, the riskiest would be the aggressive portfolio. The down part of this is that you can't actually select which ones you would like to allocate most on. The inability to allocate a specific percentage on a company of your choice is what makes it undesirable for me.

Moreover, the fees associated with having this account makes investing tricky. The $1 a month fee is almost 10% of my monthly investment which is pointless at all. I think I would be better off on a savings account that yields at the very least 0.01% annual percentage rate without the hassle of fees and the danger of possibly losing the money. Unless I am a tad wealthier and richer, I will consider investing. For now, Acorns is not my thing. 

I just recently closed my account with them and their customer service has been great and pleasant. My money was deposited back into my bank account. However, my login and Acorns account is still accessible. 

If you are on Acorns, how's your experience so far? I'd love to know how it's working out for you!


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