Saving and investing can feel overwhelming, but Acorns makes it simple by turning spare change into investments. The app automatically rounds up purchases and invests the difference, helping people grow their money with minimal effort.
Acorns has expanded its services over the years, offering automated investing, retirement accounts, and cash-back rewards. It’s designed for people who want a hands-off way to build their savings, but it’s not the best fit for everyone.
This review covers everything Acorns offers, how it works, what it costs, and whether it’s worth using in 2025.
What is Acorns?
Acorns is an automated financial platform that helps people save and invest without needing a large upfront deposit. Launched in 2014, it started as a simple spare change investing app and has since expanded into a full-service financial tool with investment accounts, retirement savings, banking, and cash-back rewards.
Acorns’ core features include:
- Acorns Invest – An automated investing account that rounds up purchases and invests the spare change in diversified portfolios.
- Acorns Later – A retirement savings option that offers Traditional, Roth, and SEP IRAs with automated contributions.
- Acorns Early – Custodial investment accounts for parents who want to start saving for their children’s future.
- Acorns Checking – A checking account with no overdraft fees, early direct deposit, and fee-free ATM access.
- Acorns Earn – A rewards program that offers cash-back bonuses from partner brands, which are automatically invested.
The platform is built for people who want a simple, hands-off way to start investing. Instead of requiring in-depth financial knowledge or large contributions, Acorns uses automation to make investing easy.
How does Acorns work?
Acorns makes saving and investing effortless by rounding up everyday purchases and automatically investing the spare change. When a linked debit or credit card is used, Acorns rounds the total to the next dollar and invests the difference. For example, if you spend $4.57 on coffee, Acorns rounds it to $5.00 and invests the extra $0.43. Over time, these small contributions add up.
Beyond round-ups, Acorns offers additional tools to help users build savings:
- Recurring Deposits – Users can set up automatic investments starting at $5 per day, week, or month.
- Acorns Checking – A checking account with no overdraft fees, early direct deposit, and access to 55,000+ fee-free ATMs. This account integrates with Acorns Invest, making it easy to manage spending and investing in one place.
- Acorns Earn – A rewards program that deposits cash-back bonuses directly into investment accounts when users shop with partner brands.
Minimum Investment
Acorns requires a minimum balance of $5 to start investing. Users can also set up recurring contributions to grow their portfolio more quickly.
Acorns Invest
Acorns Invest is the platform’s core feature, using round-ups and direct deposits to build an investment portfolio. Funds are invested in exchange-traded funds (ETFs) that include a mix of stocks and bonds. Acorns automatically rebalances portfolios based on market conditions.
Acorns Later
Acorns Later offers individual retirement accounts (IRAs), helping users save for the future. Based on your financial situation, Acorns recommends a Traditional, Roth, or SEP IRA, with automatic contributions starting at $5.
Acorns Early
Acorns Early allows parents to open UTMA/UGMA accounts for their children. These accounts can be used for future expenses like education or housing, and investments grow tax-advantaged.
Acorns Earn
Acorns Earn rewards users for shopping with select brands, adding cash-back bonuses directly to their investment accounts. Partners have included retailers like Chevron, Sam’s Club, and Walmart.
Pricing & Fees
Acorns offers three membership tiers:
- Acorns Personal ($3/month) – Includes Invest, Later, Earn, and Checking.
- Acorns Personal Plus ($5/month) – Adds financial planning tools.
- Acorns Premium ($9/month) – Includes everything, plus live Q&A support and additional perks.
There are no additional trading fees, but the monthly charge can be high for users with small balances.
Acorns Investing Strategy
Acorns automatically invests money in exchange-traded funds (ETFs) based on a user’s risk tolerance. When signing up, users answer a few questions about their income, net worth, and investment goals. Acorns then recommends a portfolio that matches their financial situation.
Acorns Portfolio Options
Acorns offers five investment portfolios, ranging from low risk to high risk:
- Conservative – Mostly bonds, minimal stock exposure.
- Moderately Conservative – A mix of bonds and large-company stocks.
- Moderate – Balanced mix of stocks and bonds.
- Moderately Aggressive – More stock exposure, including small-company and international stocks.
- Aggressive – Primarily stocks, including emerging markets and real estate.
Investment Approach
Acorns portfolios are made up of ETFs from Vanguard and BlackRock, including:
- Corporate bonds
- Government bonds
- Large-company stocks
- Small-company stocks
- International stocks
- Emerging markets
- Real estate
Acorns automatically rebalances portfolios over time to keep investments aligned with market conditions. Users can also fund their accounts directly from a linked bank account or set up recurring investments as low as $5 per deposit.
Why Acorns Appeals to Many Investors
Acorns has grown into one of the most popular robo-advisors, offering a simple way to invest without needing large sums of money or in-depth market knowledge. The platform is designed for hands-off investors who want a low-effort way to build savings over time.
Diversified Investment Portfolios
Acorns automatically invests money in exchange-traded funds (ETFs) from leading providers like Vanguard and BlackRock. These portfolios include:
- Large and small company stocks
- International stocks
- Bonds and government securities
- Real estate and emerging markets
This mix helps spread out risk and create a balanced investment approach.
No Large Up-Front Investment
Unlike many investment platforms that require hundreds or thousands of dollars to start, Acorns lets users begin with as little as $5. Since it works by rounding up small transactions, it’s an easy way to start investing without making big financial commitments.
Automated Investing
Acorns takes care of everything automatically. It rounds up purchases, invests in a portfolio that matches your risk level, and rebalances your investments as needed. This makes it a good choice for beginners or anyone who doesn’t want to actively manage their investments.
Low Monthly Fees
Acorns charges a flat monthly fee instead of taking a percentage of assets under management (AUM), which is common with traditional robo-advisors. Current pricing includes:
- $3/month – Acorns Personal (Invest, Later, and Earn).
- $5/month – Acorns Personal Plus (adds financial planning tools).
- $9/month – Acorns Premium (includes live Q&A support and extras).
There are no hidden fees for trading or withdrawals, but the monthly charge can be high for users investing small amounts.
Cash-Back Investing with Acorns Earn
Acorns users can earn bonus investments by shopping with select retailers through Acorns Earn. The platform partners with popular brands, offering cash-back rewards that go directly into your investment account.
Educational Content for Beginners
Acorns provides easy-to-read educational content covering saving, investing, and personal finance. This helps users build financial knowledge while growing their investments.
Built for Consistent Growth
Since Acorns rounds up purchases and invests automatically, users consistently add to their portfolio over time. This approach makes it easier to stay on track without needing to manually transfer money or make big investment decisions.
Where Acorns Falls Short
Acorns is a convenient investing tool, but it has limitations that may not make it the best fit for everyone. Here are some drawbacks to consider.
Investing Small Amounts Can Limit Growth
Acorns primarily invests spare change, which means it takes time to see meaningful returns. If you’re only investing through round-ups and not adding additional deposits, the growth potential is limited.
Flat Fees Can Eat Into Small Balances
Unlike some robo-advisors that charge a percentage of assets under management (AUM), Acorns uses a flat monthly fee structure. While $3 to $9 per month may seem low, it’s relatively high for small accounts. If you’re only investing a few dollars at a time, fees could cancel out any gains.
No Tax-Loss Harvesting
Many robo-advisors offer tax-loss harvesting, a feature that helps minimize capital gains taxes by selling underperforming assets. Acorns does not offer this, which could make it less attractive for taxable investment accounts.
No Access to Human Advisors
Acorns is fully automated, meaning there are no financial advisors available for personalized guidance. If you prefer to have expert input on your investments, platforms like Betterment or Wealthfront may be a better fit.
Investments Carry Risk
Like any investment platform, Acorns is subject to market fluctuations. Since users are often investing small amounts, losses can feel more significant compared to the limited gains from spare change investing.
How Acorns Earn Works
Acorns Earn is a cash-back rewards program that allows users to earn bonus investments by shopping with partner brands. Instead of traditional cash-back, these rewards are automatically invested into your Acorns account.
Earning Through Shopping
Acorns partners with various retailers that offer cash-back when users shop through the Acorns app. The list of participating brands changes frequently, but past partners have included Chevron, Sam’s Club, Nike, Walmart, and Macy’s.
Unlike older versions of the program, users no longer need a Chrome extension to activate rewards. Cash-back is applied when users shop through Acorns Earn within the app or on the website.
Earning Through Job Listings
Acorns also provides access to job postings for side gigs and full-time remote work. The platform highlights opportunities that can help users boost their income and increase their investing potential.
Payout Timeline
Cash-back earnings from Acorns Earn are deposited into investment accounts within 60 to 120 days, depending on the retailer’s payout schedule.
Is Acorns the right fit for you?
Acorns is a good option for people who want a simple, automated way to start investing without needing a large upfront deposit. It works well for those who:
- Struggle to save and want a set-it-and-forget-it approach.
- Are new to investing and prefer a beginner-friendly platform with educational resources.
- Want an automated system that invests spare change and recurring deposits without manual effort.
However, Acorns may not be the best choice for experienced investors or those looking for more control over their investments. The platform lacks advanced features like tax-loss harvesting and personalized financial advice, which can limit its usefulness for high-net-worth investors.
Getting Started with Acorns
Signing up for Acorns is quick and straightforward. The process takes just a few minutes, and once your account is set up, you can start investing right away.
Steps to Create an Acorns Account
- Download the Acorns app on an Android or iOS device, or visit the Acorns website on a desktop browser.
- Create an account by entering your email address and setting up a secure password.
- Link a bank account to enable round-ups and direct deposits. Acorns allows multiple bank connections, but only one can be active at a time.
- Enter personal details, including your name, address, phone number, date of birth, Social Security number, and employment status. This helps Acorns tailor your investment recommendations.
- Select an investment portfolio based on your financial goals and risk tolerance. Acorns will suggest one for you, but you can adjust it if needed.
- Explore the platform to set up round-ups, recurring deposits, and additional features.
Once your account is active, Acorns will begin investing your spare change and any scheduled contributions automatically and start investing.
Other Investing Apps to Consider
Acorns is a solid choice for hands-off investing, but it’s not the only option. Depending on your needs, another platform may offer better features or lower costs.
Robinhood
Robinhood is ideal for those who want to trade stocks, ETFs, and cryptocurrency without paying commission fees. Unlike Acorns, it allows users to buy and sell individual stocks instead of only investing in pre-built portfolios. Robinhood is better suited for investors who want more control over their trades. Here’s our full Robinhood review.
Stash
Stash offers a mix of automated investing and self-directed stock purchases. Like Acorns, it allows users to invest small amounts, but it provides more flexibility by letting users pick individual stocks and ETFs. Stash also offers a debit card with cash-back rewards that can be invested.
Betterment
Betterment is a robo-advisor like Acorns, but it offers more advanced features, including tax-loss harvesting and access to human financial advisors. It’s a strong alternative for those who want automated investing with additional tax benefits and professional guidance.
Each of these platforms has its own advantages, so choosing the right one depends on whether you prefer automation, control, or tax-saving strategies.
Final Thoughts
Acorns makes investing simple by turning spare change into a growing portfolio. It’s a great choice for beginners or anyone who wants an automated way to save and invest without needing to manage the details.
The platform’s round-up feature, automated portfolios, and cash-back rewards make it easy to build wealth over time. However, its flat monthly fees can be high for small accounts, and it lacks advanced features like tax-loss harvesting and access to financial advisors.
For those who want a hands-off approach to investing, Acorns is a strong option. But if you’re looking for more control, lower fees, or personalized advice, other platforms may be a better fit.
