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Is Acorns a Scam? Is Acorns Safe and Legit in 2024?
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Is Acorns Safe?
If you're wondering about the safety of Acorns, you've come to the right place. Here's all the information you need:
Is Acorns Legitimate?
Acorns is regulated by both the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC), which are major U.S. regulatory bodies overseeing securities firms.
You can verify Acorns' credentials through its FINRA membership ID 168172 and SEC registration IDs: 8-69294 for brokerage services and 801-78602 for advisory services.
Acorns is registered across all 50 states and U.S. territories since 2013 for advisory services and 2014 for brokerage services.
Banking products through Acorns come from Lincoln Savings Bank and nbkc bank, which are governed by federal banking regulatory agencies.
Is Acorns Insured?
Investment accounts with Acorns are covered by the Securities Investor Protection Corporation (SIPC), which offers up to $500,000 in insurance per customer.
Bank accounts through Acorns are insured by the Federal Deposit Insurance Corporation (FDIC), providing up to $250,000 of coverage. This can be increased with specific account strategies like opening joint or retirement accounts.
Acorns Promotion
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Acorns Better Business Bureau Ratings
Acorns is rated by the Better Business Bureau (BBB), where it currently has a low customer review score based on a small number of reviews.
BBB also assesses companies based on criteria like business size, complaint resolution, and company longevity. Acorns has received a BBB rating of F.
Is Acorns Safe Verdict
Despite a low BBB rating from a few reviews, Acorns operates legitimately with robust insurance from FDIC and SIPC and strict regulatory oversight.
Acorns Website
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Acorns Review
With assurance that Acorns is secure and legitimate, we can now consider the specifics of its financial services.
Investing
Acorns provides automated trading primarily in a limited range of exchange-traded funds (ETFs) that include stocks and bonds. Exclusive options like ESG and bitcoin funds are also available. Below are some of the standard ETFs included in portfolios:
- iShares Core US Aggregate Bond Fund (AGG)
- Vanguard S&P 500 Fund (VOO)
- iShares Core MSCI Total International Stock Fund (IXUS)
An automated system selects the ETFs for each account, making Acorns a hands-off investment option. Some clients can add individual stocks to a portion of their portfolio.
Accounts are available in various tax structures, including individual taxable accounts, custodial accounts, and retirement accounts. Joint accounts are not available.
Banking
Acorns shines in cash management. Every investment account qualifies for an associated checking account with FDIC insurance and a metal debit card. This card can be used without fees at about 55,000 ATMs.
The card also supports round-ups for investing spare change and an Earn feature that increases investments when you shop with over 15,000 retailers. While there's no physical checkbook, digital checks are possible. Another notable feature is paycheck splitting, which automatically invests a portion of your direct deposit.
Acorns also offers an Emergency Fund account that currently pays a higher interest rate than the checking account, available only with higher-tier plans.
Pricing
Acorns charges a monthly subscription for its hybrid investing and banking services, with three tiers available:
Personal — $3 per month
Personal Plus — $5 per month
Premium — $9 per month
Higher interest rates for the Emergency Fund and other features like stock investing and expert Q&A sessions are limited to higher subscription levels. The Premium plan includes life insurance and accounts for children.
All plans include IRAs, taxable investment accounts, and checking accounts without additional percentage-based fees common in the industry.
Open Acorns Account
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Mobile App
The Acorns app centralizes operations and offers substantial educational resources (accessible via the Learning tab). The Earning section lets you browse offers that augment your investments when shopping at affiliated retailers.
Deals include:
H&R Block (up to 5% back)
Blue Apron ($40 back)
Adidas (5% back)
The app also promotes other Acorns services, such as roundups and financial milestones.
Website
The Acorns website mirrors the mobile app's functionalities, making features like the View Potential tool—which shows retirement progress—easier to navigate on a larger screen.
Additional Services
Extended Hours: No trades during extended hours in Acorns accounts.
Fractional-share Trading: Available in automated accounts.
IRA Service: Offers SEP, Roth, and Traditional IRAs.
Dividend Reinvestment Plan: Incorporates DRIP in its investment service.
Awards
Acorns Review Judgment
Despite a monthly fee, Acorns offers good value for large accounts with its range of services.
Find a Financial Advisor
If you are looking for a professional money management service in your area, you can
find a Financial Advisor on the Wiser Advisor
(or read
Wiser Advisor review).
Visit Wiser Advisor
Updated on 7/24/2024.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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