Is Acorns Safe?
If you're worried about how secure Acorns is, you've come to the right place. We have put together everything you need, and here are the facts:
Is Acorns Legitimate?
Acorns' investment branch is supervised by the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC). These two agencies oversee securities in America. They closely watch brokers like Acorns and issue penalties if rules are broken (or at least, they should).
Acorns’ FINRA membership ID is 168172 for its broker-dealer status. It also holds an investment-advisory registration with an ID of 165926. The firm’s SEC ID is 8-69294 for brokerage, and its investment-advisory ID is 801-78602.
Acorns is registered in every U.S. state and territory. It has been on file since 2013 (for advisory services) and 2014 (for brokerage).
Acorns works with Lincoln Savings Bank and nbkc bank for its banking services. Both are overseen by multiple federal banking regulators.
Is Acorns Insured?
Acorns investment accounts are covered by the Securities Investor Protection Corporation (SIPC).
This organization offers $500,000 in coverage for each separate capacity, which generally means each client (not each account).
Acorns bank accounts are
covered by the Federal Deposit Insurance Corporation (FDIC). This federal agency provides $250,000 of insurance on cash balances. Like SIPC coverage, you can boost this amount in various ways, like opening joint or retirement accounts.
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Acorns Better Business Bureau Ratings
Beyond insurance and rules, there are consumer groups that assess how
companies operate. One of these is the Better Business Bureau (BBB). This group has a
profile for Acorns with an average user rating of 1 out of 5. Although this score is low, there are just 12 reviews.
In addition to gathering customer feedback, the BBB also evaluates how a business is run. In determining this rating, the BBB looks at factors like the company's size, how it addresses client complaints, and how long it has been operating. On Acorns' BBB profile, we found an F grade, the worst score possible.
Is Acorns Safe Verdict
Even though Acorns has a very poor score from the BBB (based on a tiny number of reviews),
it is a safe company. Acorns accounts carry FDIC and SIPC insurance, and there
are multiple regulators overseeing the business.
Acorns Review
Now that we've confirmed Acorns is not a scam, let's examine the specifics of its financial services.
Investing
Acorns provides automated trading in a limited range of ETFs holding stocks and bonds. For most clients, there aren't other investment types, although ESG and bitcoin funds are options. Here are a few typical ETFs found in its portfolios:
- iShares Core US Aggregate Bond Fund (AGG)
- Vanguard S&P 500 Fund (VOO)
- iShares Core MSCI Total International Stock Fund (IXUS)
A computer algorithm determines which ETFs each account holds, making this a very hands-off broker. Some clients, but not all, can include individual stocks in a sub-account that makes up to 30% of their entire portfolio.
Automated (robo) accounts, like any other, need a tax designation. Acorns provides individual taxable accounts, custodial accounts, and retirement accounts. It does not have other account types, such as joint accounts.
Banking
While the investment side can seem limited, Acorns excels in cash management. Every investing account can add a linked checking account with FDIC insurance and a metal debit card. This card can be used without fees at an ATM network of around 55,000 machines.
Acorns also provides a roundup feature with the card that invests leftover change into the
connected automated account. And
Acorns Earn lets you gain bonus investments by shopping with over 15,000 partnered stores.
Although Acorns' cash account doesn't come with paper checks, it does have digital checks. A
useful feature is paycheck splitting, which directs part of a direct deposit into the linked investing account.
While the checking account is noteworthy, Acorns has more to offer. It also provides a feature called
the Emergency Fund, which is essentially a savings account with a higher interest rate. Currently, that rate is
4.04% APY
compared to the checking account’s 2.47%, for certain customers.
Pricing
You may have noticed we keep mentioning certain customers. Acorns has a key requirement: a monthly fee to use its combined investing and banking services. There are three subscription tiers:
Personal — $3 per month
Personal Plus — $5 per month
Premium — $9 per month
The checking and savings rates mentioned earlier apply solely to Premium and Personal Plus plans, and that includes the Emergency Fund. The Premium option is the only one allowing stock investing in a sub-account.
All three tiers include IRAs, taxable investment accounts, and checking. There is no extra annual fee for the robo service, which is different from many competitors.
Premium and Personal Plus members receive Acorns matches of up to 50% on their bonus investments via Acorns Earn. They also have access to live Q&A sessions with financial experts.
Premium users receive life insurance and a free will. They can also open accounts for kids (custodial investing and a kid-friendly debit card) under the Premium tier.
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Mobile App
The Acorns mobile app is where everything happens, and there's not a lot happening, since this is mostly a robo service. Still, the app includes some helpful functions. While exploring it, we discovered a lot of educational resources (tap the Learning tab at the bottom). There is also a section called Earning, where you can scroll through different offers that give bonus investments for shopping with certain businesses. Below are some examples we came across:
H&R Block (up to 5% back)
Blue Apron ($40 back)
Adidas (5% back)
Throughout the app, there are many ads for other Acorns services. We noticed tiles for roundups, child features, and milestones to track an account's financial progress at Acorns.
Website
The Acorns website largely mirrors what's on the mobile app and has the same menu options. One feature on both that's a bit simpler to use on the website is the View Potential tool. It shows, in chart form, if an account is on pace for retirement based on recurring contributions.
Additional Services
Extended Hours: Orders in Acorns' robo accounts occur during normal market hours.
Fractional-share Trading: Acorns utilizes fractional shares in its automated accounts.
IRA Service: SEP, Roth, and Traditional IRAs are offered at Acorns with any of its monthly plans.
Dividend Reinvestment Plan: Acorns uses a DRIP in its investing features.
Awards
Acorns Review Judgment
Even with the flat monthly fee, big accounts can still find good value at Acorns.
Updated on 2/23/2025.
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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