Acorns is one of the most popular micro-investing apps on the market, promising a simple and automated way to grow your wealth with minimal effort. But is it really worth it in 2025? In this Acorns Investment App review, we’ll dive into its features, fees, pros and cons, and whether it’s a good investment platform for beginners and seasoned investors alike.
What Is the Acorns Investment App?
Acorns is an investing app designed for people who want to start investing but may not have the knowledge, discipline, or time to manage a traditional investment portfolio. It automatically invests your spare change from everyday purchases, helping you build your portfolio effortlessly.
The app offers different tiers of services, including:
- Acorns Personal ($3/month) – Automated investing, retirement savings (Acorns Later), and banking services.
- Acorns Family ($5/month) – Everything in the Personal plan plus investment accounts for kids.
- Acorns Premium ($9/month) – Includes custom portfolios, priority support, and additional financial tools.
Now, let’s explore whether Acorns is a legit investment app or just another subscription-based fintech tool with hidden downsides.
How Does Acorns Work?
Acorns makes investing simple through a few key features:
1. Round-Ups – Invest Spare Change
One of Acorns’ most unique features is Round-Ups, which rounds up your purchases to the nearest dollar and invests the difference.
For example:
- You buy a coffee for $4.80 → Acorns rounds it up to $5.00 and invests the $0.20.
- Over time, these small contributions add up, building your portfolio without requiring large deposits.
2. Recurring Investments
Acorns allows you to set up automatic investments daily, weekly, or monthly, making it a great option for those looking to be consistent in growing their wealth.
3. Found Money – Get Cash Back on Purchases
Acorns partners with popular brands like Walmart, Nike, Apple, and Airbnb, offering cash-back rewards that go directly into your investment account. This feature acts like a rewards program, helping users invest more without extra effort.
4. Automated Portfolio Management
Acorns uses a robo-advisor to manage your investments, meaning your money is automatically diversified across different asset classes such as stocks and bonds based on your risk tolerance.
5. Acorns Assist – A Hidden $1 Plan
Most users don’t know this, but if you try to cancel your Acorns account, you’ll be offered a $1/month plan called Acorns Assist. This is a great way to keep your investments growing at a lower cost if the standard plans seem too expensive.
Acorns Fees – Is It Worth the Cost?
One of the biggest criticisms of Acorns is its monthly subscription fee. Unlike many traditional brokerage accounts that offer free investing, Acorns charges:
- $3 per month for the basic investing plan
- $5 per month for the family plan
- $9 per month for premium services
At first glance, these fees seem low. However, for small account balances, they can add up quickly.
For example:
- If you only have $100 in your Acorns account, a $3 monthly fee is effectively a 3% loss per month (or 36% per year!).
- If you have $1,000 invested, a $3 monthly fee is a 0.3% annual cost, which is much more reasonable.
This means Acorns is best suited for users who consistently contribute and grow their account over time.
Acorns vs. Other Investment Apps
If you’re considering Acorns, you might also be looking at alternatives like Robinhood, Fidelity, or Betterment. Here’s how they compare:
| Feature | Acorns | Robinhood | Fidelity | Betterment |
|---|---|---|---|---|
| Best For | Beginners, passive investors | Stock traders | Long-term investors | Automated investing |
| Fees | $3-$9/month | $0 commissions | $0 for basic accounts | 0.25% annual fee |
| Investment Type | ETFs, automated investing | Stocks, crypto, options | Stocks, bonds, ETFs | ETFs, managed portfolios |
| Cash Back Rewards | ✅ Yes | ❌ No | ❌ No | ❌ No |
| Retirement Accounts | ✅ Yes (Acorns Later) | ✅ Yes | ✅ Yes | ✅ Yes |
| Round-Up Feature | ✅ Yes | ❌ No | ❌ No | ❌ No |
Verdict:
- Acorns is ideal for new investors who want hands-off investing with spare change.
- Robinhood is better for stock traders looking for commission-free investing.
- Fidelity is great for serious investors looking for low-cost index funds.
- Betterment is good for long-term, automated investing with goal-based strategies.
Who Should Use Acorns?
✅ Best for:
✔️ Beginners who want a hands-off investing approach
✔️ People who struggle with saving money
✔️ Users who frequently shop online and can benefit from Found Money rewards
✔️ Long-term investors looking for slow, steady growth
❌ Not ideal for:
❌ Advanced investors who want control over stock selection
❌ People with low balances (high fees can eat into small investments)
❌ Users who prefer free investment platforms like Fidelity or M1 Finance
Is Acorns Safe and Legit?
Yes, Acorns is 100% legit and regulated by the SEC (Securities and Exchange Commission). It is also FDIC-insured for banking features and SIPC-insured for investment accounts (up to $500,000).
Your money is invested in ETFs (exchange-traded funds), which are diversified and managed by industry-leading firms like Vanguard and BlackRock.
Final Verdict: Is Acorns Worth It in 2025?
Acorns is a great investment app for beginners who want an easy, automated way to start investing. Its Round-Up feature and Found Money rewards make it unique, and it’s especially useful for those who struggle with manual investing.
However, the monthly fee can be costly for small balances, and there are free alternatives like Fidelity that offer similar benefits without the cost.
Should you use Acorns?
✔️ If you’re just getting started and need an automated way to invest, Acorns is a solid choice.
❌ If you’re comfortable managing your own investments, consider free platforms like Fidelity or Vanguard.
At the end of the day, the most important thing is to start investing, no matter what platform you use. If Acorns helps you do that, then it’s worth it.
