The S&P 500 has returned over 40% in the past two years. Meanwhile, you’ve been meaning to start investing but haven’t. Every financial influencer tells you to “just open a brokerage account,” but which one? How much do you need? What do you actually buy?
Acorns bets that for millions of people, the answer to “why haven’t you started investing?” isn’t lack of money—it’s decision paralysis. Their solution: eliminate the decisions entirely.
Here’s the verdict: Acorns is worth the $3-12/month for beginners who genuinely struggle to save and invest. The Round-Ups feature turns your spending into investing without requiring willpower. But the flat fee structure means Acorns becomes expensive relative to free alternatives once you’ve built the habit and grown your balance. Think of it as training wheels: invaluable when you need them, but eventually you graduate.
Quick Answer: Is Acorns Worth It?
Yes, for a specific person. If you’ve been meaning to invest for years but haven’t, Acorns removes every barrier. $5 minimum. No decisions about what to buy. Automatic investing from your spare change. For the person who won’t invest otherwise, the $3/month fee is irrelevant compared to the cost of not investing at all.
No, for everyone else. If you already have good saving habits or $10,000+ to invest, free platforms like Robinhood or Fidelity Investments offer the same diversified portfolios without the monthly fee. The math doesn’t work once you’re past the beginner stage. For a detailed comparison of beginner-friendly platforms, see our guide to the best stock research websites.
| Verdict | Rating | Best For |
|---|---|---|
| Worth it—conditionally | 3.7/5 | Beginners who struggle to start investing and need automation to build the habit |
What Acorns Actually Does
Acorns isn’t a stock-picking service or a trading platform. It’s a behavior-change tool disguised as an investment app.
The core feature—Round-Ups—links to your debit or credit cards and rounds every purchase up to the nearest dollar. Buy a $3.50 coffee, and $0.50 gets set aside. Once you hit $5, that spare change automatically invests into a diversified ETF portfolio.
You never decide what to buy. You never time the market. You never think about it at all.
What you get with Acorns:
- Acorns Invest: Taxable brokerage account with pre-built ETF portfolios (Vanguard, iShares)
- Acorns Later: IRA retirement accounts (Traditional, Roth, SEP) with up to 3% matching on Gold tier
- Acorns Checking: FDIC-insured checking account with metal debit card and 55,000+ fee-free ATMs
- Acorns Emergency Savings: High-yield savings at 3.59% APY
- Acorns Early: Kids’ investment accounts and debit cards (ages 6-18)
- Acorns Earn: Cashback from 450+ brands invested automatically
The platform has helped invest over $20 billion, with $4 billion of that coming from spare change alone. That’s a lot of people who wouldn’t have invested otherwise.
How the Portfolios Work
Acorns doesn’t let you pick individual stocks (unless you upgrade to Gold tier’s Custom Portfolios). Instead, you choose a risk level—conservative to aggressive—and they build your portfolio from low-cost ETFs.
The ETF lineup includes:
- VOO (Vanguard S&P 500) for large-cap U.S. stocks
- IJH/IJR (iShares Mid/Small Cap) for diversification
- IXUS (iShares International) for global exposure
- AGG (iShares Aggregate Bond) for stability
- BITO (ProShares Bitcoin Strategy) for up to 5% crypto allocation if you want it
These are the same funds sophisticated investors use. Acorns just removes the decision of how to combine them. The portfolios automatically rebalance and reinvest dividends.
The Bottom Line: You’re not getting inferior investments. You’re getting automated access to institutional-quality ETFs—the “cost” is the monthly subscription, not worse returns.
The Real Cost: Acorns Pricing Breakdown
Here’s where Acorns gets controversial. The flat monthly fee structure is brilliant for Acorns and potentially expensive for you—depending on your balance.
| Tier | Monthly Cost | Annual Cost | Key Features |
|---|---|---|---|
| Bronze | $3 | $36 | Invest + Later IRA + Round-Ups + Earn rewards |
| Silver | $6 | $72 | + Checking + 3.59% APY savings + 1% IRA match |
| Gold | $12 | $144 | + Kids accounts + 3% IRA match + Custom Portfolios |
The math that matters:
| Your Balance | Bronze Fee ($36/yr) | Equivalent AUM Fee |
|---|---|---|
| $500 | 7.2% | Brutal |
| $1,000 | 3.6% | Expensive |
| $5,000 | 0.72% | Reasonable |
| $10,000 | 0.36% | Competitive |
| $25,000 | 0.14% | Cheap |
Compare this to Betterment at 0.25% AUM (no minimum) or Robinhood at $0. The smaller your balance, the more Acorns costs you in percentage terms. We compare these options in detail in our Betterment review.
But here’s the counterargument: If Acorns gets you to invest $5,000 when you otherwise would have invested $0, the “expensive” fee saved you from something far more costly—not investing at all.
The Hidden Value: IRA Matching
Most people overlook this: Acorns Gold offers a 3% match on IRA contributions for the first year. Silver offers 1%.
If you contribute $7,000 to your IRA (the current limit for those under 50), that’s $210 in free money on Gold tier. Subtract the $144 annual fee, and you’re still $66 ahead—plus you get the investing, banking, and kids’ features.
The catch: contributions must stay in your Later account for 4 years to keep the match. Leave early, and you forfeit it.
Pro Tip: If you’re opening an IRA anyway, the Gold tier’s 3% match can make the higher subscription fee worth it—but only if you’ll actually max out contributions.
Who Acorns Is Actually For
Acorns works for you if:
- You’ve been meaning to invest for years but haven’t started
- You struggle to save money consistently
- You want a “set it and forget it” approach with zero decisions
- You’re starting with small amounts ($5-$500)
- You want banking, investing, and retirement in one app
- You have kids and want to teach them about money
Acorns doesn’t work for you if:
- You already have $10,000+ to invest (use free platforms)
- You want to pick individual stocks (use Robinhood or Fidelity Investments)
- You’re already a disciplined saver (you don’t need the automation)
- You want tax-loss harvesting (Acorns doesn’t offer it)
- You’re fee-sensitive and will obsess over the monthly cost
The honest truth: Acorns is a stepping stone. It’s designed to get you started, not to be your forever platform. The fee structure actually incentivizes this—as your balance grows, the percentage cost drops, but eventually you’ll realize you could pay nothing elsewhere.
The Trade-Offs: Pros and Cons
What Works
✓ Removes every barrier to starting. $5 minimum. No decisions. Automatic everything.
✓ Round-Ups are genuinely clever. Turning spending into investing without willpower is powerful psychology.
✓ All-in-one simplicity. Investing, banking, retirement, kids—one app, one subscription.
✓ Quality underlying investments. Vanguard and iShares ETFs are what professionals use.
✓ 3.59% APY on savings. Competitive high-yield savings rate (Silver/Gold tiers).
What Doesn’t
✗ Expensive at small balances. The flat fee structure punishes small accounts.
✗ No tax-loss harvesting. Betterment and Wealthfront offer this; Acorns doesn’t.
✗ Limited control. Pre-built portfolios only (until Gold tier’s Custom Portfolios).
✗ You’ll eventually outgrow it. The value proposition weakens as your balance grows.
✗ 4-year IRA match vesting. Leave early, lose the match.
Best Alternatives to Acorns
If Acorns isn’t right for you, here’s where to look:
For Free Automated Investing: M1 Finance
M1 Finance offers the same automated, set-it-and-forget-it investing with zero fees. You can build custom “pies” of ETFs or use their expert portfolios. The catch: no Round-Ups feature and no integrated banking. See our M1 Finance review for the full breakdown.
Switch to M1 if: You want automation without paying monthly fees.
For Full Control: Robinhood or Fidelity
Robinhood and Fidelity Investments let you buy the same ETFs Acorns uses—for free. You’ll need to make your own decisions about what to buy and when, but you pay nothing. Check our Robinhood review for the full feature breakdown.
Switch to these if: You’re ready to take the training wheels off.
For Sophisticated Automation: Betterment
Betterment charges 0.25% of assets under management (no monthly fee). That’s cheaper than Acorns at balances under $14,400/year. Betterment also offers tax-loss harvesting, which can offset the fee through tax savings. See our Betterment review for the complete analysis.
Switch to Betterment if: You have $5,000+ and want more sophisticated features.
Final Verdict: Should You Use Acorns?
Acorns solves a real problem: most people know they should invest but don’t. The friction of choosing a broker, deciding what to buy, and remembering to contribute stops them cold.
For $3/month, Acorns eliminates all of that. You link your cards, pick a risk level, and forget about it. Your spare change becomes investments. Your paycheck gets split automatically. Your portfolio rebalances itself.
Is that worth $36/year? If the alternative is not investing at all, absolutely. The cost of not investing for a decade dwarfs any fee Acorns charges.
The graduation path: Use Acorns to build the habit and grow your balance. Once you hit $5,000-$10,000 and feel comfortable with investing, consider moving to a free platform. You’ll have learned the most important lesson—that investing is something you do, not something you think about.
For beginners who need that push, Acorns delivers. Just know when it’s time to move on. Explore all your options in our guide to the best investment platforms.
Start Investing With Acorns — $5 Minimum
Frequently Asked Questions
Is Acorns worth the money?
Yes, for beginners who struggle to save and invest. At $3-12/month, Acorns automates investing so you don’t have to make decisions or remember to contribute. The Round-Ups feature turns everyday spending into investments. However, the flat fee becomes expensive relative to free alternatives like Robinhood once you’ve built the habit and grown your balance past $5,000-$10,000. See our Robinhood review for a full comparison.
What are the best alternatives to Acorns?
M1 Finance offers free automated investing with custom portfolios (see our M1 Finance review). Betterment charges 0.25% AUM (cheaper than Acorns at higher balances) and includes tax-loss harvesting. Robinhood and Fidelity Investments offer free trading if you’re ready to make your own investment decisions. The best alternative depends on whether you need automation or just want to avoid fees.
Acorns vs Robinhood: Which is better?
Acorns is better for complete beginners who need automation and don’t want to make decisions. Robinhood is better for everyone else—it’s free, offers the same ETFs, and gives you full control. Robinhood requires you to choose what to buy and when to buy it; Acorns handles everything automatically. Once you’re comfortable with investing basics, Robinhood’s $0 cost makes more sense than Acorns’ $3-12/month. Read our Robinhood review for the detailed breakdown.
How do I cancel Acorns?
You can cancel Acorns anytime through the app or website with no cancellation fee. Go to Settings > Subscription > Cancel. Your investments remain yours—you can transfer them to another broker or sell and withdraw the cash. Note that if you have an IRA match, leaving before 4 years means forfeiting the matched funds.
Does Acorns actually help you build wealth?
Yes, if you stick with it. Acorns invests your money in diversified ETF portfolios that track the broader market. Over long periods, market returns have historically averaged 7-10% annually. The key is consistency—Acorns’ automation helps you invest regularly without thinking about it. The limitation is that Round-Ups alone won’t make you wealthy; you’ll need to add recurring contributions to build meaningful wealth over time.
Is $3/month too expensive for Acorns?
It depends on your balance. On a $500 balance, $36/year equals a 7.2% fee—expensive. On a $10,000 balance, it’s 0.36%—competitive with robo-advisors. The real question is whether Acorns gets you to invest when you otherwise wouldn’t. If paying $3/month means you invest $5,000 instead of $0, the fee is irrelevant compared to the returns you’d miss by not investing.
How much can you realistically save with Acorns Round-Ups?
Most users save $30-50/month through Round-Ups alone, averaging $360-600 per year. The exact amount depends on how often you use linked cards and your spending patterns. Someone who makes 100 card transactions monthly with an average round-up of $0.50 would invest about $50/month passively. Acorns reports that users have collectively invested over $4 billion through Round-Ups since launch. To accelerate savings, you can enable 2x, 3x, or 10x Round-Up multipliers—turning that $0.50 round-up into $5.00—though this requires more available cash.
Is Acorns safe? Can you lose money?
Acorns is safe from a security standpoint, but your investments can lose value. Your cash deposits are FDIC-insured up to $250,000 through partner banks, and your investment accounts are SIPC-protected up to $500,000 (including $250,000 for cash claims). Acorns uses 256-bit encryption, two-factor authentication, and is regulated by the SEC and FINRA. However, since Acorns invests in stock and bond ETFs, your portfolio value will fluctuate with market conditions—you could lose money during downturns. Historically, diversified portfolios like those Acorns offers have recovered and grown over long time horizons.
Can you withdraw money from Acorns anytime?
Yes, you can withdraw from your Acorns Invest account at any time with no withdrawal fees or lockup periods. Withdrawals typically take 3-5 business days to reach your bank account. For retirement accounts (Acorns Later), standard IRA rules apply: withdrawals before age 59½ typically incur a 10% early withdrawal penalty plus income taxes, unless you qualify for an exception. Your Acorns Checking account allows instant access to funds through the debit card or ATM withdrawals at 55,000+ fee-free locations. Note that if you’ve received an IRA match, withdrawing within 4 years forfeits that matched amount.