Score: 3/5 stars
- Packed with features
- Low fees & great flexibility
- Robust privacy safeguards
- Can be difficult to navigate the app
Every little helps, they say. This couldn’t be truer when it comes to saving.
But in a world of PayPal & contactless payments, gone are the days of spare change rattling-around in your pocket just waiting to be dropped-into a piggy bank. Or perhaps one of those really cool over-sized bottles…
But the team over at Acorns thinks they’ve found a way to overcome this very 2017 problem. They’ve launched an app that links to your bank account and then invests your spare change into the stock market. Pretty cool, eh!
It’s been featured on Wired, Forbes, ABC News… and now Gen Y to FI! It’s not just the markets that are hitting all time highs
Yeah, pretty cool… but how does it work?
The key feature of the app is how Acorns automatically rounds-up what you spend to the nearest dollar and transfers the cash from your bank account without you having to do a thing. You can also make manual deposits into your account and set recurring payments if you want to give your pot a boost.
When you set-up your profile you’re asked to select from 1 of 6 portfolio funds with varying degrees of risk/return. You can drill-down into which holdings the fund is invested in & change your portfolio selection easily from the ‘Settings’ tab in the app.
Found Money is one of the latest features, where brands will give you a ‘Bonus Round-up’ for shopping with them. Everything from Asos to Uber. I’ve not personally used this feature yet, but it’s a nice little addition.
What’s also great is that it’s super cheap to use Acorns – just $1.25p/m for balances of less than $5k.
And is it safe?
The app & websites are both password protected, as you’d expect, but the thorough verification process also gave me more confidence in using Acorns. There’s more in-depth details on their FAQ page if you want to find out more.
So, does it cut the mustard?
I’ve already saved just over $100 in 2 months, which is approximately $600 annualised. Now that’s nearly an extra month of Super contributions by doing absolutely nothing at all!
However, the app can be a little difficult to navigate at times and some of the features are novel at best. But the beauty of this app is that even if I never click on it again, Acorns will still keep diligently working-away in the background without me having to lift a finger.
I’d love to hear your thoughts on the Acorns app, or any other similar tools out there. Just post below or get in-touch via the Contact tab at the top of the page.
In the meantime, I’m going to leave you with a link to this super-trippy promo video they’ve posted on YouTube. Weird….
Disclaimer: I am in no way affiliated with Acorns Grow Australia Limited and have not received any direct financial benefit resulting from this blog post.