The acorns investment app is not a scam!

If you are someone who is worried about the future, then you are always looking for a place to invest and save some money. However, you must also feel put off by all the daily complications and decisions you need to make when it comes to investing.

Another problem is that with so many investment products available online, it is hard to sort out what is real or not, what is safe and what is just a scam.

In this article, what you will find out is important information about the Acorns investment App, an automated savings app that claims to help you build up your savings automatically.

The question remains – is this Acorns investment app a scam or not? Can you trust that the acorn app is safe to use? Can it really help you start investing in a simple and easy way without needing hundreds of dollars to buy stocks or bonds?

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Is the Acorns Investment App a Scam or a Legit Service?

Before you use Acorns, you need to find out first if this app is a scam or not.

The popular Acorns Investment App in my opinion is not a scam. First off, the company is backed by some big name investors and as far as what consumers  have to say; many who have tried the app say it is great.

If it were a scam, there would be people saying how they have been scammed out of a lot of money but this is not the case. Plus as I mentioned earlier, they are backed by some huge companies who wouldn’t want to risk their reputation with a scam.

Acorns has behind it a 100% legit micro investing strategy that allows you to easily save your money and invest it on autopilot as you make purchases. According to the app’s website, Acorns transfers your money to an SIPC insured account so there is little or nothing for you to worry about.

What is the Acorns Investment App all about?

Acorns is an investment app created by a micro investing company aimed to help you start investing quick and easy. The app is said to be the first micro investment mobile app that lets you open an account on your smartphone.

The app is designed to let you start investing with the use of spare change from every purchase you make. It is geared mostly towards youths, especially college students.

This app is a little different than Digits, another investment app that offers to help you get started on investing in a quick and easy way too.

Unlike Digits that uses an algorithm to determine if the money in your bank balance is an “extra change”, which they then transferred to your savings account, Acorns instead rounds up all the changes from every purchase you make  to a whole dollar then automatically invest that money for you.

In addition, this app does not send your money to a savings account but instead invest it in a “personalized investment portfolio”.

Father and son, Jeff and Walter Cruttenden, founded the app and the company in 2012. They created the app to be completely automated so you can save your spare money easily and quickly and get started in investing. This is a great app for first time investors.

How Does Acorns Investment App Work?

Acorns app works by simply keeping track of your purchases then transferring the change into your Acorns account. The money transferred to your account is usually a round up of the change generated from your purchases.

However, Acorns does not exactly work as you think when it says it rounds up your spare changes. It does not really round up your purchases, as it does not have a way to do that.

Only the merchant can do a transaction adjustment. What the Acorns’ mechanism does instead is to link the accounts you use for rounding up and investing and keep track of the change you would have rounded up if your transactions were actually rounded up. (a little complicated)

Acorns will then link your checking account, monitor your changes and when it rounds up to at least $5, then it will transfer that amount to your Acorns account.

That being the case, don’t expect that with every purchase you make your money will be rounded up to the nearest dollar because that won’t happen. If you thought that Acorns investment app is a scam because of this rest assured that it is not.

All the money invested using Acorns comes from a single checking account no matter the number of cards or accounts you linked to the app for spending and rounding.

Often, those who think that Acorns investment app is a scam think that their change will be transferred out of their checking account every time they make a purchase.

This is not how Acorns work so don’t expect this to happen. The biggest possible round up is 99 cents and that means it take you about six purchases before your money can be transferred and invested.

When using Acorns investment app, you can expect to have occasional transfer of about $5 every few months. When a transfer is made, it will be listed as “Acorns Investment WED PMTS” on your bank statements.

As of the present, Acorns is only a smartphone app, which probably gets you worried as others are. Smartphone apps and the same services are vulnerable to online attacks but these services are clearly what the future is.

The company does assure Acorns users that there is nothing stored on your phone when using the app so there shouldn’t be anything to find even if you lose your phone.

Acorns is free for four years for college students with a valid .edu email address. Other investors pay $1 a month until their account balance hits $5,000, then 0.25% of their account balance per year.


  • Acorns has partnered with some big companies such as Jet, Hulu, Blue Apron and Boxed to give you up to 10% cash back when you use an Acorns linked credit or debit card at one of the partners. Your reward usually deposits in your Acorn account in 30 to 60 days.

  • There’s no minimum to open an account but a $5 minimum is required to start investing in one of Acorn’s five pre-built portfolios.

  • Savings is automatic; you don’t have to think about it. This is great for people who struggle with saving.

  • It is free for four years for college students

  • It has great educational materiel on investing for beginners. Acorns also publishes Grow Magazine which is an online personal finance site aimed at millennial. It offers advice about side jobs, credit card debts, student loans and other financial topics in addition to investing.


  • Acorns offers only individual taxable accounts. That might be OK for college students who don’t have the income to qualify for an individual retirement account. However, investors who do qualify for an IRA or a 401(k) should think about maxing out those accounts before directing any money into a taxable brokerage account.

  • At the beginning, if you are not a student, you pay $1 on a balance less than $5000. Seeing how the money you save this way accrues slowly, the fee might be a big price for new comers.



Acorns investment app is an ideal investment app for the novice, especially those who have been dragging their feet about investing. The automatic roundups at Acorns make saving and investing easy, and most investors will be surprised by how quickly those pennies accumulate.

It is however not the best option for people who qualify to invest in an IRA or 401k account. Until they introduce a tax deferred plan, this app will not be the best investment option for someone with other choices.

Many think this app is a scam, but if you take a close look at it, you will soon find out that it is not. It just helps make saving an automated process.

Cheers Denise.

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    1. I believe you can withdraw at any time as long as you have money in your account. Withdrawals may take 3-6 business days to post into your checking account because there is a mandatory 2-day settlement period.

      The Securities and Exchange Commission (SEC) mandates this period when buying or selling shares in Exchange Traded Funds (ETFs). It’s referred to as Regular Way Settlement. Once this period expires, Acorns initiates a draft into your checking account.

      When you withdraw money after a recent investment, in some cases Acorns may place a 5-day hold to prevent fraudulent activity on your account.

  1. I’m a bit more hands-on with my investments so I actually don’t like the main product. The “found money” shopping portal seems to be the best portion, fairly competitive rates. They’ve also upped their referral bonus this month, referring 10 gets you $1k (not sure if in addition to the $5 for each or instead). Here is a new $5/$5 referral code Thanks to anyone who uses!

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