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?

If you will like to learn other ways to make money online so you can save even more, click here to join wealthy affiliate for free. 

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.

Check out this review for my #1 recommendations for making money online. 


  1. When – at what point can you access funds from the action investments? What are restrictions and penalties?

    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.

  2. 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!

  3. Thanks you for writing this article about acorns investment app and reassuring the public that the app is not a scam. As much as there is need for us to invest money so we can have a better future, it is also essential that we are careful not to fall victim of a scam. Investing your money is securing your future and that’s why I’m going to set my young  ones up for this program. Thanks

    1. This is  good program for the young, especially college student as they get to Use Acorn core for free. They now three account types; acorn spend , acorn core and acorn later. Young people can learn a lot about investing here and later can be more likely to invest in a 401k or Roth savings account. 

      Acorn spend gives little tips on spending which could help save members some money in their day to day transactions. Many get worried and think the acorn app is a scam because they automatically round up and save the change that comes from your day to day purchases. 

      Also, their fee of $1, $2 & $3 may look low but for someone who doesn’t  buy a lot, this is high and can eat into the spare change investment. 

      Either way, I believe this is a great app and is definitely not a scam. With the Acorn later account, you have more control over your investment which is great. 

  4. Very informative article. Do you use this app yourself or know personally anyone who has or is using it? I’ve always been iffy about investing, no idea what I am doing. Does this app invest for you or are you selecting what you would like to invest in? I have a college kid, he’s graduating in May 2020. This would be a good jump on learning how to invest.  

    1. Being iffy about online programs and apps is the best way to protect yourself from scams.  I do no use this app currently as I will rather invest in a traditional 401k or Roth investment account.  

      That said,  the acorn app is good for college students,  especially as they can invest for free. The investment is typically spare change so it takes time to get to a reasonable amount. 

      This app invest for you when you use acorn core. If you choose to use their acorn later option,  you will have more control. 

      Their acorn spend account give advice about spending,  to help you save money on day to day transactions.  It is an a legit app. 

  5. Hi Denise

    I see were this could be of great benefit for college kids that have not started to save for their future.  I wish this app had been available when I was a kid, but there were no smart phones then. LOL My savings plan was my mother. Half my allowance went to the Bank,

    For young people that live on their phones I can see this working great for them. I see my grandchildren using their phones for everything. If there is an app for it they have it and think they need it. The inventors are brilliant.

    I am sure my grandchildren would love this and understand it within seconds. I am going to check it out but for seniors I think I would need my kids to teach me these things LOL.

    Thanks for your website. I love learning new things.


    1. Hi Murray, 

      This app is definitely meant for millennials especially as the savings accrue gradually over time. It is especially great for college students as certain fees are waived for them.  It reminds me of my spare change option with my bank where every time you buy something,  the change goes to a separate account. 

      I was Pleasantly surprised once to see a balance of $429.

  6. Hey Denise,

    Great review. For better or worse, I am not eligible to use Acorns – although I’d consider it if I was. It is a good way to get started. I do know that 401(K)s, IRAs, Roth IRAs are a better way to invest – since they are mostly tax-free. They are not for everyone though. So, starting with roboinvestors such as Acorns allows you to make a habit of saving and investing, before moving to other similar roboadvisors or even other options. 

    The fees seem to be hefty though. This is a turnoff…



    1. True Marios,

      The fee is may seem small but for investment that only accrue gradually, it is actually hefty. Students however, can take advantage of the fee free investment option offered to them. I do prefer Roth IRA and 401K to this too. I like having a lot of control over my investment. 

  7. I absolutely love what I read in this insightful article because it is full of great information. This is fascinating and interesting to me.I would love to join acorn investment app to earn an extra income with my affiliates marketing. 

    how does acorns investment pays our their commission?. Thanks for the review. Best regards 

    1. Acorn affiliate program can offer a great way to gain some extra income. Their affiliate program works just like most affiliate programs. First you register to be one of their publishers. Then you promote their program by writing reviews and then as people join the program and invest in it, you will make commission.  Below is a list of the most important information about their affiliate program;

      Commission: $10 per funded account Cookie Length:  30 day cookie windowExtras: Seasonal promotional opportunitiesSupport: Dedicated Account Management Team

      They will also help you identify the target group which is people 24-35 years of age, who are tech savvy and financially conscious and have a household income of

  8. Hi Denise,

    I’m very glad I stumbled on your review. I have heard a lot about Acorn investment app and wondered if it will be right for me. I am interested in investing in stocks and bonds. I have been so unsure as the violence of scam is so dominant online.  The investment sector is so unsafe but as one gets older ,your saying is absolutely important. 

    Acorn sounds god but I don’t think it is the best option for me at my age. It seems  I will be better off investing in 401K or Roth. Anyway, I think, acorns investment app is a golden opportunity for college students as they stand to benefit from the free investment option. 

    I will keep looking for the right investment option. Do you have any suggestions?

    1. I agree, acorn app is geared more towards youths who have plenty of time to save before they go to retirement. For someone looking at retirement ion about 20 years, a 401K or Roth IRA is better.  There are many companies that offer the opportunity to invest in these kind of retirement savings. Some of these companies include; 

      Charles Schwab, 

      Employee Fiduciary


      Fidelity Investment

      American Funds

  9.  I tend to be leary of just about everything that I come across online. I have been scammed a time or two myself and I really can’t afford it.

    I appreciate the fact that you shared acorns investments with us and from all indications, it shows the platform is legit. Obviously its pros outweighs its cons which makes it much more recommendable.  

    However,  it’s probably not the best option for me.  I’ll keep looking.  Thanks

    1. Being weary about online programs that promise heaven and earth is the best way to stay safe from scammers.  Acorn however is legit.  This does not mean that it is perfect for everyone.  I hope you find a good investment option that meets your needs. 


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