Sunday, February 5, 2023

Can Acorns Round Up Credit Card Purchases

Don't Miss

How Does Acorns Compare To Other Robo

Acorns Round Up Explained – How Does Acorns Invest Spare Change?

Acorns is designed for young investors with little to no regular income. Like other robos, Acorns offers multiple types of accounts that can help you to start investing, whether through a taxable or retirement account. It doesnt offer as many features or account types as some other services, so it isnt necessarily the best option for users of every life stage.

Stash is one company that operates in a similar market. Its tailored to people who are new to investing and it includes a lot of informational materials about saving money and investing. Stash is nearly identical to Acorns in price, but it isnt actually a robo-advisor. It doesnt manage accounts directly and only helps to guide users through the investing process.

A serious investor will also find that Acorns doesnt offer all the tools and features that many of its competitors do. For example, Wealthfront and Betterment both offer tax-loss harvesting. Wealthfront also offers direct indexing, a similar strategy for taking advantage of capital losses to lower your tax bill. This feature is only available for accounts with at least $100,000, but it is very useful if you have that much to invest.

Acorns is completely web-based, so investors who feel more comfortable talking with human financial advisors might prefer another company. Betterment has a plan that allows you to talk with a financial expert over the phone, though it requires a minimum balance of $100,000.

About The Site Author And Blog

In 2018, I was winding down a stint in investor relations and found myself newly equipped with a CPA, added insight on how investors behave in markets, and a load of free time. My job routinely required extended work hours, complex assignments, and tight deadlines. Seeking to maintain my momentum, I wanted to chase something ambitious.

I chose to start this financial independence blog as my next step, recognizing both the challenge and opportunity. I launched the site with encouragement from my wife as a means to lay out our financial independence journey and connect with and help others who share the same goal.

How To Get An Acorns Spend Debit Card

If youre thinking about signing up for Acorns Spend, you should consider doing so sooner rather than later. Only 100,000 cards were set to be produced in the first run, and more than 25,000 customers signed up on the first day. The rest of the 100,000 first run cards were swept up in the weeks after the program was announced. But Acorns Spend is accepting new applicants on a rolling basis, so you can still sign up.

I personally signed up as soon as I heard, claiming my spot.

Luckily, signing up is easy. All you need to do is log into either the Acorns app or online account, click on the Acorns Spend tab, and you can opt in. If youre in the app, youll use your finger to submit your signature for record, which will be placed on the back of the card .

The one downside? It can take some time to actually receive your card. Being made of Tungsten, then take more time to manufacture and produce. Though I signed up for my card the day the program opened in June, I didnt actually receive my card until November . Hopefully, this process gets a little bit faster as the program ages and their supply chain irons itself out.

Read Also: First Premier Bank Platinum Credit Card Reviews

What Are The Fees

The Acorns monthly fee ranges from $3 – $5:

  • Acorns Personal : Includes Acorns Invest + Acorns Later IRA + Acorns Checking
  • Acorns Family : Everything above + Acorns Early
  • There are no transaction or withdrawal fees for Acorns.

    Is Acorns worth it?

    Of course, you can do all of this on your own for free, if you’re a disciplined saver/investor. But most of us aren’t. So, if you struggle with investing or saving money, it’s probably better to kick Acorns $3-$5 per month to direct your savings. Then you can save without obsessing over every purchase.

    If you’re looking for a no-fee alternative, check out Robinhood. It offers commission-free trading so you won’t have to deal with pesky monthly charges.

    Accounts Supported By Acorns

    Invest Your Spare Change Automatically With Acorns ...

    1. Spend

    Spend comes with a debit card and an online checking account, allowing you to save and invest while you spend.

    2. Invest

    Invest allows you to invest your spare change automatically at any moment or on a recurrent basis. To stay in your target allocation, Acorns rebalances your portfolio and diversifies your investments to over 7,000 stocks and bonds.

    3. Later

    Later is a retirement account that allows you to invest for retirement automatically by setting up recurring installments. Choosing a retirement account is simple since Acorns suggests the best plan for you based on your objectives. Your employment and income at the time of sign-up are also taken into account.

    4. Early

    You can open an investment account for your children and invest on their behalf if you start early. When your children reach a certain age, they will be able to access their investing accounts.

    Also Check: How Do I Check My Cabela’s Credit Card Balance

    Two Years Later Micro Investing With Acorns

    This dates back to counting the spare change and egg money in my grandmothers chipped gravy boat in the 70s and continues on today.

    Today, this is the spare change stash in my office:

    But here in the 21st century, especially during a pandemic, I dont have a lot of cash transactions, and therefore not a lot of spare change.

    Enter the micro investing app Acorns which invests your digital spare change.

    Two years ago, I signed up for Acorns and linked my checking account. The checking account is my funding source.

    Then I linked my credit card. You can link more than one card including debit cards.

    For every transaction on the linked card, Acorns rounds up.

    For example, yesterday I bought a Kindle e-book and used my credit card. The total was $8.79. The round-up will be 21 cents.

    When the round-up total gets to $5.00 it is withdrawn from the funding source account and invested in the low-cost ETF portfolio of my choice at Acorns.

    If I have an even dollar transaction, for example, $40.00, the Acorns default is to round up a whole dollar. This didnt make any sense to me a dollar is not spare change! But this amount is adjustable. I changed the whole dollar transactions to round up 10 cents.

    The fee is $1/month. This is deducted from my checking account. It does not reduce the balance in my Acorns portfolio.Two years later, this is my Acorns account value history:

    My account value is $825.48

    *Note this data does not take into account the $1/month fee.

    How To Open An Acorns Spend Account

    Log in to your existing Acorns account. The fastest way to sign up for Acorns Spend is if you are already an Acorns customer. If you log in to your account, you can pre-order the Acorns Spend debit card in a few clicks. The first 100,000 Acorns Spend debit cards sold out in four days, but the company is still accepting pre-orders for additional cards as of February 8, 2019.Open an Acorns account online. If youre not already a customer, youll have to sign up for an Acorns account to access Acorns Spend. You can access the application at this link. Once there, click Dont Have an Account? Youll need to provide your email address and create a password to open an account.

    To finish opening your account, youll need to connect your spending cards, such as your debit and credit cards, so that Acorns can set up the round-up portion of the process. Next, youll provide personal information, such as your address and Social Security number. The last step of the process is to choose your investment allocation.

    You May Like: Which Credit Cards Pull Transunion

    Get Started While You’re In School

    The best time to start investing was ten years ago. The second best time is today. You might have heard this phrase before, and it couldn’t be truer. The earlier you can start investing, the more time compound interest has to work in your favor.

    Acorns has a fantastic offer for students. For students with high debt burdens and/or low incomes during school, Acorns can be a great way to start building wealth for their long-term future.

    Acorns founder Jeff Cruttenden holds the belief that there should be no barriers between Americans and investing.

    We understand that students carry great financial burdens, and Acorns wants to ensure there is nothing holding people back from investing. I founded Acorns because starting to save money as early as possible sets a path toward long-term financial health. Were committed to giving young people the opportunity to grow their investments with Acorns and changing their perception of investing from complicated and inaccessible to simple and essential.Jeff Cruttenden

    If you start investing at 18, even small amounts of money can put you years ahead of someone who starts investing in their mid-30s.

    Which Etfs Are Available Through Acorns Robo

    Acorns Spend Debit Card/Checking Account – Invest Your Cashback

    Within your preset investment portfolios available through the service, the app offers a number of index funds from iShares, JP Morgan, Goldman Sachs and Vanguard including:

  • Large Company Stocks Vanguard S& P 500 ETF
  • Medium Company Stocks iShares Core S& P Mid-Cap ETF
  • Small Company Stocks iShares Core S& P Small-Cap ETF
  • Developed Markets iShares Core MSCI Total International Stock ETF
  • Real Estate Vanguard REIT ETF
  • Corporate Bonds JP Morgan Ultrashort Term Corporate Bond
  • Corporate Bonds BlackRock Ultra Short-Term Bond ETF
  • Government Bonds iShares 1-3 Year Treasury Bond ETF
  • Government Bonds Goldman Sachs Access Treasury 0-1 Year ETF
  • When youre ready, press the Confirm Portfolio button at the bottom of the screen.

    Don’t Miss: How Do I Check My Cabela’s Credit Card Balance

    Why You Should Use A Money

    If you tend to spend before you save, these apps can help you adjust your behavior patterns. Theyre also a great option if youre just starting to build your savings. Rather than requesting a big lump sum like some traditional savings accounts do, these apps regularly move small amounts of money into your savings so the to-do is accessible for more people.

    Once youve built up some savings, you might want to consider moving your money into a high-yield savings account. While yields have been dropping in the current environment, you can still earn a higher rate if you park your savings at certain banks. You wont get rich, but online banks tend to offer savers a higher return. If you dont need to access your savings for a certain amount of time, you can also consider parking your money in a certificate of deposit.

    Youre Our First Priorityevery Time

    NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.

    We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.

    So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.

    Also Check: How Do I Check My Cabela’s Credit Card Balance

    How Do You Sign Up For An Acorns Account

    First, you need to fill out your personal and legal information. Then all thats left is to get verified, which usually takes around 24-48 hours.

    Please note that you need to be a US citizen to open an Acorns account. Youll need a valid Social Security Number and at least one eligible personal checking account. Each Acorns account is linked to only one Social Security Number, meaning you can only have one.

    Invest Your Spare Change

    Acorns App Review 2020: Investing Your Spare Change via ...

    You can opt-in for Round-Up investments once youve linked your debit or credit card to Acorns. This allows you to invest your spare change from everyday purchases automatically.

    When you shop with an Acorn-linked card, Acorns will round up your purchases to the nearest dollar. Then it will invest the difference in your account.

    For example, if you spent $26.35 on groceries, Acorns will round it up to $27. It will then invest the $0.65 change in your account automatically. According to Acorns, you can expect a 7.5% return on your assets on average.

    You May Like: Where Can You Use Your Discount Tire Credit Card

    How It Compares

    Acorns vs Stash: Unlike an Acorns account, Stash does not invest for you and has no minimum requirement. They guide you to choose investments based on your goals and risk level, but you must do the actual investing yourself.

    Acorns: Pricing information from published website as of 09/28/2020.

    Digit: Pricing information from published website as of 07/02/2018

    When I Get Paid

    When I Get Paid is a new addition to the Qoins platform, and it is closely aligned with your payment schedule. Rather than take small portions of your spending, When I Get Paid puts the power in your hands.

    With this option, the user designates a set amount or percentage to be set aside for every direct deposit into their account . That way, you can allot a portion of each paycheck to your debt, without having to worry about saving the money to make a payment yourself.

    Whichever option you choose, Qoins notifies you at every withdrawal. Youll have a limited window of time to cancel the transaction if you need the money.

    Tip: Need a little extra to pay down your debt? Qoins users can send out a family and friends link to their loved ones, allowing recipients to donate money straight into the users Qoins account.

    Once each month, Qoins sends a payment to your designated lender on your behalf. Qoins works with most major lenders, so it is easy to designate automatic payments. But if you cant find your lender on the app, you can manually enter an address to send payments to.

    Plus, you can set up more than one payment and choose different contribution methods for each. For example, you can use Smart Savings to chip away at your credit card balance and apply Round Up savings to your auto loan.

    Read Also: What Is Google Services Charge

    Why You Can Trust Bankrate

    Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. Weve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.

    Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.

    Our banking reporters and editors focus on the points consumers care about most the best banks, latest rates, different types of accounts, money-saving tips and more so you can feel confident as youre managing your money.

    Acorns Earn & Found Money

    Acorns Spend Debit Card Review – Invest Cashback with The Acorns App

    Acorns Earn and Found money is another unique part of Acorns. Earn is similar to websites like Rakuten in that it rewards you for shopping at their partner retailers. When you make a purchase at one of these retailers, you get a deposit of found money into your account. Deposits can take up to 90 days.

    You May Like: What Bank Is Ulta Credit Card

    So Is Acorns Worth It

    Acorns is paying off for many new investors by amassing returns over time through the stock market and other securities investments.

    According to a Reddit member, they first used Acorns in June of 2016. Their portfolio is set to be reasonably aggressive, according to their post.

    They started modestly, like many Acorn consumers, and progressively increased their investments over time. As of this writing, they claim to be contributing $250 each week, with a 10X multiplier on credit card round-ups.

    So for every $5 in credit card round-ups, they put $50 into their Acorns account. This user claims to have saved and invested $52,758 using Acorns since 2016, with a profit of $10,926.

    Thats a gain of over 26% in the stock market! So, are acorns really worth it? Its difficult to dispute that it isnt.

    Related Reading: How to make money as a teen .

    Key Features Of Acorns

    Acorns most distinguishing feature is its round-ups. And while a round-up doesnt necessarily add a lot on a per transaction basis, all of that change adds up over time.

    Found Money is a rewards program that adds bonus cash to your portfolio when you spend money with one of Acorns partners. There are currently two kinds of Found Money transactions. For Tap and Get offers you have to go through the Acorns app and then make a purchase through your mobile phone. For Simply Spend offers you just need to use your Acorns-linked card to make purchases with partner brands.

    Unlike a cash back credit card that offers cash back on all purchases, Found Money offers only exist for companies that partner with Acorns. There are currently more than 250 partners, including Walmart, Expedia, Apple, Nike and Sephora.

    Acorns also provides educational content through its website and app. This content explains important investment terms and concepts using simple language. You can also find useful financial advice to help you make the most of your savings and investments.

    Available Features

    • Human advisors

    Recommended Reading: How To Check Balance On Visa Gift Card Vanilla

    More articles

    Popular Articles