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Acorns vs Sofi and Chime: Which Neobank is Best for You?

Acorns: How a Neobank and Robo-Advisor Can Help You Manage Your Money

In today’s increasingly digital world, traditional banking methods are becoming outdated. More and more people are turning to digital-only banks, known as neobanks, to manage their money.

One such neobank is Acorns, which offers not only banking services, but also subscription-based investment products through its robo-advisor app. In this article, we will explore what Acorns is, how it works, and how it can help you manage and invest your money.

Acorns as a Neobank

First, let’s define what we mean by a neobank. Simply put, neobanks are digital-only banking institutions that offer most, if not all, of the services provided by traditional brick-and-mortar banks.

Whereas traditional banks have physical branches where customers can go to deposit or withdraw money, open accounts, or seek financial advice, neobanks operate entirely online. Customers can access their accounts and manage their money through a mobile app or website.

Acorns is one such neobank. But it’s more than just a bank.

It’s a neobank with a twist. Acorns also offers investment services through its robo-advisor app.

But we’ll get to that in a moment. First, let’s look at what banking services Acorns provides.

Acorns Overview

Acorns provides banking services through partnerships with two banks: Lincoln Savings Bank and nbkc bank. This means that when you open an account with Acorns, your deposits are held at one of these two banks, and your funds are FDIC-insured up to $250,000.

What banking services does Acorns offer? Here’s a rundown:

– Checking and savings accounts: Acorns offers a Spend account that functions like a checking account, and an Acorns Later account that functions like a savings account for retirement.

Money in your Spend account earns 0.10% APY, and money in your Later account earns up to 1.50% APY, depending on your portfolio. – Debit card: Acorns offers a debit card that’s linked to your Spend account.

You can use your card to make purchases, withdraw cash from ATMs, and even earn cash back at select merchants. – Automatic savings: With Acorns, you can set up automatic savings to transfer money from your checking account to your Later account on a daily, weekly, or monthly basis.

This helps you save for retirement without even thinking about it. – Joint accounts: Acorns also offers joint accounts for couples who want to save and invest together.

So, that’s the banking side of Acorns. What about the investment side?

Let’s take a closer look.

Acorns as a Robo-Advisor App

Acorns offers investment services through its robo-advisor app. What is a robo-advisor?

It’s an automated investment platform that uses algorithms to manage your money. In other words, it’s a digital financial advisor that takes the emotions out of investing and helps you make smart investment decisions based on your goals and risk tolerance.

With Acorns, you can choose one of two subscription plans: Personal or Family. Here’s what each plan includes:

– Personal plan: For $1 per month, you get access to Acorns’ investment platform, which invests your money in a portfolio of exchange-traded funds (ETFs) based on your goals and risk tolerance.

You can also earn bonus investments by shopping at select retailers through the Acorns app. – Family plan: For $5 per month, you get everything included in the Personal plan, plus the ability to open and manage investment accounts for your children.

You can set up automatic investments for your kids’ accounts and teach them the importance of investing from an early age. Acorns’ investment platform uses a concept called roundups to help you invest your spare change.

Here’s how it works: when you link a debit or credit card to your Acorns account, Acorns rounds up each purchase you make to the nearest dollar and invests the difference. For example, if you make a purchase for $4.50, Acorns will round up to $5 and invest the $0.50 difference.

Acorns also offers a feature called Found Money, which lets you earn bonus investments when you shop at select retailers through the Acorns app. When you make a purchase at a Found Money partner, a percentage of your purchase is invested in your Acorns account.

This is a great way to boost your investments without having to do anything extra.

Conclusion

In conclusion, Acorns is a neobank and robo-advisor app that offers a unique combination of banking and investment services. With Acorns, you can manage your money, save for retirement, and invest in a portfolio of ETFs based on your goals and risk tolerance.

Whether you’re just starting out on your financial journey or you’re a seasoned investor, Acorns has something to offer. So why not give it a try?

Sign up for an account today and see how Acorns can help you manage your money and invest in your future. Acorns: A Closer Look at Its Banking Features and Investment Opportunities

In our previous article, we explored the basics of what Acorns is and how it works.

We learned that Acorns is a neobank and a robo-advisor app that offers a unique combination of banking and investment services. In this article, we will dive deeper into Acorns’ key features, its investing opportunities, and the overall banking experience that users can expect.

Key Features

Checking Accounts

One of the key highlights of Acorns is its Spend checking account. With this checking account, you can enjoy Real-Time Round-Ups, which means that every time you use your debit card for a purchase, Acorns automatically rounds up the amount to the nearest dollar and invests the difference.

You don’t have to worry about saving money, Acorns takes care of it for you. Additionally, the Smart Deposits feature is designed to make saving easier.

It automatically transfers funds from your linked checking account to your Acorns Later account.

Savings Accounts

Acorns offers a Later account, which is a savings account designed for building an emergency fund or saving for retirement, with no required minimum daily balance. You can make a one-time deposit or set up auto-deposits to build your emergency fund or savings for retirement through this account.

The Later account is non-interest-bearing, which means you will not earn interest on your deposits, however you can invest the money in the account through Acorns’ investment platform and earn interest through the funds you choose to invest in.

Benefits and Perks

Acorns offers a rewards program called Earn that provides its customers with cashback rewards on purchases made through partner merchants. Users can also benefit from bonus investments, financial literacy resources, and free referrals.

The Earn program has a large number of retail partners from which you can earn rewards and bonuses. Furthermore, Acorns Found Money program is a cashback rewards program in which Acorns invests a percentage of your purchase amount in your Acorns account when you make purchases from eligible merchants.

For those who are relatively new to investing, Acorns offers a large number of resources aimed at educating individuals on financial literacy and the basics of investing. The program includes educational content that can be read and watched via the app, providing individuals with the knowledge and information they need to make informed financial decisions.

Investing

Acorns’ investing platform uses an automated system that eliminates the need for input and guidance from an individual other than an initial preferences survey they fill out when signing up. Users select from professionally designed portfolios of ETFs, which are created according to your investments preference survey.

Your investment portfolio is constantly supervised, regularly rebalanced, and based on long-term investment principles. Acorns’ investment platform offers diversity in its portfolio offering, including ETFs focused on asset classes such as government bonds, real estate, and corporate bonds.

For those looking to invest for retirement, Acorns offers IRA accounts that are designed to allow users to invest their savings for retirement. It offers Roth IRA, Traditional IRA, and SEP IRA accounts.

Each retirement account has a different level of tax benefits, so it’s important to consult with a financial professional before making any decisions regarding which account to open. Acorns makes it easy to manage your investments through the app, with real-time updates on your portfolio and the ability to make changes easily and quickly.

Perhaps the most interesting feature of Acorns’ investment platform is its ability to invest in Bitcoin ETFs. This feature can be incredibly appealing to those invested in cryptocurrency or those who are simply looking for diversified investments.

Banking Experience

Acorns mobile app is central to its business model and is considered one of the best digital banking experiences on the market. The app is user-friendly and provides an overall great experience, with a seamless integration of banking and investment features.

With a 4.5-star rating on the Apple App Store, the app is well-regarded by users. The app also features educational resources to boost financial literacy and make investing more accessible to everyone.

These include short articles on personal finance, as well as in-depth guides on investing. Indeed, the app is designed to make investing less intimidating, and while it is suitable for both novice and experienced investors, it is particularly user-friendly for those new to investing.

Subscription Fee

Acorns offers a subscription-based model of its services. The cost of a subscription depends on the plan you choose.

The personal plan, which lets you create an investment account, plus an impressive savings tool, and a debit card connected to an FDIC-insured checking account will cost you $1 per month. The family plan, which allows you to open and manage investment accounts for your kids in addition to all that comes with the personal plan, is $5 per month.

In summary, Acorns is a fantastic platform for investing, saving, and banking, all in one place. With its unique combination of features and investment opportunities, Acorns is shaking up the industry by making investing more accessible and understandable to everyone.

Its mobile app and financial literacy resources also make it an incredibly user-friendly platform, whether you’re an experienced investor or just starting out. With its subscription-based model, the benefits of Acorns can be enjoyed at a low cost, starting at just $1 per month.

Acorns:

Customer Service and

How to Apply for an Account

In our previous articles, we explored the key features of Acorns, its investing opportunities, and the overall banking experience that users can expect. However, a comprehensive review of Acorns would not be complete without addressing its customer service options and the application process to open an account.

In this article, we delve into how you can get assistance when you have questions about Acorns, and the step-by-step process for applying for an account with Acorns.

Customer Service

Acorns aims to make contacting customer service as accessible as possible. It offers live customer service options, giving users several methods to obtain assistance, depending on their preference.

Here are the different live support options available:

-Phone line: Acorns has a phone line that lets you talk to a live agent. This option is available from Monday to Friday, 9 am to 5 pm PST.

-Live chat: Live chat is available 24/7. Its the perfect option if you have a question that you need answered immediately.

-Email: Acorns also provides you with the option to email them your question to the support email address provided on their website. They usually respond within two days.

Apart from these options, Acorns also has a Help Center that addresses frequently asked questions and describes account features, products, and services. Users can find resources and information on the Help Center page for common questions related to issues, account management, banking, investing, subscriptions, and taxes.

How to Apply

The application process for opening an account with Acorns is quick and relatively straightforward. By following the steps as outlined below, you can have an account up and running in just a few minutes:

Step 1: First, you need to download the Acorns mobile app from the Apple App Store or Google Play Store.

Step 2: Sign up for an account by providing your name, date of birth, social security number, and other basic information. Acorns takes account security seriously, and all the information provided is encrypted to ensure your privacy is protected.

Step 3: Next, choose a plan: Personal or Family. The Personal plan allows you to create an individual investment account, while the Family plan gives you the option of creating investment accounts for multiple family members.

Step 4: Follow the prompts to connect your bank account or credit card. Acorns connects securely to your chosen bank or credit card provider and sets up Real-Time Round-Ups.

Step 5: Verify your identity. Once your bank account or credit card has been connected, you will be prompted to verify your identity.

Acorns needs to know that it’s you who is signing up to prevent fraud, and this identity verification is as easy as uploading a photo of your ID.

Step 6: Finally, you will choose your portfolio based on your unique preferences.

This will entail a survey that will ask questions such as your desired investment return, risk appetite, and how much youd like to invest per month. Step 7: With everything set up, you can now get started investing! The app will notify you when there is a Round-Up ready to be invested, and you can manually invest money into your account if you’d like.

In conclusion, Acorns is a great platform for those looking to start investing with little previous experience. With its live customer service options, Help Center resources, and user-friendly application process, Acorns makes it easy to get started and to get assistance whenever necessary.

With the added benefit of being able to create an FDIC-insured checking account and a savings account all in one place, combined with investment opportunities that include micro-investing and portfolios with Bitcoin ETFs, theres no denying that Acorns has a lot to offer for those starting out in the world of personal finance. Acorns vs.

Competing Neobanks and

Final Take

Acorns is a neobank and investing platform that has been making waves in the world of personal finance. However, the neobank industry is becoming increasingly competitive, with other platforms such as Sofi and Chime also offering similar services.

In this article, we will compare Acorns to two of its competitors, Sofi and Chime, and provide a final take on Acorns as a neobank and investing platform.

Comparison to Sofi

Sofi is another neobank platform that offers investment and banking services. Like Acorns, Sofi offers a range of investment products and has its own debit card.

However, there are a few key differences between the two platforms. While Acorns offers savings accounts, Sofi offers savings and money market accounts with competitive annual percentage yields (APYs) that can earn up to 0.25%, compared to Acorns Later account which earns up to 1.50% depending on which ETFs you choose to invest in.

Additionally, Sofi provides members with access to credit cards, personal loans, and student loan refinancing options, which Acorns does not offer. Sofi is suitable for individuals who want an all-in-one platform that offers banking, investing, and loans in a single portal.

Comparison to Chime

Chime is another neobank platform that competes with Acorns and operates similarly. Both platforms have a savings account, debit card, and automatic savings features.

However, Chime is somewhat different from Acorns in what they offer in terms of banking features.

Chime offers a “spot me” feature, which allows customers who are short on funds to overdraft their accounts with a limit of up to $100 with no fees charged.

Chime also has a feature called “pay friends,” which allows customers to send money to friends and family instantly through the app. Chime offers these services amongst other banking features and is intended for customers looking for a financial institution with a wide range of tools.

Final Take

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