Investing can feel intimidating, especially for beginners. Acorns, a popular micro-investing app, aims to make investing effortless by rounding up spare change from everyday purchases and automatically investing it. But is it still a good choice in 2025? In this review, we’ll take a deep dive into Acorns’ features, benefits, drawbacks, and compare it to alternative investment platforms to help you decide if it’s the right fit for your financial goals.
What Is Acorns?
Acorns is a micro-investing platform designed to help users build wealth gradually by investing small amounts of money into diversified portfolios. Launched in 2014, Acorns has grown into a full-fledged financial services company offering investment accounts, retirement planning, banking features, and cashback rewards.
Key Features of Acorns
1. Round-Ups
Acorns’ flagship feature, Round-Ups, automatically rounds up your everyday purchases to the nearest dollar and invests the spare change into a diversified portfolio. This hands-off approach makes investing effortless for users who may not have large sums to invest upfront.
2. Automated Investing
Acorns offers five diversified ETF portfolios, ranging from conservative to aggressive, managed by professionals. Users can customize their investment strategy based on their risk tolerance and financial goals.
3. Retirement Accounts (Acorns Later)
Acorns offers tax-advantaged retirement savings through Acorns Later, allowing users to invest in Roth, Traditional, and SEP IRAs. It provides automated recommendations to help users select the right retirement plan.
4. Acorns Checking
Acorns Checking is a debit account that offers no minimum balance requirements, fee-free ATMs, and automatic Round-Ups that invest spare change directly from transactions.
5. Acorns Earn (Cashback Rewards)
Users can earn cashback rewards from partnered brands, which are then invested in their Acorns portfolio. Participating retailers include popular brands like Walmart, Chevron, and Sephora.
How Much Does Acorns Cost?
Acorns offers three pricing tiers:
- Personal Plan ($3/month) – Includes Round-Ups, automated investing, and Acorns Later retirement accounts.
- Family Plan ($5/month) – Includes all Personal Plan features plus Acorns Early, a UTMA/UGMA investment account for kids.
- Premium Plan ($9/month) – Adds financial planning tools, priority customer service, and exclusive investment opportunities.
Acorns’ Investment Strategy
Acorns follows a passive investing approach, using exchange-traded funds (ETFs) managed by Vanguard and BlackRock. The platform follows modern portfolio theory, emphasizing diversification and long-term wealth-building.
Users can choose from five portfolio options:
- Conservative – Primarily bonds, lower-risk investments.
- Moderately Conservative – A mix of bonds and stocks, focusing on stability.
- Moderate – Balanced mix of equities and bonds.
- Moderately Aggressive – Heavier stock allocation for growth potential.
- Aggressive – Mostly equities, designed for long-term growth.
Pros & Cons of Acorns
Pros:
- Hands-off investing with automated Round-Ups.
- Access to retirement accounts (IRAs) for long-term financial growth.
- Cashback rewards from everyday purchases.
- User-friendly mobile app for tracking investments.
- No minimum deposit required to start investing.
Cons:
- Monthly fees can be high for small account balances.
- Limited customization compared to traditional brokerage accounts.
- No tax-loss harvesting, a feature available in some competitors.
- Lack of direct stock or crypto trading.
Alternatives to Acorns in 2025
While Acorns is great for hands-off investing, it’s not the only option. Here are some alternatives:
1. Betterment
- Best for: Automated investing with tax-loss harvesting.
- Offers robo-advising, retirement accounts, and customizable portfolios.
- Charges a 0.25% annual fee for its basic plan.
2. Stash
- Best for: Beginner investors who want to pick their own stocks and ETFs.
- Offers fractional shares and themed investment portfolios.
- Subscription pricing starts at $3/month.
3. Robinhood
- Best for: Commission-free stock and crypto trading.
- No monthly fees; allows users to trade stocks, ETFs, and options.
- Not ideal for passive investors looking for automation.
4. M1 Finance
- Best for: Customizable portfolios with automated investing.
- Allows users to create their own investment “pies” with stocks and ETFs.
- No monthly fees; instead, it charges for premium features.
Is Acorns Worth It in 2025?
Acorns remains a solid choice for beginners and passive investors who want an easy, automated way to start investing. Its Round-Ups, diversified portfolios, and retirement accounts make it a strong contender for those looking to build wealth over time without active management.
However, users who prefer more control over their investments, access to tax-loss harvesting, or commission-free stock trading may find better alternatives in Betterment, Stash, Robinhood, or M1 Finance.
Who Should Use Acorns?
- New investors looking for an effortless way to invest.
- Users who want automatic investing without managing trades.
- People interested in rounding up spare change to invest.
- Individuals looking for a simple retirement savings option.
- Investors seeking direct stock trading or advanced tax strategies may want to explore alternatives.
Final Verdict
Acorns continues to be a top choice for micro-investing in 2025, thanks to its automation, low barriers to entry, and diverse portfolio options. While it’s not the best choice for hands-on investors, those looking for a set-it-and-forget-it approach will likely find Acorns valuable.
For anyone who wants to dip their toes into investing without complexity, Acorns provides an accessible, easy-to-use platform to build long-term wealth effortlessly.