Is Acorns a Good Investment for 2023? Acorns is a micro-investing app for beginners new to the world of investors who want to save their money starting with small amounts. It is a very beginner-friendly app, and there is no minimum amount that you need to maintain to have an account on this app. Generally, getting into the investment world can be intimidating for many new users.
Transactions are complex, and investment criteria take time to understand. But this app, on the other hand, makes investment a lot easier, especially for people who have just begun. It has a very user-friendly interface which makes transactions very easy to operate. This app is specially designed for investors who want to get acquainted with the investment world and start investing their money without putting too much at stake. Many new investors like this app because of its user-friendly interface.
This app automatically saves some part of your money when you are spending ETA on something. For example, you bought a dress for yourself for $3.5. It will round up the cost to 4 dollars and save the remaining $.5 in its bank.
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Is acorns a good investment?
Acorns website is not designed for people who want to learn about hardcore investing. Instead, it’s a passive saving application that helps save money by subtracting some amount from your account balance now and then. You won’t even realize that some money has been deducted from your account, and by the end of the month, you’ll be able to save a considerable amount. The Acorns application is good for people who want to save money, but it’s not for someone who wants to invest and expects returns.
The process of saving is very automated, and customers do not have any contribution to this process. This will make you learn very little about investment, so if You’re planning to get deep into the world of investment, this is not the app for You. You also had a feature of reinvesting your rebounds into your funds.
The app also lets you choose the level of risk that you want to take. There are minimum risks, moderate risks, and aggressive risks. This way, you can select the type of risk-taking you want. You also can link your bank account to grow your portfolio on this app. Whether you like it depends on what you’re looking for from this app. If you’re looking for aggressive investments and stock market practices, this app is not for you. It is a fundamental passive money-saving application that can help you save money by the end of a month or year.
Reasons why people do not like this application
The concept of Acorns app is quite fun and user-friendly. Still, it needs to be liked and enjoyed by many customers. People have termed this app too basic to be called an investment app. Here are the reasons why most people do not like Acorns app-
- People find this app not worth long-term investments. It is acceptable for short-term investments when you do it in your piggy banks. But this app can only be trusted for long-term investments of significant amounts. Its interface is too simple and basic, and many better options are available now.
- For many people, short-term investments also mean investing money for at least a couple of years. For them, long-term investment is for 5 to 10 years. Even if you think of saving your money in this app for a couple of years, you will find that its accounting needs to be better.
- The app, on average, charges $0.5 from each transaction as it is on fees. Plus, you have to buy a basic plan of one dollar every month to use this app. This means that the money you will save will be less than the money you will spend on using this app. The whole point of using the app is frivolous because it consumes more money than it saves.
- Acorns app is not appropriate for middle-term investing as well. The app cannot be used for small, middle, and long-term investments. It can be only used for savings done in a time of a week or a month. For savings more than that, you must rely on something other than this app.
Is Robinhood better than acorns?
Robinhood is a perfect investment app for traders who work independently and demand flexibility. These investment apps offer a variety of features to investors, and their interfaces are understandable and user-friendly.
But Robin Hood provides many extra investment tips and reading material on its app. All this material is quite insightful, and you can learn much if you pay attention to what is written. Also, many people have said that Robinhood is much easier to use than acorns. It also has ETF and cryptocurrency options. This app doesn’t charge any transaction fee as, well.
Also, regular users of RobinHood get 3% interest on the cash that remains invested in their Robinhood accounts. The only issue with this app is that it doesn’t have any senior citizen account options or student account options. Since it provides many services and the expectations of people from this Upper high, it is safe to see that Robinhood is a perfect investment app meant for people who want to take part in their savings and investment process. On the other hand, Acorns is for people who want to save money passably and do not want much participation.
Acorn is the perfect app for you if you want to step into the world of investment and learn about the basics while saving your money passively. You must not expect too much from this application because it can only perform basic features regarding saving money and investment. To get deep into investments and savings, you must go for other apps such as Robinhood.