Anybody use Acorns to invest "spare change"?
- Thread starter Dee*Jay
- Start date
- Joined
- Mar 26, 2006
- Messages
- 15,132
I do have a big change basket too (which I'm keeping), but this would round up to the next dollar on debit/credit card purchases. Dee gotta retire some day!
- Joined
- Sep 1, 2009
- Messages
- 10,295
Bank of America has the option to do this automatically. It can add up surprisingly fast without noticing.
I'm not sure I would feel comfortable with any app. Giving access to my account to some app would leave me very uncomfortable.
I'm not sure I would feel comfortable with any app. Giving access to my account to some app would leave me very uncomfortable.
- Joined
- Jul 27, 2011
- Messages
- 6,589
I canceled this feature bc I use my credit cards not my debit card
- Joined
- Mar 26, 2006
- Messages
- 15,132
Do you have to have the visa from BofA though or can you use any credit card?
- Joined
- Sep 1, 2009
- Messages
- 10,295
I think they only do their own cards, but you should check with your bank and see what options they have.
ame
Super_Ideal_Rock
- Joined
- Jul 7, 2004
- Messages
- 10,869
Yes, Acorn.
- Joined
- Mar 21, 2010
- Messages
- 85
@redwood66 we have USAA, too. I didn’t know they offered that service. I wouldn’t trust an app, but I’d use my bank.
- Joined
- Aug 22, 2012
- Messages
- 7,329
It is recent and from what I can tell it rounds up purchases to the next $10 increment. It adds up pretty fast!
- Joined
- Apr 25, 2014
- Messages
- 8,228
That would be an expensive packet of chewing gum!
- Joined
- Apr 10, 2018
- Messages
- 94
I actually used acorns for a bit, but realized that it wasn't worth it unless you have at least a few grand inside. In my opinion, it's somewhat of a scam because they try to get the normal day to day consumers who do not know much about investment fees. In reality, you may actually be paying a significant fee to have your money invested.
Acorns charge you ~$1/month to manage your money. $1 sounds like nothing, but hear me out. That basically mean, if you somehow end up accumulating $60 in one month from change (assuming 120 transaction a month where you take the average of $0.50 per transaction). A $1 fee on $60 investment, means Acorns is charging you a 1.7% fee PER MONTH (or 20% per year assuming your balance is still $60), by finance standards, that is an exorbitant fee. Obviously, this is only assuming you are only doing acorn to store your leftovers, versus actively putting money in.
Which is why, it makes more sense if you have more money, so the fee will be relatively less. A $1,000 investment in acorn would result in 0.10% a month. Which is still somewhat high, and I question the investment strategy of acorn. If you have over $1,000, I would much rather put it into Wealthfront, Betterment (both around 0.25% per YEAR, so on a $1,000 investment that's $2.50 a year). Avoid stocks/high interest bonds/REITs/complicated products unless you know what you are doing.
Acorns charge you ~$1/month to manage your money. $1 sounds like nothing, but hear me out. That basically mean, if you somehow end up accumulating $60 in one month from change (assuming 120 transaction a month where you take the average of $0.50 per transaction). A $1 fee on $60 investment, means Acorns is charging you a 1.7% fee PER MONTH (or 20% per year assuming your balance is still $60), by finance standards, that is an exorbitant fee. Obviously, this is only assuming you are only doing acorn to store your leftovers, versus actively putting money in.
Which is why, it makes more sense if you have more money, so the fee will be relatively less. A $1,000 investment in acorn would result in 0.10% a month. Which is still somewhat high, and I question the investment strategy of acorn. If you have over $1,000, I would much rather put it into Wealthfront, Betterment (both around 0.25% per YEAR, so on a $1,000 investment that's $2.50 a year). Avoid stocks/high interest bonds/REITs/complicated products unless you know what you are doing.
- Joined
- Jul 27, 2011
- Messages
- 6,589
See @Dee*Jay - doesn't the coffee can sound better and better? First of all, no fees. Second of all, you can think to yourself, "my beanie(s)" used to be in there. Third of all, you can shake the can of coins as an ad hoc musical instrument. Fourth of all, you can use it as a weight to strength train with. Fifth of all, repurposing a coffee can is a great way to renew/reuse/recycle.
- Joined
- Feb 22, 2009
- Messages
- 4,602
Hi red, I couldn’t find this account anywhere on USAA. Does is have a specific name? Thanks!
- Joined
- Aug 22, 2012
- Messages
- 7,329
@House Cat the rep told me you can find it here.
The tool that you are referring to is our Savings Booster.
She is able to click on My Tools from the main page at USAA.com and select Savings Booster from the Budgeting and Goals title.
It's the Text Savings that I have. But I turned off the text alerts because they were annoying. LOL
After looking at it, it seems that it is only 2-4 times per week and I cannot tell how they decide what to transfer but any little bit helps.
The tool that you are referring to is our Savings Booster.
She is able to click on My Tools from the main page at USAA.com and select Savings Booster from the Budgeting and Goals title.
It's the Text Savings that I have. But I turned off the text alerts because they were annoying. LOL
After looking at it, it seems that it is only 2-4 times per week and I cannot tell how they decide what to transfer but any little bit helps.
300x240.png)