How Acorns Makes Money (2024)

Table of Contents
Key Takeaways Acorns' Industry Acorns' Financials History and Leadership Recent Developments Where Does Acorns Invest? What Banking Features Does Acorns Offer? How Do Round Ups Work? The Bottom Line

Table of Contents

Table of Contents

  • Acorns' Industry

  • Acorns' Financials

  • History and Leadership

  • Recent Developments

  • FAQs

  • The Bottom Line

  • Company Profiles
  • Financial Companies

The Acorns micro-investing platform makes money through membership fees

By

Nathan Reiff

How Acorns Makes Money (1)

Full Bio

See Also
Top 32 Reviews From Legit Acorns BuyersHow Much Can You Actually Earn with Acorns' Found Money Program?6 Ways to Make Money ($500+) with the Acorns App - Wealthy NickelAcorns Review 2024: Pros, Cons and How It Compares - NerdWallet

Nathan Reiff has been writing expert articles and news about financial topics such as investing and trading, cryptocurrency, ETFs, and alternative investments on Investopedia since 2016.

Learn about our editorial policies

Updated June 11, 2024

Reviewed byEric Estevez

Part of the Series

How Companies Make Money

Technology

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  2. IBM
  3. Micron
  4. Snapchat
  5. Spotify
  6. Twitter
  7. Uber

Retail and Manufacturing

  1. Alibaba
  2. Amazon
  3. Lockheed Martin
  4. Nike
  5. Starbucks

Financial

  1. Bank of America
  2. Berkshire
  3. Blackrock
  4. JPMorgan
  5. Square
  6. Visa
  7. Robinhood

Private Companies

  1. Acorns

    CURRENT ARTICLE

  2. Chime
  3. Credit Karma
  4. Reddit

Acorns is a fintech company best known as a micro-investing platform that allows users to set up automated investments into a portfolio through Round-Ups: Acorns rounds up a debit or credit card purchase made on a linked card to the nearest dollar and invests the change on behalf of the member. Investments are made into one of five portfolios carrying different levels of risk.The website also offers basic banking services at low fees.

Key Takeaways

  • Acorns provides a platform for members to micro-invest spare change in a diversified portfolio.
  • The fintech company offers retirement savings accounts, a debit card, and other basic banking services.
  • Acorns generates revenue through member subscription fees.

Acorns' Industry

The company divides its services into three primary categories. The first enables members to invest spare change in exchange-traded funds (ETFs). The second allows users to create and fund an IRA through the platform, and the third provides members with a debit card provided through companies such as Visa, Inc. (V).

See Also
Has Anyone Made Money on Acorns? 5 Easy Ways To Do It

Acorns offers subscriptions for $3, $5, and $9 per month for packages of different services.The average Acorns member invests $627 through Round-Ups, the company's signature program.The company's competitors include Robinhood Markets, Inc. and Stash Financial, Inc.

Acorns' Financials

As of 2024, Acorns has over 9 million users who have invested $15 billion through its platform.Acorns Invest, Later & Early accounts are SIPC-insured up to $500,000. The company has raised funding from backers including NBCUniversal Media LLC, Paypal Holdings Inc. (PYPL), and Black Rock Inc. (BLK).

History and Leadership

Acorns was founded by the father-and-son entrepreneurial team Walter and Jeff Cruttenden and launched in 2014. Walter Cruttenden also founded Roth Capital and was the founder and CEO of the investment banking unit of E*Trade. In 2024, Noah Kerner is the company's CEO. Kerner has attracted investors including high-profile celebrities like Jennifer Lopez and Alex Rodriguez.

Recent Developments

In 2023, Acorns partnered with GoHenry, a global leader in money management and financial education for kids. The company introduced the Mighty Oak debit card for saving and spending in 2024.

Where Does Acorns Invest?

Acorns invests an individual's savings in five Acorns Core portfolios and four Acorns ESG Portfolios composed of exchange-traded funds ETFs.

What Banking Features Does Acorns Offer?

Acorns banking features include 3.00% APY on Checking Accounts, early payday options, and paycheck split options to encourage saving.

How Do Round Ups Work?

Individuals can link their credit and debit cards to Acorns. The company will round up purchases on these cards to the nearest dollar and save that amount to the Acorns account.

The Bottom Line

Acorns is a platform that allows individuals to participate through micro-investing using spare change. The company offers retirement savings accounts, a debit card, and banking services.

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Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.

  1. Acorns. "What are Round-Ups?"

  2. Acorns. "What Is Acorns & How Does It Work?"

  3. Acorns. "Invest,"

  4. Acorns. "Later,"

  5. Acorns. "Spend,"

  6. Acorns. "Pricing,"

  7. Acorns. "About."

  8. Cruttenden Partners. "Team,"

  9. Wall Street Journal. "Jennifer Lopez, Alex Rodriguez Are Investing in Fintech Firm Acorns,"

  10. Acorns. "What is GoHenry and What Do They Do?"

  11. Acorns. "Mighty Oak Card."

Part of the Series

How Companies Make Money

Technology

  1. How Companies Make Money
  2. IBM
  3. Micron
  4. Snapchat
  5. Spotify
  6. Twitter
  7. Uber

Retail and Manufacturing

  1. Alibaba
  2. Amazon
  3. Lockheed Martin
  4. Nike
  5. Starbucks

Financial

  1. Bank of America
  2. Berkshire
  3. Blackrock
  4. JPMorgan
  5. Square
  6. Visa
  7. Robinhood

Private Companies

  1. Acorns

    CURRENT ARTICLE

  2. Chime
  3. Credit Karma
  4. Reddit
How Acorns Makes Money (2024)
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