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Acorns vs Betterment

Acorns logo

Acorns

Software

Invest your spare change

From
On request
Rated
-
Full reviewWebsite
Betterment logo

Betterment

Software

Your path to financial independence

From
$5/month
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Acorns a flat monthly subscription regardless of balance, so $3 a month on Bronze is a heavy percentage on a small account; Betterment digital automated investing charges $5 per month fee for accounts under $24,000 balance
  • They diverge on capability: Acorns covers Round-up investing, Betterment covers Retirement planning.

Where they differ

Only the attributes on which Acorns and Betterment actually diverge.

Attributes where Acorns and Betterment differ
AttributeAcornsBetterment
Starting priceOn request$5/month
Founded20122008

Identical on both: pricing model (subscription), free tier (No), platforms (Web, IOS, Android), user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Acorns

  • Round-up investing
  • Portfolio management
  • Recurring investments
  • Credit cards
  • Debit cards

Only in Betterment

  • Retirement planning
  • Financial advisory
  • Goal tracking
  • Investment accounts

Both cover

  • Automated investing
  • Bank accounts
  • Web support
  • IOS support
  • Android support

What people use each for

The jobs each tool is most often brought in to do.

Acorns

  • Automated investing of spare change from everyday purchasesnot Betterment
  • Retirement saving through Acorns Later IRA accountsnot Betterment
  • Checking and high-yield savings alongside investingnot Betterment
  • Custodial investing and debit cards for children through Acorns Earlynot Betterment
  • Earning cashback that is invested rather than bankednot Betterment

Betterment

  • Small investors starting with automated investing at no minimum balancenot Acorns
  • Fee-only digital wealth management for accounts under $24,000 via $5/month flat feenot Acorns
  • Premium advisory access for high-net-worth individuals with $100,000+ balancenot Acorns

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Acorns

  • A flat monthly subscription regardless of balance, so $3 a month on Bronze is a heavy percentage on a small account
  • The emergency savings account and the 1 percent IRA match need Silver at $6 a month
  • Custom portfolios, Acorns Early for children and Money Manager are Gold tier only at $12 a month
  • There is no free tier

Betterment

  • Digital automated investing charges $5 per month fee for accounts under $24,000 balance
  • Premium advisory service requires minimum balance of $100,000 in eligible investments
  • Foreign transaction fees apply to checking account (though reimbursed after the fact)
  • High-balance fee discounts only available above $1,000,000 account balance

Pricing, plan by plan

Acorns

On request
  • Lite$4.99/month
    • Round-up investing
    • Automated portfolio
  • Plus$9.99/month
    • All Lite features
    • Checking account
    • Dollar-based investing
  • Premier$19.99/month
    • All Plus features
    • Premium investing

Betterment

$5/month

No published plan breakdown. See the Betterment review.

Which should you pick?

Choose Acorns if

  • You need round-up investing.
  • You work on Web, IOS, Android.
  • You also want portfolio management.
Acorns review

Choose Betterment if

  • You need retirement planning.
  • You work on Web, iOS, Android.
  • You also want financial advisory.
Betterment review

Questions people ask

Is Acorns or Betterment better?
Neither clearly leads. Acorns starts at On request and Betterment at $5/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Acorns or Betterment?
Acorns starts at On request and Betterment at $5/month.
Does Acorns or Betterment run on more platforms?
Acorns runs on Web, IOS, Android. Betterment runs on Web, iOS, Android.
What is Acorns best used for?
Acorns is most often used for automated investing of spare change from everyday purchases, retirement saving through acorns later ira accounts, checking and high-yield savings alongside investing, custodial investing and debit cards for children through acorns early. Of those, automated investing of spare change from everyday purchases and retirement saving through acorns later ira accounts are not what Betterment is typically brought in for.
What can Acorns do that Betterment cannot?
Acorns covers Round-up investing, Portfolio management, Recurring investments, Credit cards. Betterment covers Retirement planning, Financial advisory, Goal tracking, Investment accounts. Both handle Automated investing, Bank accounts, Web support, IOS support.
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