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Betterment vs Acorns

Betterment logo

Betterment

Software

Your path to financial independence

From
$5/month
Rated
-
Full reviewWebsite
Acorns logo

Acorns

Software

Invest your spare change

From
On request
Rated
-
Full reviewWebsite

The short version

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

Where they differ

Only the attributes on which Betterment and Acorns actually diverge.

Attributes where Betterment and Acorns differ
AttributeBettermentAcorns
Starting price$5/monthOn request
Founded20082012

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 Betterment

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

Only in Acorns

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

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.

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

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

Where each one falls short

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

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

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

Pricing, plan by plan

Betterment

$5/month

No published plan breakdown. See the Betterment review.

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

Which should you pick?

Choose Betterment if

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

Choose Acorns if

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

Questions people ask

Is Betterment or Acorns better?
Neither clearly leads. Betterment starts at $5/month and Acorns at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Betterment or Acorns?
Betterment starts at $5/month and Acorns at On request.
Does Betterment or Acorns run on more platforms?
Betterment runs on Web, iOS, Android. Acorns runs on Web, IOS, Android.
What is Betterment best used for?
Betterment is most often used for small investors starting with automated investing at no minimum balance, fee-only digital wealth management for accounts under $24,000 via $5/month flat fee, premium advisory access for high-net-worth individuals with $100,000+ balance. Of those, small investors starting with automated investing at no minimum balance and fee-only digital wealth management for accounts under $24,000 via $5/month flat fee are not what Acorns is typically brought in for.
What can Betterment do that Acorns cannot?
Betterment covers Retirement planning, Financial advisory, Goal tracking, Investment accounts. Acorns covers Round-up investing, Portfolio management, Recurring investments, Credit cards. Both handle Automated investing, Bank accounts, Web support, IOS support.
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