Discover Bank | Banking Review

Brief History

In 1985, the first purchase with a Discover card was made for $26.77 on September 17th. Introduced by Sears it was distributed nationally the next year after several test periods. In 1993, Discover became a publicly traded corporation. Two years latter in 1995, their website, discovercard.com launched. At the beginning of the new millennium Discover acquired Greenwood Trust Co. in Delaware. To this day, it remains their only brick-and-mortar branch. In 2006, Discover began offering checking/savings accounts. This is considered to be a huge stepping stone in the path of online banking, since Discover had only one physical branch.

Security (Is my money safe?)

Acorns is operated by Acorns Advisers, LLC, and is registered with the United States Securities and Exchange Commission as an Investment Advisor. All investments made with Acorns Advisers are insured by the Securities Investor Protection Corporation (SIPC). You can learn more about what SIPC insures here.

Acorns has excellent bank grade security with all their platforms using 256-bit encryption and physically secured servers for your privacy. Acorns security is also supplemented by multi-factor authentication, automatic logouts, and ID verification help prevent unauthorized access.

Expenses & Fees

Acorns definitely isn’t the best brokerage in terms of fees and expenses, but they are on the cheaper end and much more forthright than traditional brokerages with no hidden fees.

Acorns pricing is very straightforward at just $1 per month for the core taxable investment account and $2 per month for both the taxable account and the retirement IRA account. It is also worth noting that Acorns offers FREE accounts to college students in the spirit of supporting the up-and-coming !

Pros

Example of how Acorns’ round-ups work

Example of how Acorns’ round-ups work

  • Free Accounts for college students

  • Fees are at most $2 a month

  • No prior investment knowledge required

  • Extremely user-friendly web and mobile interface

  • No minimum investment needed to open an account

  • No upkeep after setup, Acorns is an almost completely passive way to save and grow your money.

  • Round-Ups: The ability to save by Acorns rounding your debt transactions to the nearest dollar is a pretty neat feature to save passively.

Cons

  • Extremely limited investment options

  • Extremely limited control over investments

  • Fee is relatively high with low account values

  • No tax benefits

Conclusion | Our thoughts

Here at we Budget Geek we believe in making finance easy, and Acorns does an excellent job at taking all the hard work out investing and making it easy and approachable to people who might not be finance savvy. Overall Acorns is an amazing way to get started investing without the hassle of having to learn a whole lot. We believe the main downside to Acorn is it’s lack of flexibility for investors who will otherwise grow out of it and eventually want a platform that offers more control over investments and more investment options. If you decided you liked this review and you’d be interested in trying out Acorns, you can support us by signing up with this link.

Budget Geek Appraisal & Rating

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Last updated on April 26, 2019