Acorns vs Sofi – Which app is best for Investing?

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This the most comprehensive article on Acorns vs Sofi.

As you probably know both Acorns as well as Sofi are investing app. In such a condition, it becomes very difficult to find which one is better, Acorns or Sofi.

So if you want to know which app more about acorns and sofi, this post is for you.

Let’s see which one is best. Is it sofi or acorns?

Acorns Vs Sofi – Comprehensive Comparision

Acorns is best for micro saving and investing. But, when more money is invested, acorns charges a very high fee. Acorns is best for beginner investors. On other hand, Sofi provides no commission and no management fees which are best for regular trading.

Also, acorns is designed for people who want to invest or save a little amount of money. But, sofi is designed for a more high amount of investing.

Sofi also provides more useful tools and features that helps to invest the money. But, acorns has more tools and features like Found Money Feature, RoundUp Feature that helps to save more money.

acorns vs sofi

What is Acorns?

Acorns is a micro saving and investing app. It helps individuals to save their money with the help of Acorns different features and later on invests your money in the stocks, cryptos, and much more.

Along with a micro saving and investing app, it is also a great Robo-advisor for beginners who want help to invest their money.

With the help of Acorns, you can take care of the all-in-one investment, retirement, checking, and more.

Acorns wants investors to start their savings and investing even with little amounts of dollars. To achieve this, it provides different features like Acorns Round-up, Acorns Found Money to save their money during different purchases.

There are already 7 million plus people who join Acorns, you can also be the one by signing up now for just $1 or $3 per month, and start investing spare change from everyday purchases.

Also Read – Acorns App Review 2020 – Acorns App Pros, Cons and Acorns All Features

Acorns Round-Up Feature

The feature is very useful for micro saving, it will save your money and you even don’t know when Acorns do this. Now, you will see the excellent work of Acorns. Once, you will make any purchase from your bank that you link to Acorns, Acorns rounds up your transaction.

For example, you make a purchase of $98.28, Acorns will round up the purchase and extra 72 cents will be added to your Acorns Rounds Up Account.

And just like this when the balance of your Round-Up Account cross to $5, the money will be withdrawn to your bank account and added to your Acorns Investment Account. The same feature is also available on Bank of America.

Its not necessary that only 72 cents can be saved from my purchase, it depends on me , how much I want to save from my purchase. For example, from my previous purchase of $98.28, I can also save $4 or 5$ from it.

But, Acorns from itself do micro saving so that user doesn’t get much problem in saving and investing their money.

If you want to add extra money to your Acorns Round Account, you can also easily do that. Just withdraw money from your Bank Account and add the money to your Acorns Round Account.

It depends on you to apply a round-up feature on all the purchases that you will make or at any specific purchase. You can also exclude any purchase from the round-up feature.

Acorns Spend

Acorns provides you the only checking account with a debit card that saves, invests, and earns for you. The debit card is designed to look and feel as good as it works.

Acorns provide you instantly save and invest. With Acorns, you get Real-Time Round-Ups, automatic retirement savings, custom Spend Strategies and more.

The Acorns Spend Feature is very ease and access. You get Digital direct deposit, mobile check deposit and check sending, free bank-to-bank transfers, and unlimited free or fee-reimbursed ATMs nationwide.

Acorns follow the Easy, smart ways to save together while you spend. No minimum balance or overdraft fees, and fee-reimbursed ATMs nationwide — Acorns Invest + Acorns Later + Acorns Spend for just $3/month

Not all of these features will be available immediately at launch. They will be released on a rolling basis as Acorns learn from our customers and make enhancements.

Acorns Spend also comes with a debit card designed to look and feel as good as it works, made of tungsten metal, with a matte finish and spot gloss treatment on the Acorns branch, to remind you what your Acorns can become.

With Acorns Spend, you get everything you do with Acorns Invest and Acorns Later, plus a fresh debit card and an FDIC-protected checking account that works much harder — all for just $3/month.

Acorns Found Money Feature

One of the unique and useful tool of Acorns is Found Money. When you shop with one of Acorns 350+ Found Money Partners, they give bonuses that go into your Acorns Invest account.

It is important to shop at Acorns Found Money Partner Stores with a credit card or debit card that you will link your Acorns Core Account. And this can help you a lot in investing your money.

Acorns provides you a free extension “Found Money” that will help you in earning money. But, it is necessary to open an investment account in order to use the found money.

Most offers will arrive in your Acorns Invest account within 60-120 days, but each offer is unique. You can see the status of your Found Money in the history screen in your Acorns app.

Some names of current Acorns Found Money Stores are mentioned below, you can check all the Acorns Found Money Stores in their official website

  • Airbnb
  • Barnes & Noble
  • Blue Apron
  • Dollar Shave Club
  • Earnest
  • Expedia
  • LifeLock
  • Macys
  • Nike
  • Stitch Fix
  • Walmart
  • Direct TV
  • Groupon
  • Sephora
  • Chevron
  • Liberty Mutual Insurance
  • Warby Parker

Acorns Pricing

Acorns Lite, Acorns Personal, Acorns Family are three types of accounts to start with Acorns, each one has its own price and feature.

Acorns Lite

Acorns lite has a price of $1/month which is the least price of Acorns plan. With Acorns lite you can only access Acorns investment account. You can also put your spare change to work with Round-Ups.

You also get a cashback or bonus investments whenever you’ll make any purchase from your linked card at the 350+ acorns found money partners.

It also provides hundreds of articles from financial experts to grow your knowledge.

Acorns Personal

With the help of Acorns Personal subscription, you can access to retirement account, which Acorns calls the Acorns Spend Later Feature.

Acorns retirement account is the easiest way to save money for retirement, earn tax advantages, updated regularly to match your goals. You also get an Acorns metal debit card and money advice.

It also provides checking account that helps to save money with no account fees and 55,000+ fee-free ATMs nationwide and around the world, earn more with up to 10% bonus investments and invest automatically with built-in investment and retirement accounts

Acorns Family

With the help of Acorns Family Subscription, the whole family can join in with investment accounts for kids known as custodial accounts.

The investment account for kids helps to Open in under 3 minutes and Multiple kids at no added cost. It helps to get automatic recurring investments, exclusive bonus investments, family financial advice, potential tax savings while they grow, and flexibility with the funds.

Why one should I buy?

Which one should I buy? Everyone has the same question in mind. The answer is easy it depends on your necessity and use. If you are going to invest only then go for Lite Plan.

But, if you want advanced features and different accounts then go with the Premium Plan for $3 per month with full features and uses.

Acorns Security

The most important thing about any investment app is its security. Now the question arises, is the Acorns App Safe?

Acorns are serious about security. Acorns have taken many steps to help keep your account and information protected when you create an account and use Acorns.

Bank-Level Security
Multiple layers of security to safeguard your information, including secure servers.

Acorns Pros and Cons

Although Acorns is the best app for micro saving and investing still there are some pros and cons of acorns app.

Pros of Acorns

  • Pro: You can Start Investing and Saving With Low Deposit – Since Acorns is the best app for micro saving and investing, it allows people to start investing and saving with a low deposit. You can start your investing just $5 that makes it best for beginners
  • Pro: Automatically save and invest your money – Acorns provides different features that helps their users to automatically save and invest their money. It has a Round-Up Feature that helps you to save your money whenever you shop in any shop with acorns linked card and automatically invest that money in the Acorns Investment account.
  • Pro: Get CashBack for Shopping at Online Partner Store – Acorns have a Found Money Feature that helps users to get cashback whenever they make a purchase at any acorns partner store with acorns linked card.

Cons of Acorns

  • Con: High Fees on Large Accounts – As I have already mentioned that Acorns is good for micro-investing, so when you invest a low amount of dollars, comparatively the fees are not that much. When you invest under $5000 with Acorns, only $1 per month is applied. But when you invest more than $50,000, 0.25% is applied that costs you $125 of fee for a $50,000 investment for a year.
  • Con: Small Investment Portfolio – Acorns is a micro-saving app, you can invest and save your spare change. And because of this reason, it will not be profitable for you to invest high money in your account.

What do people say about Acorns?

“Acorns is my favorite money app because it makes it simple and cheap to make a small investment.” – Business Insider

“The hard part is putting the money aside. Apps like Acorns and Digit do that for you.” – CNN Money

“You think you need thousands of dollars to invest, it’s for the rich folks… not the case anymore because there’s Acorns”Good Morning America

What is Sofi Invest?

Sofi Invest is a investment platform that helps people to trade stocks, bonds, ETFs, cryptocurrency or automated investing. It helps new investor to build their confidence by starting their investment with SoFi.

But, along with this, Sofi is a different kind of finance company that helps people to their money right by providing them help into investment, Refinancing Student Loan, Private Student Loan, Personal Loans, Home Loans.

Sofi Invest provides various features such as automated investing, active investing, Retirement Accounts, Invetment in Crypto, Stock Bits and ETFs.

To fund your SoFi invest account, link your sofi money account, checking or savings account. After linking your account, initiate an account transfer (ACAT), rollover, check or wire.

You can also set up a recurring deposit to make sure you have money ready for when you want to buy, or make a one-time deposit at any time. It will usually take 1-2 business days to clear.

Sofi Active Investing

With the helps of SoFi Active Investing, you can start your investment journey with no account minimum and no trading fees that helps new investors to start investment.

If you’re not much smarter at Investment, don’t worry, Sofi also helps you to invest your money with market updates and news. To get connected with the different people, you can connect with SoFi members at exlusive evenets to gain more experience.

Just like other stock trading apps, you can create your personal watchlist and follow the stocks that matter most to you to stay up to date with real-time investing news, curated content, and other relevant data

SoFi Stock Bits

The other best benefit of Sofi is you don’t need to buy a whole share if you don’t want to. SoFi introduces Stock Bits, stock bits are fractional shares that let you buy a part of stock from different companies, you can buy any part of a stock that has more than $1 value.

So, with the help of Stock Bits, it is possible to buy stocks from your favorite companies like Apple, Amazon and Tesla without investing lots of dollars.

But there are certain limitation, you can only buy stock of companies those are available. When you buy any stock, you’ll get an option of stock bits, if that is available there, you can buy a fraction of share, otherwise no.

You can use stock bits to buy ETFs too. And there are no additional trading fees for Stock Bits. With the help of Sofi Stock BiTS, you can diversify your money in different companies without investing lots of dollars.

Also Read : SoFi Automated Investing Review

Sofi Automated Investing

With the help of SoFi Automated Investing, people who don’t know much about the stock market, cryptocurrency can also invest their money.

It can help you a lot when you don’t want to spend your time researching the stocks. You don’t have to follow the market to earn a great return. With automated investing, SoFi itself will build and manage a portfolio for you without charging a management fee.

With the help of automated investing, you can achieve your goals, rebalance your investment, and diversification of your money.

It will help you to save money for retirement by providing a retirement account, a down payment, or more investment.

You can set your investment according to you even in the automated investing, rebalance your investments by adjusting your stock and bond funds on a quarterly basis.

As there is high risks in buying stocks, bonds and cryptocurrency, sofi automated investing diversify your investments so that your money is allocated across different kinds of financial investments.

Investment in Cryptocurrency with Sofi

Along with stocks, bonds, and ETFs, you can also invest your money in cryptocurrency. You can start a cryptocurrency investment at $10. Once you will start cryptocurrency investment, you’ll get a bonus of $25.

When you invest in the stock market, you have an opening and closing time. But you can invest in cryptocurrency at 24/7.

Cryptocurrency Investment with SoFi is 100% secured and safe. SoFi invest is a secure platform that ensures your holdings are protected against fraud and theft.

SoFi will charge you up to 1.25% on cryptocurrency transactions. On a purchase, the markup is added to the market price from the exchange, and SoFi submits a market order trade.

Also, the crypto markup amount can be changed at any time by SoFi and will ensure that the amount listed here is accurate.

To start trading cryptocurrency with SoFi, first, you need to fund a SoFi Invest active investing account through SoFi.com, pending that you meet our eligibility requirements.

Once your account is funded, you can easily trade crypto, stocks, and ETFs through SoFi Invest once it’s available.

SoFi ETFs

Along with stocks and cryptos, SoFi also provides an option to invest your money in the ETFs. Ther are some ETF options available for SoFi memebers.

  • SoFi Select 500: Buy a share of the SoFi Select 500 (SFY) and get a piece of the 500 largest publicly traded U.S. companies weighted by growth signals. This ETF is fee-free* for at least the first year and is included in SoFi automated investing portfolios.
  • SoFi Next 500: Invest in 500 mid-cap U.S. companies weighted by growth signals with the SoFi Next 500 (SFYX). This ETF is included in SoFi automated investing portfolios and will be fee-free* for at least the first year.
  • SoFi 50: The SoFi 50 ETF (SFYF) invests in the top 50 widely held stocks on SoFi Invest. This low-fee (0.29%) ETF is an easy way to get exposure to what members are currently buying.
  • SoFi Gig Economy: The SoFi Gig Economy ETF (GIGE) is a low-fee (0.59%) way to invest in the high-growth tech companies you use and love soon after they IPO.

Sofi Security

SoFi invest is a secure platform that ensures your holdings are protected against fraud and theft. It keeps your crytpo, stocks, ETFs safe.

The securities and cash that SoFi Securities holds in your brokerage account are protected by SIPC in the event of a broker dealer failure up to a maximum of $500,000 per client for securities.

It includes up to $250,000 per client for cash held in the account. SIPC coverage does not protect against investment losses from market action or volatility.

Pros and Cons of Sofi

Let’s know what are the pros and cons of Sofi.

Pros of Sofi

  • PRO: 0% Trading Fee.
  • PRO: Buy a fraction of the share with the help of stock bits.
  • PRO: Low-cost ETFs.
  • PRO: Diversify your money by investing in bonds, ETFs, and crypto along with stocks.
  • PRO: Get Professional Advice for Investment.

Cons of Sofi

  • Con: Can’t transfer your crypto to an external wallet.
  • Con: 1.25% markup on crypto investment.
  • Con: Few numbers of stock and ETFs are available to trade.

Bottom Line For Acorns Vs Sofi

Both Acorns and Sofi have its own useful feature and tools to invest and save your money.

Sofi provides no commission and no management fee that helps people to start their investment without any trading fees. It also has a stock bits option which helps to buy a fraction of shares. It also provides automated investing that helps to automatically diversify your portfolio. You can also choose stock on your own.

Acorns help people to save and invest their money at a low level, it is designed for daily saving and investing. With Acorns Round-up and Found Money Feature, it becomes to save and invest your money easily. But, you can’t invest your money on your own, it automatically invests your money in 1 of 5 prebuilt portfolios.

2 COMMENTS

  1. Thanks for sharing this comparison! I learned something new today about Acorns, I had no idea they charged so much for investors who have $50k+ with them! Sure, 0.25% doesn’t sound like a lot but that amount really compounds over time and is surprising considering there are so many other options like Vanguard.

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