Acorns Australia now has a $5 referral bonus for September for new accounts.
Acorns works by rounding up your purchases to whole dollar amounts and investing it.
The fees are as follows:
$1.25 a month for balances below $5,000
0.275% PA if your balance is above $5,000
$5 each for referrer & referee (after minimum $5 investment).
so what are the monthly costs for this service?
updated post details. thanks OP
Will I make enough interest within the first month to cover the 1.25% fee?
I have been with them 8 months and i'd down $1.85 however i've saved $421 that i wouldn't have normally so its still a win.
So you've made no money, but it stops you from spending it? Fair enough.
It will rise and fall just like the regular stock market. You can choose your invest portfolio, mine is moderately aggresive.
I should also note its $1.25 not %
I like the idea. Some people need it. Just like they don't need a credit card but will use it to limit their spending, they just need that extra encouragement.
Someone once did an analysis using historical data and found that for an agressive fund, you will generally need at least $300 minimum before you will start earning more than fees.
That being said, as others have mentioned, it is a fairly painless way of saving if you otherwise wouldn't. So you may find that initially you will 'lose money' but you will still be saving money which you might have otherwise just flittered away without thinking about it.
invested approx 2400 with them, 300 a week. market return was 4.20, which is not bad considering recent tank of stocks. they offer automatic round ups, which helps you save in incremental value. i recommend 500-4999, and for any bigger portfolio I would recommend self managed or vanguard for investing. overall, its not too bad though
The found money doesn't work.
Was meant to get money for purchasing a airfare through Virgin, it never came.
I have used Acrons for 6 mths, guess what, $1.83 with $753!!!! Putting in any bank would be more beneficial! Plus you have to pay the monthly fee too!
Here's a good spreadsheet I found that helps you realise the fees:
https://docs.google.com/spreadsheets/d/1CC2Ss8zHB8O95aSK-VdS…
Change the Underlying Issuer Fees for other portfolios.
Do they sell my data?