We chose Acorns as the best robo-advisor provider of custodial accounts due to the unique provider of custodial accounts due to the unique and valuable features its robo-advisor offers to help build wealth for the benefit of the child.
Acorns was founded in 2012 and is headquartered in Irvine, California. Due to its rich features and beginner-friendly approach, it is our choice for parents and guardians seeking to automate their child’s custodial accounts.
Acorns custodial accounts can be opened with a $0 minimum deposit. While stocks and ETFs don’t have a fee associated with them, Acorns levies monthly subscription fees: Acorns Early Lite costs $8 per month, and Acorns Gold costs $12 per month. The higher the subscription, the better the features, amenities, and perks a user is entitled to.
Even though Acorns charges a subscription fee, it has a lot to offer that many other robo-advisors do not. For instance, custodians have access to an app and the ability to manage multiple accounts, with up to four debit cards. Each account earns a 1% match on the first $7,000 invested.
Gold plans get a 3% match on contributions to their children’s IRA and the spare change service Acorns offers. Custodians can link a credit or debit card to their Acorns account and deposit spare change into that account on expenditures outside of Acorns by rounding up to the nearest dollar.
Another plus is that Acorns offers educational opportunities in the form of lessons, quizzes, videos, stories, and so on to help children of all ages learn about topics such as investing, retirement, borrowing, and planning. However, Acorns does not offer research tools or proprietary financial reports from services such as Morningstar and Argus. Custodians should also understand that the robo-advisor’s investment selection is limited to stocks and ETFs.
Read the full Acorns Review.