Acorns Micro Transaction Investing

Acorns.com is a new startup that allows you to tie your banking transactions to an investment account.  There isn’t much information on it yet, but the concept is rounding up your transactions to the nearest dollar and putting it into an investment account.

I’m sure many banks have the same, but with Bank of America if I have a transaction for $5.15 it rounds the transaction up to $6.00 even.  The remaining $.85 is then deposited into my savings account.  With Acorns it will take that $.85 and invest it.  Without all the details being released it’s hard to speculate on exactly how it will work.  While the investing side may be higher risk the reward would generally be better than what you would earn in a normal savings account.

You can sign up for iPhone or Android on their homepage and await more details.  I’ll be keeping my on it as it seems like a clever new way to invest smaller amounts without having to be a market guru.