Acorns Checking is our banking feature that helps you save, spend, and invest. When it comes to protection, Acorns Checking offers the same level of security and peace of mind you’d expect from traditional banks.
Is Acorns FDIC insured? (And what does that mean?)
Acorns is not a bank, but the funds in your Acorns Checking account are FDIC-insured through our partner bank(s), up to $250,000 per depositor, in accordance with FDIC guidelines.
What that means
When you deposit money into your Acorns Checking account, your funds are held by our FDIC-insured partner bank(s). In the unlikely event that one of those banks were to fail, the Federal Deposit Insurance Corporation (FDIC) — an independent U.S. government agency — would protect your money, up to $250,000.
To find out more about FDIC insurance and coverage limits, go to fdic.gov. Having FDIC insurance is a common practice for all major banks in the US, and it’s also one of the many ways we make sure your money is safe.
Other ways Acorns keeps you safe
SSL Encryption
The Acorns website and the Acorns app are secured with 256-bit encryption. This encryption keeps your information safe in three ways:
1) SSL Encryption uses a secret code to transmit your data from your device to our servers. If someone intercepted your data, it would just look like a jumbled mess of numbers and letters.
2) It authenticates both your device and our servers to make sure your data is going to the right place.
3) It verifies that your data wasn’t tampered with along the way — kind of like the plastic seal on a bottle of iced tea.
SIPC Protection
Acorns is also a member of the Securities Investor Protection Corporation (SIPC), a federally established organization that protects individuals’ investments (up to $500,000, with a $250,000 limit for cash) in a brokerage firm.
That means that if a brokerage firm in your portfolio goes out of business, SIPC helps protect your investments. However, SIPC does not cover market losses or certain types of investments, like commodities or futures contracts.
To find out more about the SIPC, check out sipc.org or our article: What is the SIPC?
How Acorns works
Acorns is designed to make saving and investing effortless. Unlike other investing apps where you pick and choose stocks to invest in,
Acorns recommends a diversified portfolio of exchange-trade funds (ETFs) that are intended for long-term investing. These portfolios are built by experts and tailored to your goals, risk tolerance, and time horizon.
To learn more, check out this article on how Acorns works to dive deeper into our different products and investing features.
Want to start saving and investing with Acorns?
Sign up now and create your account — it only takes a few minutes!
This information is for informational purposes only and should not be considered as investment advice or a recommendation to buy or sell any particular security, strategy, or investment product. The contents of this article have been generalized, and the investments and strategies discussed may not be suitable for all investors. Any forward looking statements may not develop as predicted and are subject to change based on future market and other conditions.
Investing involves risk, including the loss of principal. Please consider your objectives, risk tolerance, and Acorns’ fees before investing. Investment advisory products and services offered by Acorns Advisers, LLC (Acorns), an SEC Registered Investment Adviser. Brokerage products and services are provided by Acorns Securities, LLC, an SEC registered Broker Dealer, Member FINRA/SIPC. For more information visit Acorns.com.
Acorns is not a bank. Acorns Visa™ debit cards and banking services are issued by Lincoln Savings Bank or nbkc bank, members FDIC. Acorns Checking clients are not charged overdraft fees, maintenance fees, or ATM fees for cash withdrawals from in-network ATMs. Please see your Acorns Subscription Center or Account Statements for a description of the fees you pay to Acorns for its services. Any balances you hold with Lincoln Savings Bank or nbkc bank, including but not limited to those balances held in Acorns Checking accounts are added together and are insured up to $250,000 per depositor through Lincoln Savings Bank or nbkc bank, Members FDIC. Acorns Checking is not FDIC-insured. FDIC insurance only covers the failure of an insured bank. If you have funds jointly owned, these funds would be separately insured for up to $250,000 for each joint account owner. Lincoln Savings Bank or nbkc bank utilizes a deposit network service, which means that at any given time, all, none, or a portion of the funds in your Acorns Checking accounts may be placed into and held beneficially in your name at other depository institutions which are insured by the Federal Deposit Insurance Corporation (FDIC). For a complete list of other depository institutions where funds may be placed, please visit https://www.cambr.com/bank-list. Balances moved to network banks are eligible for FDIC insurance once the funds arrive at a network bank. To learn more about pass-through deposit insurance applicable to your account, please see the Account Documentation. Additional information on FDIC insurance can be found at https://www.fdic.gov/resources/deposit-insurance/.
Acorns Securities, LLC is a member of SIPC. Securities in the account are protected up to $500,000. For details, please see www.sipc.org. SIPC does not protect against market risk, which is the risk inherent in a fluctuating market.
