Acorns Checking is Acorns’ online banking feature that our customers use to save and invest in the background of life. And when it comes to protection, Acorns Checking features the same insurance measures and methods traditional banks do to protect your money.
Yes. All Acorns Checking Accounts are insured by the FDIC (Federal Deposit Insurance Corporation) up to at least $250,0000 per depositor, per ownership category. FDIC insurance applies only to accounts held in the United States and its territories and possessions.
So what does that mean? Let’s say you deposit money in an FDIC-insured bank account. But for some reason (and in the very rare case), the bank goes out of business and is no longer able to give your money back. Since you deposited your money in an FDIC-insured account, the FDIC (an independent US government agency) will cover that money, up to $250,000. For more info, go to fdic.gov. Having FDIC insurance is common practice across all major banks in the US, and it’s just one of the many ways Acorns helps keep your money safe.
The Acorns website and the Acorns app are secured with 256-bit encryption. What does that mean? Well, Secure Sockets Layer (SSL) Encryption is designed to keep your information safe in three different ways.
First, 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.
Second, it authenticates both your device and our servers to make sure your data is going to the right place.
And third, it verifies that your data wasn’t tampered with along the way — kind of like the plastic seal on a bottle of iced tea.
Acorns is a member of the Securities Investor Protection Corporation (SIPC), a federally established organization that protects individuals’ investments (up to $500,000) in a brokerage firm. So for example, let’s say you use “Brokerage A” to buy stocks. If “Brokerage A” goes out of business, SIPC protects your investments. However, SIPC does not protect against market losses, commodities, or futures contracts (a legal agreement to buy or sell a commodity or asset at a specific price and time in the future). For more info, go to sipc.org and check out this article: What is the SIPC?.
Acorns is a saving and investing app that makes investing easy. Unlike other investing apps where you pick and choose stocks you want to invest in, Acorns does that for you by recommending a diversified, expert-built investment portfolio of ETFs designed for long term investing. To learn more, check out how Acorns works in this article that dives deeper into our different products and investing features.
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This material has been presented for informational and educational purposes only. The views expressed in the articles above are generalized and may not be appropriate for all investors. The information contained in this article should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. There is no guarantee that past performance will recur or result in a positive outcome. Carefully consider your financial situation, including investment objective, time horizon, risk tolerance, and fees prior to making any investment decisions. No level of diversification or asset allocation can ensure profits or guarantee against losses. Article contributors are not affiliated with Acorns Advisers, LLC. and do not provide investment advice to Acorns’ clients.