Make your money work as hard as you do
When you earn tips, it can be tough to build a consistent financial plan. Some days you make more. Some days you make less. With rent, gas, and groceries to cover, you might not feel comfortable setting anything aside. Plus, you often don’t have the benefit of a 401(k) plan or employer match to help you prepare for retirement.
You work hard for your money — but what if there was an easy way to make sure your money was working hard for you, too?
If you invested one $10 tip a day for 45 years, your money could grow to over $1 million, assuming a hypothetical 8% annual return.* It may not seem like much, but small habits can have a big impact when you stick with them.
Invest My Tips is a new Acorns feature built to make that habit easy. This guide covers how it works, what happens to your money, how the 1% match works, and how to decide which tips to invest.
Why tips are a good foundation for investing
Most advice about building wealth starts with “set a little aside every month.” That’s hard when your income moves with the season, the day of the week, or the line out the door.
Invest My Tips works differently. It piggybacks on a habit you already have — earning tips. Nothing about your day changes, and there’s no new routine to remember. You’re just pointing some of what already comes in toward your future.
How small tips can grow over time
When you invest your money, you’re giving it a chance to earn more money. Over time, that money can start earning money, too — that’s called "compounding."
So say you invest $100 and it earns 8% a year. You’d have $108. The next year, that 8% applies to $108, not $100, so you’d earn $8.64 instead of $8. It’s a small difference at first. Over decades, it can add up.
Compounding can work on your tips, too. Let’s go back to that $10 a day example. That’s about $3,650 a year, or roughly $164,000 of your own money over 45 years. But if you invested those tips, your money could grow to over $1 million, assuming a hypothetical 8% annual return. The earlier a tip is invested, the more time it has to compound, which is why starting small and starting soon can matter more than starting big later.
What is Invest My Tips?
Invest My Tips is a quick and easy way to invest your money automatically, and help fund life’s goals.
When you activate Invest My Tips, you’ll get a personalized QR code. When a customer scans it, they land on your tipping page, where they can tip with Apple Pay, Google Pay, or a debit or credit card. The tip goes into your Acorns Invest account and is invested for you automatically.
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Your customers don’t need an Acorns account or the app. They scan, tip, and go.
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You decide which tips to invest. Use your QR code when you want a tip to be invested.
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There are no processing fees. 100% of each tip goes into your Acorns account.***
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Your security is our priority. From day one, your money and investments are secured with SIPC protection up to $500,000 and industry-standard security.
Who Invest My Tips is for
Invest My Tips is built for people who earn tips, like barbers, hair stylists, nail technicians, and more. It’s a good fit if:
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Your income changes week to week. Tips don’t come in on a schedule. Investing your tips lets you put money to work on the days it makes sense, without a fixed monthly amount to hit.
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You want to start small. You don’t need a big lump sum to start investing. You can start with just one $5 tip, and you decide how often to invest your tips.
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You get a mix of card and cash tips. You can route some tips through your Invest My Tips QR code to invest in your Acorns Invest account and keep the rest on hand.
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You want something that fits into your day. No moving money around after hours. You can build your future in the background of your regular work day.
How Invest My Tips works
You can invest your tips in just a few seconds:
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Your customer scans your QR code. You can pull up your Invest My Tips QR code on your phone or we’ll send you QR code stickers to place at your station or register.
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They send you a tip. Your QR code takes your customer to your tipping page, where they pick an amount to tip and how they want to pay — Apple Pay, Google Pay, or debit or credit card. The minimum tip is $5 and the maximum tip is $250. They’ll see a confirmation when it goes through, and you’ll get a notification that a tip is on its way.
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We’ll invest your tips for you automatically. There’s nothing for you to move or transfer.
What happens to your money
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It’s 100% invested. The full tip goes into your Acorns Invest account, with no fees or deductions taken out.*** Invest My Tips is included in all Acorns plans.
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Processing typically takes 3 to 5 business days. While a tip is processing, it will show as “transferring” in your account.
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Your money has a chance to grow. As soon as your money is invested, it has a chance to start earning returns. The longer it stays invested, the more of a chance it has to grow.
Acorns is investing in you with a 1% match
Your customers are investing in your future — and we want to help out, too! When you invest your tips through Acorns, we’ll add a 1% match on qualifying tips. That’s extra money on top of what you earned.
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The match covers up to $7,500 in tips per calendar quarter, for a maximum of $75 per quarter.
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Match funds are typically deposited into your Acorns Invest account within 15 days of the following quarter. Timing may vary.
There’s nothing extra to do to qualify. You just need an active Acorns Invest account in good standing and your tips need to have finished processing.**
You don’t have to invest every tip
You’re in control. Invest the tips you want to give a chance to grow and take the rest the way you do now to pay bills, build your emergency fund or cover daily expenses.
Starting small is fine. Even one tip a day can make a huge impact over time. And you can always invest more when it makes sense for you.
A quick note on taxes
Tips may be taxable as income and withdrawing money from your investment account can have tax implications too. It might be a good idea to talk with a tax professional about your situation.
How do I get started with Invest My Tips?
You can sign up for Acorns and activate Invest My Tips in just a few minutes. As soon as you do, you’ll get your very own QR code so you can start putting your customers’ tips to work right away! Plus, Acorns will recommend an expert-built, diversified portfolio for you, so you don't have to pick investments yourself.
Get started with Invest My Tips
Frequently asked questions
What is Invest My Tips?
Invest My Tips is a quick and easy way to invest the tips you already earn automatically, and give them a chance to grow toward life’s goals.
Does my customer need an Acorns account to tip me?
No. Customers don’t need an Acorns account or the Acorns app. They just scan your QR code and pay with Apple Pay, Google Pay, or a debit or credit card.
Does Invest My Tips cost extra?
No. Invest My Tips is included in all Acorns plans, and 100% of each tip goes into your Invest account with no additional fees or deductions.
How long does it take for a tip to be invested?
It typically takes 3 to 5 business days to process. During that time, the tip shows as “transferring” in your account.
Can I withdraw my tips?
Yes. Once a tip finishes processing, you can withdraw it. Since tips are invested, your account value at time of withdrawal may be worth more or less than the original invested amount. We always recommend investing for the long term, and withdrawals may have tax implications.
How does the 1% match work?
We match 1% of qualifying tips, up to $75 per quarter, and deposit it into your Invest account the following quarter. You need an active Acorns Invest account in good standing, and your qualifying tips must have finished processing.
Do I have to invest every tip?
No. You choose which tips go through your QR code and which you take the usual way.
Are my tips taxable?
They may be. Tips and 1% match amounts can count as taxable income, so it’s worth talking with a tax professional about your situation.
This material has been presented for informational and educational purposes only. The views expressed in this article 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. 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. Acorns is not engaged in rendering tax, legal or accounting advice. Please consult a qualified professional for this type of service.
Compounding is the process in which an asset’s earnings from either capital gains or interest are reinvested to generate additional earnings over time. It does not ensure positive performance nor does it protect against loss. Acorns customers may not experience compound returns and investment results will vary based on market volatility and fluctuating prices.
*Hypothetical calculation assumes $10 in daily contributions and an 8% fixed annual rate of return over a 45-year period. This hypothetical example is for illustrative purposes only and does not represent actual investment results. Subject to factors: customer’s accounts, age & investment settings. Does not include Acorns monthly subscription fees (minimum $4/month), which will reduce account returns over time, or other deposits or withdrawals. Results do not predict or represent the performance of any Acorns portfolio. Investment results will vary. No guarantee investment return will achieve 8% or any annual returns. Visit acorns.com for details.
**1% Match is a limited time offer paid on qualifying tips between $5 - $250, up to a total Match of $75 per quarter. Subject to daily ($1,000) and monthly ($7,500) limits. Paid quarterly in the following calendar quarter. Match cap is prorated for partial quarters. Must remain an eligible Acorns Customer in good standing until time Match amount is received. Terms apply and are subject to change: https://www.acorns.com/invest-my-tips-match/.
***Invest My Tips provides eligible Acorns customers with a personalized QR code to receive qualifying tips for eligible services they personally provide. Qualifying tips of $5 to $250 are directed to the customer’s Acorns Invest account and automatically invested, subject to daily ($1,000) and monthly ($7,500) limits. Included in Acorns subscription charge. Additional eligibility and terms apply. Visit acorns.com/invest-my-tips-terms. Terms for Tippers apply. Visit acorns.com/invest-my-tips-tipping-agreement/. Tipper’s card issuer or payment provider may impose its own fees, interest, or other terms.
Acorns Invest is an individual investment account which invests in a portfolio of ETFs (Exchange-Traded Funds) recommended to customers based on their responses to the Acorns investor profile questionnaire. The ETFs comprising the Acorns portfolios charge fees and expenses that will reduce a customer’s return. Investors should read each fund’s prospectus and consider the investment objectives, risks, charges and expenses of the funds carefully before investing.
Withdrawals from your Acorns investment account may have tax implications and are subject to a 3-5 business day settlement period. Tips may be taxable as income. Since tips are invested, your account value at time of withdrawal may be worth more or less than the original invested amount.
Automatic investing does not ensure a profit or protect against losses. It involves continuous investing regardless of fluctuating price levels.
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 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.
Acorns does not provide tax or legal advice, you should consult with a tax or legal professional to address your particular situation.
