Understanding Acorns and Why You Might Close Your Account
Acorns is a micro-investing platform that launched in 2014 and has grown to serve millions of users. The service works by rounding up your everyday purchases to the nearest dollar and investing the spare change into diversified portfolios. For example, if you buy coffee for $3.50, Acorns rounds it up to $4.00 and invests the $0.50 difference. Many people find this approach helpful for building investment habits without thinking about it constantly.
Understanding Chase Credit Cards and Your Options →
However, there are several reasons why account holders decide to close their Acorns accounts. Some users discover that the monthly subscription fees—which range from $1 to $5 depending on the plan level—eat into their returns, particularly if they have smaller account balances. Others find that the round-up investment method doesn't match their financial goals anymore, or they prefer to manage their investments through different platforms. Some people consolidate their accounts when they change jobs or move to a new financial institution. Still others simply want to redirect their money toward paying down debt or building emergency savings instead of investing.
Understanding your reasons for closing helps you make the right decision about timing and where to move your money next. This guide walks through the actual process of closing an Acorns account, what happens to your money, and what to consider before you take this step. The process itself takes only a few minutes, but understanding the details beforehand prevents confusion or mistakes.
Practical takeaway: Before closing your account, review your current balance, recent performance, and any pending transactions to understand exactly what you're working with.
Steps to Close Your Acorns Account
Closing an Acorns account follows a straightforward process through the mobile app or web platform. To begin, open the Acorns app on your phone or log into the website using your credentials. Navigate to the Account or Settings section—this is typically found in the menu at the bottom of the app or in a dropdown menu on the website. Look for an option labeled "Close Account," "Delete Account," or "Account Settings." Acorns makes this relatively visible since they want to respect users' choices about their money.
Understanding the Ulta Credit Card Before Applying →
When you select the close account option, Acorns will display important information about what happens next. The platform will show you your current account balance and explain that closing your account triggers the liquidation of your investments. This means Acorns will sell all your holdings and convert them to cash within one to three business days. You'll receive a confirmation message asking you to verify that you want to proceed. This confirmation step exists to prevent accidental account closures.
After you confirm, Acorns will begin the liquidation process. The company will sell your investments at current market prices—you cannot control the exact timing of these sales, and prices may fluctuate slightly during this period. Acorns then transfers the cash proceeds back to the bank account or payment method you originally linked to your account. This transfer typically takes three to five business days, though it may take longer depending on your bank's processing speed. During this waiting period, your account remains open but inactive.
Once the cash transfer completes, your account closes automatically. Acorns sends a final confirmation email indicating that your account is closed and provides a summary of the transaction. At this point, you no longer have access to the account, and you won't be charged any additional fees. If you ever want to use Acorns again in the future, you can create a new account with the same email address or a different one.
Practical takeaway: Write down the current date you initiate the close request, then check your linked bank account in five to seven business days to confirm the funds arrived. Keep the confirmation email for your records.
What Happens to Your Money During the Closing Process
When you close an Acorns account, your invested funds don't disappear—they get converted back into cash and returned to you. However, this process involves several steps that take time, and you should understand what's happening behind the scenes. Your money passes through several stages: the liquidation stage, the settlement stage, and the transfer stage.
Learn How to Log Into Your TJ Maxx Credit Card →
During liquidation, Acorns sells all your investments. If you have $1,250 invested across multiple funds, Acorns places sell orders for all of these positions. The sale happens at whatever the current market price is when Acorns processes your request. This is important because market prices change constantly. If you close your account on a day when markets are down, you'll receive less money than you would if you closed on a day when markets are up. For example, if your portfolio was worth $1,250 on Monday but market decline drops it to $1,200 by Wednesday when Acorns processes the sale, you receive $1,200. This isn't a fee—it's simply the market value at the time of sale.
After the sell orders execute, Acorns then waits for settlement. Stock and fund transactions typically settle within two business days, meaning the money from your sales officially moves into Acorns' holding account. During this settlement period, your money sits in Acorns' systems but hasn't yet transferred to your bank. This is a standard financial industry process and isn't specific to Acorns.
Once settlement completes, Acorns initiates the transfer to your linked bank account or debit card. This step usually takes one to three additional business days, depending on your financial institution. Some banks process transfers faster than others. For example, a transfer initiated on a Thursday might arrive at a bank on Friday, while another bank might take until Monday. If you initiated the close on a Friday afternoon, you might not see the funds until the following Wednesday or Thursday due to weekend delays and bank processing times.
Throughout this process, you don't lose money to Acorns—the company simply converts your investments back to the cash value they represent. However, you do lose any potential gains that might have occurred during the waiting period, and you also lock in any losses if the market drops during liquidation. This is why timing matters somewhat, though trying to time the market perfectly is generally not a successful strategy for most investors.
Practical takeaway: Budget 5-10 business days from the moment you request closure until you see funds in your bank account, accounting for weekends and bank processing delays. If you need the money faster, consider whether you can wait or whether you need to pursue alternative sources of funds.
Tax Considerations Before Closing Your Account
Closing an Acorns account has tax implications that you should understand before you proceed. When Acorns liquidates your investments, you may owe capital gains taxes on any profit you made. Capital gains are the difference between what you originally invested and what your investments are worth when you sell them. For example, if you invested $500 and your portfolio grew to $575, you have a $75 capital gain. The IRS taxes this gain, and you'll owe taxes even though you haven't received the money yet—the tax obligation occurs when the investment is sold.
Learn About Paying Your Goodyear Credit Card Bill →
There are two types of capital gains: short-term and long-term. Short-term capital gains apply to investments you held for one year or less, and these are taxed at your ordinary income tax rate—potentially as high as 37% depending on your income level. Long-term capital gains apply to investments held for more than one year, and these receive more favorable tax treatment with rates of 0%, 15%, or 20% depending on your income. Since Acorns round-up investments often accumulate over time, you may have a mix of short-term and long-term gains.
Acorns will send you a Form 1099-B or similar tax document reporting your investment sales and any gains or losses. This typically arrives in January or February for sales that occurred during the previous tax year. You must report this information on your tax return. If you don't receive this form or have questions about your specific tax situation, you should consult with a tax professional or contact Acorns directly—they have tax support resources available.
It's also possible that your account shows losses rather than gains. If your investments declined in value, you have capital losses. These losses can offset capital gains from other investments or, in some cases, offset other income. This is actually beneficial from a tax perspective, though it's not pleasant to see your account value down.
The timing of account closure matters for tax purposes. If you close your account in December versus January, the sales and resulting tax obligations fall into different tax years. This doesn't change the total taxes you owe,