Announcing the Acorns Emergency Fund

The road to financial wellness isn’t always a straight line. You’re bound to hit a few curves along the way that can throw you and your budget for a loop. That’s why Acorns is introducing a new Emergency Fund feature, available to all Acorns subscribers who have an Acorns Checking account and set up direct deposit. With savings goals and progress tracking, Acorns Emergency Fund helps you build up a reserve bit by bit, so you can have a headstart on any out-of-budget expenses that come your way.

What is Acorns Emergency Fund?

Acorns Emergency Fund helps you set money aside for emergencies, separate from your investments or spending money. Just pick your savings goal and Acorns will track your progress as you slowly build towards your target.

And just like your Invest, Later, and Early accounts, you can add to your Emergency Fund automatically! Use Acorns Smart Deposit feature to allocate a portion of each paycheck to your Emergency Fund every time you get paid.

The Acorns Emergency Fund is a non-interest-bearing demand deposit account.

Benefits of an Emergency Fund

Having no emergency savings can really cost you. Did you know that 49% of U.S. households say they’d have to rely on credit to cover an unexpected expense, according to The Pew Charitable Trusts?

Using high-interest credit cards can mean that you end up paying more for out-of-budget expenses. Plus, those credit card payments eat up your extra income and slow down your investing.

But with an Emergency Fund, you can create a financial safety net that can help keep your budget, your cash flow, and your investments on track when the unexpected arises.

Unexpected expenses

Life is full of unexpected expenses: medical bills, auto repairs, home upkeep, or unplanned travel. But an Emergency Fund can help you get over those bumps without tanking your budget. As a rule, most financial planners recommend setting aside 3 to 6 months’ worth of expenses, but even having a few hundred dollars on hand can make a huge difference.

How to fund your Acorns Emergency Fund 

There are two easy ways to build up your Emergency Fund.

Got a little extra cash on hand? Maybe from a tax refund or a work bonus? You can transfer money to your Emergency Fund account with a One-Time deposit from your Acorns Checking account.

• To make a One-Time deposit into your Emergency Fund, go to your Acorns Checking account and tap on “One-Time” and follow the prompts.

You can also deposit funds into your Emergency Fund every time you get paid with our Smart Deposit feature. That way, a small amount of each paycheck can go towards your saving goal automatically!

1. To turn on Smart Deposit, start by moving your direct deposit over to Acorns Checking. (Use this link and we’ll help you make the switch!)

2. Once your direct deposit arrives, you’ll be prompted to choose how much of each paycheck to distribute to your Emergency Fund, along with your Invest, Early, and Later accounts.

If you already have direct deposit set up with Acorns…

1. Go to your Acorns home screen and tap 'Bank'

2. Tap 'Direct deposit' to edit your Smart Deposit settings and choose how much you want to allocate to your Emergency Fund, along with your Invest, Early, and Later accounts.

3. Once you've saved your settings, Smart Deposit will automatically distribute your funds the next time you’re paid

How to Withdraw Funds From Your Acorns Emergency Fund Account

You can withdraw money from your Emergency Fund at any time and funds will be immediately available in your Acorns Checking account.

Here’s how to initiate a withdrawal from your Emergency Account:

1. Got to your Acorns home screen, tap “Save”

2. Tap the “Withdraw" button

3. Enter the amount you'd like to withdraw & confirm the request

Don’t have Acorns? Sign up today!

If you’re ready to start automatically saving with an Emergency Fund, you can sign up for Acorns in under 5 minutes. With an Acorns account, you can invest your spare change, open investment accounts for your kids, and so much more!