Just saw this in my bank account and thought id let others know. Must have only started since the changeover. Considering over 15 months at $10 per week and making a dividend of .3c to .18c seems a lot to charge per month.
Raiz (Previously Acorn) Maintenance Fee of $1.25 Per Month
Roofus on 06/08/2018 - 08:36
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As @sw00p points out, it's definitely not a new fee.
As an example, this review of Acorns from June 2017 mentions the $1.25 per month fee.
The $1.25 fee (for accounts with less than $5000) is clearly mentioned in the product disclosure. Above $5000, there's a 0.275% annual fee.
It's probably not worthwhile for someone starting from scratch and only saving $10 per month. You may be better off with a fee free bank account for those low savings levels.
Personally, I wouln't bother with Raiz until I had at least $1000, at that point the $1.25 per month fee works out at 1.5% per annum.
1.5% fee is still pretty high…
I would just add that automated payments, and the act of having the funds in another location (where they are not immediately liquid) for me made the fee more than worth it in terms of habit forming and saving money.
(Edit: Although agree, you could do this with a high interest saver).
I just thought it was high in terms of what you get back, I have it on an account I don't look at much and noticed it, I know its not much money each month but definitely adds an extra expense
I joined Acorns on their launch day back in 2016? This fee existed back then and I was charged it. Closed my Acorns account about a year later and just bought ETFs instead.
Spaceship has a similar product with no fees on a balance under $5000, although I imagine that is just to attract people and they will introduce a fee at some point. https://www.ozbargain.com.au/deals/spaceshipinvest.com.au
It isn't quite like swapping between bank accounts to chase the highest interest rate though, hard to swap between apps based on fees if it is not an ideal time to sell.
It is tax deductible.
Mate, this fee has existed for as long as I have been using Acorns, approximately 18 months.