How to Withdraw Money from Acorns: A Step by Step Guide From A User

We love using the Acorns investment app as a carefree solution to making simple investments with spare cash you have.

The app is fairly straightforward to use but most people have quite a few questions they need to be answered when they decide to withdraw their money.

Here we look at exactly how you can withdraw your money from Acorns and what the implications of that are.

How Can I Withdraw My Assets and Money From the Acorns Investment App?

There will be times when you simply need to get hold of any cash you have held up in whatever assets you’ve invested in.

The great thing is that the Acorns app does make it quite easy for you to withdraw your funds.

That’s one of the many reasons I love the Acorns app and consistently recommend it to those wanting to make carefree investments without any of the bureaucracy associated with traditional investing.

Withdrawing from the app goes a little something like this…

Step-by-step guide to withdrawing from the Acorns app

  • Step 1: Log into your account on your smartphone or PC/MAC
  • Step 2: Select the type of account you use (i.e either “Invest” or “Later”)
  • Step 3: Pick “withdraw”
  • Step 4: Enter the figure your wish to withdraw
  • Step 5: Click “withdraw” and confirm

How Long Does it Take To Withdraw Funds From My Acorns Account?

There can be some short delays simply because regulatory legislation provides there must be a two-day “settlement period” following the sale of your shares.

However, provided you action your request before 11 am the initial request should be processed that day.

11 am may seem quite early but Acorns needs time to sell your shares and if you place your request after this time it will usually be dealt with the next day the markets are open.

Most transactions occur within 3-6 business days so you should receive your funds into whichever account you’ve provided within that timeframe.

Can I Withdraw From Acorns Instantly?

You cannot withdraw instantly due to the regulatory requirements which provide for the 2 day settlement period upon sale of your assets.

As above, expect to wait for 3-6 business days to receive your funds.


Is There A Penalty For Withdrawing My Funds Early From The Acorns App?

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There are no penalties for withdrawing your funds from the “invest” part of the app.

Are There Any Fees or Costs for Withdrawing From Acorns?

There are no withdrawal fees, commissions, or other costs when withdrawing your investment from Acorns.

But it’s important to remember that you must pay any capital gains tax on any gains you have made since you joined.

With the “later” part of the app which is like a retirement account, IRS rules are different.

Any “early withdrawals” from your “later” account before age 59 1/2, will mean you will have to pay normal income tax on your withdrawal from that account and a 10% early withdrawal penalty in addition.


Is it Bad to Withdraw Money from Acorns?

There’s nothing to pay Acorns but, as above, you will need to pay relevant taxes and you will miss out on the tax benefits of the “later” account if you pull your money out early.

Clearly, this will cost you more money and you will have lost the opportunity for your investments to grow.

As the old saying goes “you haven’t lost anything until you sell”.


How Can I Permanently Delete My Acorns Account?

To delete your account you do the following:

Step-by-step guide to Deleting Acorns Account

  • Step 1: Log into your account on your smartphone or PC/MAC
  • Step 2: Click your profile
  • Step 3: Pick “settings”
  • Step 4:Choose “my subscription”
  • Step 5: Click “withdraw” and confirm

Please note that if you haven’t sold your investments, Acorns will sell them for you and then transfer the money to your account within 3-6 business days.

What Happens to My Acorns Account Once It’s Been Deleted

In addition to Acorns returning your proceeds, after deletion, your account will become inaccessible on your Android or iOS device.


Final Thoughts

Withdrawing from the Acorns app is fairly straightforward and shouldn’t cause you too much agro!

It’s important to remember the tax implications especially if you’re withdrawing from a “later” account.

For professional advice on any investments, always speak to a qualified financial adviser, tax attorney, or CPA.


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About the author

Oliver graduated from law school in 2008 and has practiced exclusively in the field of civil litigation for the last 10 years. He has a wealth of experience and expertise in litigation involving complex quantum and large financial losses. He has achieved numerous 7 figure settlements and has been involved in multi-billion dollar class-action consumer lawsuits against companies such as the Volkswagen Group. Away from the law, he is a personal finance writer, having been featured in key publications such as Yahoo Finance, GO Banking Rates, NewsBreak, MEL Magazine, and many more.



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