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Acorn Account review

Spectrum Payment Services Limited was founded in 2007 to provide personal current accounts to clients, and subsequently in 2012 to provide SME accounts under the business names CardOneMoney and Acorn Account.

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About Acorn Account

Spectrum Payment Services Limited was founded in 2007 to provide personal current accounts to clients, and subsequently in 2012 to provide SME accounts under the business names CardOneMoney and Acorn Account.

Equals Group PLC purchased Spectrum Payment Services Limited in August 2017 in order to diversify and offer digital financial solutions to consumers and small companies. When Equal was founded, its major goal was to bring about a change in the way people acquired foreign currency by challenging incumbent suppliers to give greater value for money and convenience of access to their consumers.

Not only for personal account clients, but also for small enterprises, Acorn Account is a specialist in delivering accessible yet highly functioning current accounts. Itopensaccounts faster and with less hassle than high street banks since itdoesn't require credit checks, branch visits, or signatures.

In January 2019, Spectrum Payment Services Limited was granted Real Time Gross Settlement (RTGS) accounts with the Bank of England, gaining direct membership to the Faster Payments scheme, in addition to gaining agency services and joining the BACS direct debit scheme and the Current Account Switching Service.

Acorn Account Exchange rates and fees

When you use your Acorn card outside of the United States, you will be charged a fee. Outside the UK, ATM withdrawals cost £3.00 + 2.75% of the transaction value.

Exchange rate

Acorn Account's website makes no mention of whether it provides exchange rates as part of its services.

Transfer fees

You'll have online access to your account as an Acorn Account holder, as well as a UK-based account manager to help you manage your money. There is no charge to open an account.

When you change your money into a foreign currency, you will be charged transaction fees. When you use your prepaid card to conduct a transaction in a currency other than pounds, Acorns Account charges 2.75% of the transaction value.

For instance, if you spend £100 outside of the UK, you will be charged a £2.75 transaction fee. You may check the Mastercard website for currency exchange costs.

Additional costs

Fees for cash withdrawals:

  • Withdrawals from ATMs in the UK cost £1.50.

  • ATM withdrawals outside the UK cost £3.00 + 2.75 percent of the transaction value.

  • A cash advance within the UK costs £5.00.

  • A cash advance outside the UK costs £5.00.

A monthly fee of £14.50 is charged. This is paid in advance on a monthly basis. It is deducted from your account on the first of each month, allowing you to organize your money simply. For £5.00 per month, you may add a secondary cardholder.

How do Acorn Account transfer fees compare to using a money transfer provider?

The FCA has authorised and regulated Acorn Account as an Authorised Payment Institution (API) under the Payment Services Regulations. The primary distinction between an API and a bank and a specialist money transfer providers is that an API is not permitted to utilize a customer's funds for any reason, including lending. Other significant distinctions between a bank and an API include differing "Conduct of Business" and capital adequacy requirements.

Acorn Account pros and cons

The following are the advantages and disadvantages of Acorn Account:

Pros

It's simple to keep track of your spending and manage your monthly expenses with the help of an expert account manager.
There will be no credit checks. Individuals will not be evaluated based on their financial backgrounds.
With the Rewards Scheme, you may earn up to 3.5% in cash rewards.
Individuals who share expenses and budgets may find a shared account beneficial.

Cons

Each cash withdrawal costs £1.50.
For an account with two cardholders, the monthly charge is £14.50 or £19.50.
The maximum daily cash withdrawal limit from ATMs is £450.
With a £3 withdrawal fee plus a 2.75% penalty, it's expensive to use overseas.
There is no smartphone app available.
While you may check your balance through SMS, each query costs 15p.
Any funds in the account may be redeemed for a charge of £10.

Answers to key questions about Acorn Account

Here are some commonly asked questions about Acorn Account in case you have any further inquiries:

Can I open an Acorn Account in any country?
Does Acorn Account have an app?
Are there transfer limits?
What customer support options are available?
Can I use an Acorn Account debit card when travelling abroad?

How to open an account and transfer money with Acorn Account

You may easily create an Acorn Account™ online or by calling the company's UK call center. You may take use of features such as priority direct debits, an online and mobile account, free SMS notifications, and no rejected payment penalties.

Opening an account

It is simple to open an Acorn account. It'll need to confirm your full name, date of birth, and address to validate your identification and residence. Also, it does not need to do any credit checks on you.

Your account may be open in minutes if you complete out the online application available in their website or call an adviser.

Transferring money

You may pay bills or transfer money from your account via Direct Debit, Standing Order, or same-day/next-day Faster Payment, either online or by calling Acorn Account call center.

Additional Information

A four-digit pin will be assigned to your card, which may be changed at any Mastercard ATM. Acorn's online account service, which allows you to monitor transactions, make payments, and download statements, is secured by a unique password that only you know.

The Financial Services Compensation Scheme (FSCS), on the other hand, does not safeguard your money. Your funds are instead kept by Acorn's bankers. This implies that your money is already separate if something happens to Acorn. It is Fair Payments Limited that holds any funds on your card.

Customer service details for users of Acorn Account

Acorn's Account Customer Services may be reached at 0844 846 5154. Calls will cost 11p per minute plus the access charge charged by your mobile provider.

Its automated telephone service is also available 24 hours a day, 7 days a week.

Can I use Acorn Account for international bank transfers?

Yes. When sending or receiving international payments, you can use IBAN. It does not take the place of your account number or sort code. It's an extra number with additional information to assist international banks in identifying your account for payment. If an overseas bank wants to send money to your Acorn account, they'll need to know its SWIFT number, which tells them which bank to send it to.

Summary

Since 2007, Acorn has provided current accounts and payment services. No credit checks, signatures, or branch visits are necessary to establish these accounts, which are extremely functional and simple to open. The Account Management Team at Acorn manages your routine outgoings. Acorn's UK-based account managers may be able to help you out if you're seeking for a more personal touch when it comes to managing your finances.

When it comes to personal finance, Acorn believes that clients should not be excluded or pre-judged. You will not be denied due toany aspect of your financial background.

Acorns Account currently lacks a smartphone app, and the £14.50 monthly account fees and £1.50 cash withdrawal costs appear to be rather expensive. So, while it may be quick and easy to establish an account, make sure you spend the same amount of time, if not more, assessing the benefits and drawbacks beforehand.

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April Summers
April Summers
April is a trained journalist and the Content Editor for MoneyTransfers.com. She has 10 years experience writing about a diverse range of subjects, from financial services to arts and entertainment. When she's not writing about global remittances she can be found daydreaming about her next holiday abroad.