Every parent wants to see their kid reach for the stars. That often means planning for their future. EarlyBird is an app that promises to help families grow their savings for their child's future. But with so many ways to save, is EarlyBird the right choice for you? Lets take a closer look at the EarlyBird review. So you can decide if it is the perfect fit for your saving goals.

What Kind Of Account Is EarlyBird?

EarlyBird is a fintech gifting platform that allows parents to invest in their kids future. By using this app parents can create a Uniform Gifts to Minors Act (UGMA) account using a robo-advisor. This is a custodial account which offers investment in stocks, bonds, mutual funds and other securities on the childs behalf.

At the age of 18, these funds automatically transfer to the childs name. These funds can also be used for a child's first business, down payment for home and car, retirement and other investments.

Moreover, parents can invite other family members and close friends to contribute to their childs account. Its the best alternative to gifting toys and other stuff to children by inviting family and friends to donate money.

EarlyBird app also allows friends and family members who are gifting money to record videos. These short videos will be on the app to look back as a memory to cherish for the child.

Certainly, it has raised a total funding of $10.9 Million. Also, closed a $4 Million seed funding in November 2021 and $2.4 Million as pre-seed funding in November 2020.

However, EarlyBird isnt the only investment app for children. Acorn and Stash are also offering such kinds of investments.

EarlyBird Fees:

There is no fee to create an account on EarlyBird. It doesnt charge a management fee on the first $200 of assets in the account. However, you have to pay a $1 monthly fee per child. Also, friends and family who are gifting money have to pay a $2 processing fee per gift.

How Much Does EarlyBird Investing Cost?

Once you start investing its pricing is $2.95/month for one child and $4.95/month for unlimited children.

EarlyBird Portfolios:

EarlyBird offers portfolios using Exchange-Traded Funds (ETFs) that invest in bonds, stock and other securities. These portfolios range from conservative (100% bonds ETFs) to aggressive (100% equity ETFs).

Moreover, EarlyBird has partnered with financial and wealth management advisors to create these portfolios. Financial experts review portfolios quarterly but you wont get to meet financial advisors regularly.

EarlyBirds Taxes:

EarlyBird has certain tax rules set by the IRS. Some taxation guidelines are;

• Earning up to $1,050 is tax-free
• More than $1,050 is taxable at the childs tax rate
• Earnings more than $2,100 are taxed at the parents tax rate

Moreover, UGMA accounts dont offer tax advantages as 529 college saving plans. However, after the age of maturity, your child can use UGMA money on virtually anything without paying a penalty.

Also, EarlyBird is going to start 529 plans on a wide range of accounts. On the other hand, Stash and Acorns are also offering UGMA accounts. So, compare your options wisely.

Is EarlyBird Legit?

EarlyBird appears to be a trusted and regulated investment platform for custodial accounts;

• EarlyBird is an SEC-registered investment advisor (RIA), which provides SIPC protection of up to $500,000 against fraud.
• The company has over $1 million in assets under management across more than 20,000 users. Indicating significant adoption and trust from customers.
• EarlyBird has been featured in reputable media outlets. Like Fox Business, CNBC, Yahoo! News, and Fortune, further validate its legitimacy.

EarlyBird Investment Reviews:

Here are the investment highlights provided by the company in 2022;

• Simplified investing for families
• 43K+ Users (25% avg. MoM growth since Dec 1, 2021)
• 14K+ Transacted Users
• 8K+ Gifts Sent (Average Gift Amount = $150)
• 6K+ Funded Accounts (Lifetime Churn < 5%)

Notable investors who invested in the seed round of EarlyBird are;

• 776 Ventures
• Gemini
• Fiat Ventures
• LightSpeed Scout Fund and Sweater Ventures
• Nathaniel Whittemore (Marketing and Strategy at FTX)
• Stevin John (creator of Blippi)
• RareBreed Ventures
• Alumni Ventures
• Goodwater Capital
• Wintrust Bank

Advantages of Investing In EarlyBird:

The advantages of being an early bird investor include:

• Invest at a lower price before the company becomes successful.
• Benefit from the company's success from the beginning, potentially leading to larger returns.
• Get to know the founders and management team better, gaining an inside view of the business.
• Invest in a startup offering a unique product or service with high growth potential.
• Get in on the ground floor of a potentially successful company. Setting the stage for long-term financial gains.

Drawbacks Of Investing In EarlyBird:

The drawbacks of investing in EarlyBird include:

• EarlyBird offers fewer investment choices compared to other platforms.
• It may provide fewer tax benefits than 529 plans.
• Funds invested in EarlyBird accounts have limited access until the beneficiary reaches a certain age.

EarlyBird Customer Reviews:

There are not many reviews from EarlyBird customers. Also, this investment platform doesnt have a Better Business Bureau or Trustpilot page. However, some reliable sources are providing positive feedback.

In May 2024, Google Play Store showed 4 out of 5-star ratings with 154 reviews. Similarly, the Apple store had a rating of 4.3 out of 5-stars with 123 reviews.

In addition, customers found this app with a simple setup and easy to use. However, Android users experienced some bugs and login problems which prevented them from contributing to gifting funds.

FINAL THOUGHTS:

Right now, EarlyBird is a very young platform as it was founded in 2019. Their services, features, technology, and investments are surely going to improve with time. However, there are also several options available for early investments. Each of them offers their own advantages and drawbacks.

So, its better you should do thorough research and find the best option for your children.