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Funding App Execs and Cons

Micro-Investing apps goal to make investing extra inclusive, simpler to know and fewer intimidating.

The Stash app is a well-liked selection for brand new buyers as a result of it helps you to start investing with simply $1.

Stash can create a diversified funding portfolio for you primarily based in your monetary targets and threat tolerance, providing a user-friendly method to kickstart your funding journey.

Or you may decide from greater than 3,000 particular person shares, exchange-traded funds (ETFs), in addition to bonds if you’d like a extra hands-on method.

Attempting to resolve if Stash is best for you? That will help you make the only option, we’ve reviewed the app ourselves.

What Is Stash?

Stash Monetary Inc. is a New York Metropolis-based monetary providers firm that allows you to  incrementally put small sums of cash into an funding portfolio. That’s a tactic often known as micro investing.

Former Wall Avenue execs Brandon Krieg and Ed Robinson based Stash in 2015 with the purpose of serving to on a regular basis individuals create a safer monetary future.

The corporate operates each an internet site and a cellular app. Stash presents retirement, banking, particular person brokerage and custodial accounts with a month-to-month flat-fee subscription mannequin.

It additionally presents private finance training and an automatic investing possibility.

Stash has turn out to be one of the crucial fashionable micro-investing apps in america with over 6 million customers in 2021, in line with the corporate’s web site. Stash was final valued at $1.4 billion in 2021.

How Does Stash Work?

Stash works by serving to you begin investing small, manageable quantities of cash. You merely pay for a plan, deposit $5 or extra (the minimal to take a position), after which get began. You possibly can select to choose your personal investments or go for a Stash Good Portfolio, the place Stash will design a portfolio primarily based in your monetary targets.

On this Stash evaluation, we tackle the completely different funding accounts the app presents, execs and cons, pricing and extra.

Tips on how to Signal Up

You possibly can simply join with Stash by visiting the web site or downloading the app.

Stash doesn’t require prospects to deposit a minimal sum of money to open an account, however you’ll want a minimum of $1 to start out investing. As soon as your account is up and operating, you may make investments smaller increments (like 5 cents or much less).

You’ll want to offer some private info throughout the sign-up course of, together with your authorized title and beginning date (you should be a minimum of 18 years previous to make use of Stash). You additionally should present your Social Safety quantity to show you’re a authorized U.S. citizen.

Subsequent, you’ll be requested to reply just a few questions to assist Stash gauge your threat tolerance: conservative, reasonable or aggressive.

As soon as that’s carried out, you may take a second to get conversant in the app.

This illustration shows a woman holding a coin.
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How A lot Does Stash Value?

Stash presents two subscription plans that cost month-to-month charges. There are not any buying and selling charges or fee charges.

Stash Progress: $3 monthly

The Stash Progress plan prices $3 monthly and provides you entry to a private portfolio funding account, a Stash checking account and debit card, retirement investing account, and the Good Portfolio automated investing characteristic.

Stash+: $9 monthly

Stash+ prices $9 monthly, and provides you entry to 2 custodial funding accounts for youngsters. Stash+ members get a flowery metallic debit card and earn double Inventory-Again® rewards, a program that allows you to earn items of inventory whenever you store. You may as well decide in to $10,000 value of life insurance coverage supplied by Avibra.

Stash’s flat month-to-month payment is in contrast to many different robo-advisors and on-line brokers, which cost a administration payment as a proportion of your portfolio steadiness.

For instance,  Betterment and Wealthfront cost a 0.25% annual administration payment for his or her primary portfolios. So, if you happen to had $1,000 in your Betterment funding account, you’d pay simply $2.50 a yr in administration charges.

This will make Stash’s month-to-month charges a downside for customers with low account balances.

Nonetheless, the fixed-cost $3 mannequin is extra inexpensive if you happen to make investments a big sum of money as your portfolio worth goes up however your charges don’t.

Total, the worth of Stash Progress is a bit of laborious to swallow. Paying $36 a yr to entry an IRA and an automatic portfolio is pricey in comparison with different on-line brokers.

And paying greater than $100 a yr for Stash+ simply to get two custodial funding accounts and $10,000 of life insurance coverage is truthfully a foul deal for the common investor.

How Stash Invests Your Cash

Stash offers you just a few methods to start out investing. One is a hands-on, DIY expertise whereas the opposite takes a extra automated method.

Stash beforehand solely allowed customers to buy their very own particular person investments with out steerage. That modified in March 2021, when the corporate rolled out Good Portfolio, its automated, robo-investment characteristic.

  • Decide your personal investments. All Stash customers get the choice to choose and select from greater than 3,000 shares, bonds and exchange-traded funds. Stash additionally presents “Curated Collections” or bundles of belongings from related industries and sectors, akin to well being care and know-how. It additionally presents suggestions that will help you obtain a balanced portfolio.
  • Good Portfolios. Good Portfolio takes the guesswork out of investing by placing your {dollars} right into a predetermined diversified portfolio that matches your threat tolerance. Automated portfolios are made up of ETFs that provide you with publicity to U.S. and worldwide shares, together with U.S. and worldwide bonds. Good Portfolios may also periodically rebalance your portfolio for you ​if it drifts 5% away from its goal asset allocation.

The place Your Cash Goes

Stash helps you to purchase shares and ETFs, or exchange-traded funds, which bundle quite a few shares or bonds right into a single fund.

Stash invests your cash utilizing fractional shares, that are tiny items of shares or ETFs. Fractional shares allow you to begin investing in costlier shares — akin to Apple, Tesla or Amazon — even if you happen to don’t have sufficient money to purchase a complete share at first.

Fractional share investing begins at 1 cent and is offered for each funding account on the Stash platform.

Spherical-ups are one other method to micro-invest with Stash. After linking a credit score or debit card, Stash will spherical your purchases to the closest greenback and make investments the distinction. It’s a straightforward and painless method to make investments with out serious about it.

Stash additionally offers you the choice to mechanically reinvest dividends again into your portfolio, maintaining your cash working always. You possibly can allow this characteristic on any Stash investing, retirement or custodial account.

Tips on how to Analysis and Choose Your Investments

The “Make investments” button on the app’s backside toolbar helps you to discover your funding choices.

You possibly can search for particular shares or ETFs within the search field, or if you’d like some steerage, Stash can provide recommended investments for you. Faucet “Get Suggestions” to get suggestions on how you can higher diversify your portfolio and handle your threat.

An alternative choice is to look completely different firm classes, akin to vitality, finance, media and know-how.

Stash renames most of the ETFs with descriptive, enjoyable titles that make it simple for brand new buyers to know what’s inside. For instance, the Vanguard Rising Markets Inventory Index Fund (VWO) is titled “Up & Coming” whereas the SPDR Well being Care Choose Sector (XLV) is titled “Physician, Physician!”

You possibly can learn a short overview of any funding, peep the danger stage, and if you happen to’re an ETF, see an inventory of its prime firm holdings. You possibly can faucet over to the efficiency part for a visible illustration of the asset’s previous efficiency.

When you select your investments, choose “Add to Portfolio.” You’ll be prompted to pick out how a lot you wish to make investments — whether or not with a one-time buy or a scheduled, recurring funding.

As time goes by, you may verify in in your investments by visiting your portfolio’s residence web page. Your Stash funding web page breaks down your portfolio’s complete worth and complete return.

The app additionally supplies Stash Coach, a recreation the place you earn factors and stage up after finishing funding and private finance challenges. It’ll assist you with steerage and suggestions, too. You will discover this characteristic whenever you faucet “Dwelling.”

Extra Stash Options

Make investments, Stash’s private taxable brokerage account, is the corporate’s flagship characteristic.

Nonetheless, the Stash app has expanded its providers over time, providing you with extra methods to construct your monetary basis.

Stash Overview: Providers and Options

Function Particulars
Account minimal $0 to open, $1 to take a position
Account administration charges $3 or $9 monthly
Portfolio combine Inventory and bond ETFs
Socially accountable portfolio choices ETFs out there
Retirement account choices Conventional or Roth IRA
UTMA/UGMA choices Obtainable with Stash+
Tax technique No tax loss harvesting
Automated rebalancing Quarterly
Human advisor possibility No
Checking account/money administration account Checking w/ no overdraft
Buyer help Name 800-205-5164


All Stash subscribers get entry to 2 automated saving and investing instruments referred to as Auto-Stash. This might help set your funds to autopilot, so that you don’t should actively deposit cash into your account.

You possibly can allow or flip off Auto Stash at any time.

Auto Stash contains:

  • Set Schedule: Robotically save and make investments cash by organising recurring transfers out of your linked account to your Stash portfolio on a day by day, weekly or month-to-month foundation. With this characteristic, you may put aside cash into your money steadiness, or into any investments inside your private portfolio. You may as well use Set Schedule to fund your Stash retirement and custodial accounts.
  • Spherical-Ups: With this characteristic, Stash will round-up your purchases to the closest greenback every time you spend with the debit card related together with your linked checking account.
    So, if you happen to purchase one thing on Amazon for $12.50, you’ll get charged $13 with that further 50 cents directed to your Stash portfolio. ​​As soon as your spare change reaches $5 or extra, Stash will switch the cash to your private funding account money steadiness. From there, you may make investments it into any of the belongings inside your portfolio.

Auto-Stash used to incorporate a characteristic referred to as Good-Stash, which mechanically transferred small quantities out of your checking account to the app. It was phased out in 2021 and is now not out there.


Stash Retire is the app’s particular person retirement account (IRA) possibility. Via Stash, you may open a conventional or Roth IRA to avoid wasting for retirement in a tax advantaged account. You possibly can fund your Stash Retire account the identical methods you fund a Stash Make investments account.

Nonetheless, Stash doesn’t provide automated administration for IRAs, so that you’ll want to choose your personal investments.

Custodial Accounts

Stash helps you to open custodial accounts for minors, whether or not you’re their dad or mum or not.

A custodial account is basically a brokerage account for teenagers, with some investing and tax advantages.

These funding portfolios are technically often known as Uniform Presents to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) accounts. Totally different states usually enable one or the opposite, so Stash will decide the kind of account that meets your state’s necessities.

You possibly can fund custodial brokerage accounts the identical methods you fund a private Stash Make investments account. When the kid reaches the age of majority (this varies by state, nevertheless it’s normally 18 or 21), they get management of the account, and may proceed to take a position or withdraw the cash.

The $9 monthly Stash+ subscription helps you to open up two custodial accounts for minors. It’s costlier than Acorns, which supplies you entry to a number of custodial accounts for $5 a month.

A woman uses a debit card to make an online purchase.
Getty Pictures

Stash Banking Account and Debit Card

All Stash subscribers can open a checking account by means of the corporate’s associate, Inexperienced Dot Financial institution.

The FDIC-insured digital checking account has no overdraft charges, minimal steadiness or month-to-month upkeep charges.

You additionally get cellular verify deposits, invoice pay and verify writing providers together with your Stash debit account.

Stash financial institution accounts include a Visa debit card linked to your account. You’ll additionally get entry to over 19,000 fee-free ATMs nationwide together with your Stash debit card.

Inventory-Again Rewards

Stash helps you to earn inventory investments when you store.

If you use your Stash Visa debit card, you’ll earn Inventory-Again rewards, that are small items of shares associated to your buy. For instance, if you happen to store at Walmart, you’ll earn a bit of Walmart’s inventory.

If you purchase from an organization that doesn’t have publicly traded inventory — like your native ironmongery shop — the Stash Inventory-Again program will make investments a sure proportion right into a inventory or ETF of your selection.

You’ll earn 0.125% inventory on on a regular basis purchases, and as much as 5% with sure retailers. Stash+ account customers earn 2x inventory.

You’ll obtain the Inventory-Again® debit card whenever you open and fund a Stash money administration account, which is offered to all paid subscribers.

Tips on how to Withdraw Cash and Shut Your Stash Account

To take cash out of your Stash funding account, you could have to promote a few of your shares or ETFs.

To promote investments within the app:

  1. Choose the funding you wish to promote.
  2. Click on “Promote.”
  3. Choose both “Promote” to promote a portion or “Promote All” to promote your entire quantity.
  4. To promote a portion, enter the quantity you wish to promote, then hit “Subsequent.”
  5. Choose “Verify Modifications.”

You possibly can set investments to promote anytime, and Stash will execute your promote order when the market is open. The quantity you get from the sale relies on the worth of your asset throughout that promoting window.

After that, Stash will launch your cash into your money steadiness.

Bear in mind — and that is actually essential — promoting shares isn’t like withdrawing cash from the financial institution.

if you happen to promote when a inventory is value lower than whenever you purchased it, you’ll lose cash. There’s additionally tax penalties, particularly if you happen to promote an asset you’ve owned lower than one yr.

And if you happen to withdraw cash out of your Stash retirement account — particularly a standard IRA — you’ll get slammed with a ten% penalty from the IRS if you happen to’re beneath the age of 59.5.

Normally, it’s finest to carry shares over the long run.

Observe these instructions to correctly shut your account.

If in case you have a query the Stash FAQ web page can’t reply, you may contact the corporate’s help group through telephone or electronic mail Monday by means of Friday, 8:30 a.m. to six:30 p.m. ET.

Their buyer help telephone quantity is 800-205-5164 and their electronic mail tackle is [email protected]. E mail help can be out there on weekends from 9 a.m. to five p.m.

Execs and Cons

Each funding app has its execs and cons. Listed below are a number of the benefits and downsides of Stash.


  • There isn’t any account minimal steadiness, and you can begin investing with as little as $1.
  • No buying and selling charges or commissions.
  • ETFs are damaged down by class, so you may see precisely what sorts of firms you’re investing in, and make selections primarily based in your pursuits or beliefs.
  • Academic instruments and assets.
  • Auto-Stash helps you mechanically make investments through round-ups and recurring transfers.
  • You get the choice to financial institution, make investments and lower your expenses for retirement in a single app.


  • Stash prices between $3 to $9 monthly to make use of. If you examine that to your returns, particularly when you have a small account steadiness, the month-to-month payment won’t be value it.
  • Stash Good Portfolios don’t provide tax loss harvesting, an funding technique that helps scale back your yearly tax burden.
  • The app doesn’t provide entry to a human monetary advisor or dwell funding recommendation.
  • Investing entails threat. Though you’re investing small quantities of cash, you’re nonetheless taking part in with the inventory market, so it’s attainable to lose cash.

Continuously Requested Questions (FAQs) About Stash App

There are loads of questions in regards to the Stash App and we’ve answered the most typical that will help you resolve if this funding platform is best for you.

Sure, Stash is official, and no, it’s not a rip-off. The app is all about safety, too. It has 256-bit encryption (that’s what loads of banks use), and you’ll arrange fingerprint or facial recognition entry.

If you open an account, you’ll create a four-digit safety code, which you’ll be required to enter every time you open the app. You possibly can arrange thumbprint entry, too.

Can You Make Cash With Stash?

Sure. You’ll earn cash as your investments acquire worth over time. Clients with a Stash Visa debit card may earn 0.125% inventory on on a regular basis purchases and as much as 5% in inventory at sure retailers. Lastly, Stash additionally presents referral bonuses to customers who get their family and friends to join the app.

Does Stash Steal Your Cash?

Stash doesn’t “steal” your cash, however when you have the Auto-Stash characteristic turned on, the app will mechanically round-up purchases made with a linked debit card and/or make scheduled recurring transfers. However that cash goes into your portfolio — so it’s nonetheless yours.

You possibly can alter your Auto-Stash settings or flip them off utterly at any time.

Can I Belief Stash With My SSN?

Sure, you may belief Stash together with your Social Safety quantity. As a monetary establishment, Stash is required by regulation to acquire, confirm and file this info. The corporate additionally wants your SSN to organize an annual tax reporting type for you.

Rachel Christian is a senior author for The Penny Hoarder. Contributor Whitney Hansen up to date this evaluation.

The Penny Hoarder is a paid Affiliate/ associate of Stash. Funding advisory providers supplied by Stash Investments LLC, an SEC-registered funding adviser. 

*Supply is topic to Promotion Phrases and Circumstances To be eligible to take part on this Promotion and obtain the bonus, you need to efficiently open a person brokerage account in good standing, hyperlink a funding account to your Make investments account AND deposit $5.00 into your Make investments account.

Financial institution Account Providers offered by Inexperienced Dot Financial institution, Member FDIC. Account opening of the checking account is topic to Inexperienced Dot Financial institution approval. Funding services and products offered by Stash Investments LLC, not Inexperienced Dot Financial institution, and are Not FDIC Insured, Not Financial institution Assured, and Might Lose Worth.

Inventory-Again® rewards is just not sponsored or endorsed by Inexperienced Dot Financial institution, Inexperienced Dot Company, Visa U.S.A. or any of their respective associates, and not one of the forgoing has any accountability to satisfy any inventory rewards earned by means of this program.

For extra disclosures, click on right here.

This text comprises normal info and explains choices you could have, however it’s not meant to be funding recommendation or a private suggestion. We won’t personalize articles for our readers, so your state of affairs might differ from the one mentioned right here. Please search a licensed skilled for tax recommendation, authorized recommendation, monetary planning recommendation or funding recommendation.



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