Funding App Execs and Cons

Micro-investing apps intention to make investing extra inclusive, simpler to grasp and fewer intimidating.

The Stash app is a well-liked selection for brand new traders as a result of it permits you to start investing with simply $5.

Stash can create a diversified funding portfolio for you based mostly 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), bonds and cryptocurrency in order for you a extra hands-on method.

Making an attempt to determine if Stash is best for you? That can assist 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 permits you to  incrementally put small sums of cash into an funding portfolio. That’s a tactic referred to as micro-investing.

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

The corporate operates each a web site and a cell 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 schooling and an automatic investing possibility.

Stash has develop into one of the vital common micro-investing apps in the US with over 6 million customers in 2022. Stash was final valued at $1.4 billion in 2022.

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 speculate), after which get began.

You possibly can select to choose your individual investments or go for a Stash Sensible Portfolio, which  designs a portfolio based mostly in your monetary targets.

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

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 $5 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 data through the sign-up course of, together with your authorized identify and beginning date. (You have to 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, average or aggressive.

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

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 per 30 days

The Stash Progress plan prices $3 per 30 days and provides you entry to a private portfolio funding account, a Stash checking account and debit card, retirement investing account, and the Sensible Portfolio automated investing characteristic.

Stash+: $9 per 30 days

Stash+ prices $9 per 30 days, and provides you entry to 2 custodial funding accounts for youngsters. Stash+ members get a flowery steel debit card and earn double Inventory-Again® rewards, a program that permits you to earn items of inventory if you store. You can even decide in to $10,000 price of life insurance coverage supplied by Avibra.

Stash’s flat month-to-month charge is not like another robo-advisors and on-line brokers, which cost a administration charge as a share of your portfolio stability.

For instance, Wealthfront prices a 0.25% annual administration charge for its funding accounts. So, if you happen to had $1,000 in your Wealthfront funding account, you’d pay simply $2.50 a yr in administration charges.

This could 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 somewhat exhausting to swallow. Paying $36 a yr to entry an IRA and an automatic portfolio is dear 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 typical investor.

How Stash Invests Your Cash

Stash provides 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 steering. That modified in March 2021, when the corporate rolled out Sensible Portfolio, its automated, robo-investment characteristic.

  • Choose your individual investments. All Stash customers get the choice to choose and select from greater than 3,000 shares, bonds, exchange-traded funds and cryptocurrencies. Stash additionally presents “Curated Collections” or bundles of property from comparable industries and sectors, reminiscent of well being care and expertise. It additionally presents suggestions that will help you obtain a balanced portfolio.
  • Sensible Portfolios. Sensible 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. Sensible Portfolios will even periodically rebalance your portfolio for you ​if it drifts 5% away from its goal asset allocation.

The place Your Cash Goes

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

Stash additionally presents a restricted collection of eight cryptocurrency property, together with bitcoin and ethereum.

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

Fractional share investing begins at 1 cent and is accessible 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 desirous about it.

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

Analysis and Choose Your Investments

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

You possibly can lookup particular shares or ETFs within the search field, or in order for you some steering, Stash can supply prompt 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 go looking completely different firm classes, reminiscent of power, finance, media and expertise.

Stash renames most of the ETFs with descriptive titles that make it straightforward for brand new traders to grasp 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 chance degree, 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 how a lot you need to make investments — whether or not with a one-time buy or a scheduled, recurring funding.

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

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, supplying you with further methods to construct your monetary basis.

Stash Evaluate: Providers and Options

Function Particulars
Account minimal $0 to open, $1 to speculate
Account administration charges $3 or $9 per 30 days
Portfolio combine Inventory and bond ETFs
Socially accountable portfolio choices ETFs accessible
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 assist Name 800-205-5164


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

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

Auto- Stash consists of:

  • Set Schedule: Robotically save and make investments cash by establishing 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 stability, or into any investments inside your private portfolio. You can even 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. In case you purchase one thing on Amazon for $12.50, you’ll get charged $13 with that additional 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 stability. From there, you may make investments it into any of the property inside your portfolio.

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


Stash Retire is the app’s particular person retirement account (IRA) possibility. By Stash, you may open a conventional or Roth IRA to save lots of 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 supply automated administration for IRAs, so that you’ll want to choose your individual investments.

Custodial Accounts

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

A custodial account is actually a brokerage account for youths, with some investing and tax advantages.

These funding portfolios are technically referred to as Uniform Items 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, but it surely’s often 18 or 21), they get management of the account, and might proceed to speculate or withdraw the cash.

The $9 per 30 days Stash+ subscription permits you to open up two custodial accounts for minors. It’s dearer than Acorns, which provides you entry to a number of custodial accounts for $5 a month.

Stash Banking Account and Debit Card

All Stash subscribers can open a checking account by the corporate’s associate, Stride Financial institution. Beforehand, Stash partnered with Inexperienced Dot Financial institution.

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

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

Stash financial institution accounts include a Mastercard debit card linked to your account. You’ll additionally get entry to over 55,000 fee-free ATMs nationwide together with your Stash debit card.

Inventory-Again Rewards

Stash permits you to earn inventory investments when you store.

Whenever you use your Stash Mastercard 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 chunk of Walmart inventory.

Whenever you purchase from an organization that doesn’t have publicly traded inventory — like your native ironmongery store — the Stash Inventory-Again program will make investments a sure share 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 1% inventory.

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

Withdraw Cash and Shut Your Stash Account

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

To promote investments within the app:

  1. Choose the funding you need to promote.
  2. Click on “Promote.”
  3. Choose both “Promote” to promote a portion or “Promote All” to promote your complete quantity.
  4. To promote a portion, enter the quantity you need to promote, then hit “Subsequent.”
  5. Choose “Affirm Adjustments.”

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 depends upon the worth of your asset throughout that promoting window.

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

Have 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 price lower than if 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 conventional IRA — you’ll get slammed with a ten% penalty from the IRS if you happen to’re underneath the age of 59.5.

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

However if you happen to determine to promote, comply with 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 assist crew through telephone or e-mail Monday by Friday, 8:30 a.m. to six:30 p.m. ET.

Their buyer assist telephone quantity is 800-205-5164 and their e-mail tackle is [email protected]. Electronic mail assist can also be accessible on weekends from 9 a.m. to five p.m.

Execs and Cons

Each funding app has its professionals and cons. Listed here are among the benefits and disadvantages of Stash.


  • There is no such thing as a funding minimal, and you can begin investing with as little as $1.
  • No add-on fee charges.
  • ETFs are damaged down by class, so you may see precisely what forms of corporations you’re investing in, and make choices based mostly in your pursuits or beliefs.
  • Academic instruments and sources.
  • Auto-Stash helps you robotically make investments through round-ups and recurring transfers.
  • You get the choice to financial institution,¹ make investments and get monetary savings for retirement in a single app.


  • Stash prices between $3 to $9 per 30 days to make use of. Whenever you evaluate that to your returns, particularly if in case you have a small account stability, the month-to-month charge may not be price it.
  • Stash Sensible Portfolios don’t supply tax loss harvesting, an funding technique that helps scale back your yearly tax burden.
  • The app doesn’t supply entry to a human monetary advisor or stay funding recommendation.
  • Investing entails threat. Though you’re investing small quantities of cash, you’re nonetheless enjoying with the inventory market, so it’s doable to lose cash.

Often Requested Questions (FAQs) About Stash App

There are numerous questions concerning the Stash app and we’ve answered the most typical that will help you determine if this funding platform is best for you.

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

Whenever 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 achieve worth over time. Clients with a Stash Mastercard 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 enroll in the app.

Does Stash Steal Your Cash?

Stash doesn’t “steal” your cash, however if in case you have the Auto-Stash characteristic turned on, the app will robotically 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 regulate 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 legislation to acquire, confirm and report this data. The corporate additionally wants your SSN to organize an annual tax reporting kind for you.


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

This text comprises normal data and explains choices you will have, however it isn’t meant to be funding recommendation or a private suggestion. We will not personalize articles for our readers, so your state of affairs could fluctuate 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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