Stash App Review 2021

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

The Stash app is a well-liked selection for brand new buyers 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 objectives and threat tolerance, providing a user-friendly solution to kickstart your funding journey.

Or you possibly can 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 strategy.

Attempting to determine 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 companies 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 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 a web site and a cellular app. Stash provides retirement, banking, particular person brokerage and custodial accounts with a month-to-month flat-fee subscription mannequin.

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

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

How Does Stash Work?

On this Stash evaluate, we’ll talk about the completely different funding accounts the app provides, execs and cons, pricing and extra.

However first, let’s clarify open your account with Stash.

Find out how to Signal Up

You’ll be able to simply enroll with Stash by visiting the web site or downloading the app.

Stash doesn’t require clients to deposit a minimal sum of money to open an account, however you’ll want at the least $5 to start out investing. As soon as your account is up and working, you possibly can make investments smaller increments (like 5 cents or much less).

You’ll want to offer some private data throughout the sign-up course of, together with your authorized identify and delivery date (you should be at the least 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 a couple of questions to assist Stash gauge your risk tolerance: conservative, average or aggressive.

As soon as that’s completed, you possibly can take a second to get aware of the app.

How A lot Does Stash Value?

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

Stash Newbie: $1 monthly

The Stash Newbie plan prices $1 monthly and provides you entry to a private portfolio funding account, a Stash checking account and a debit card. You’ll be able to decide your individual particular person shares and ETFs, however the automated portfolio possibility isn’t accessible with Stash Newbie.

Stash Progress: $3 monthly

If you would like entry to a retirement funding account, or the Sensible Portfolio automated investing characteristic, you’ll pay a $3 month-to-month charge.

Stash+: $9 monthly

Stash+ prices $9 monthly, 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 whenever you store. You can even decide in to $10,000 price of life insurance coverage provided by Avibra.

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

For instance,  Betterment and Wealthfront cost a 0.25% annual administration charge for his or her primary portfolios. So, in the event you 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 disadvantage for customers with low account balances.

Nonetheless, at $1 a month, Stash Newbie is a reasonably reasonably priced taxable brokerage account, contemplating you additionally get entry to a checking account and a Stash debit card. This entry-level possibility is cheaper than Acorns, Stash’s greatest competitor.

The fixed-cost $1 mannequin additionally turns into extra reasonably priced in the event you make investments a big sum of money as your portfolio worth goes up however your charges don’t.

Nonetheless, the worth of Stash Progress is just a little 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 actually a nasty deal for the common investor.

How Stash Invests Your Cash

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

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.

• Decide your individual investments. All Stash customers get the choice to select and select from greater than 3,000 shares, bonds and exchange-traded funds. Stash additionally provides “Curated Collections” or bundles of property from related industries and sectors, reminiscent of well being care and expertise. It additionally provides suggestions that will help you obtain a balanced portfolio.
• Sensible Portfolios. That is Stash’s robo-advisor possibility accessible to Stash Progress and Stash+ subscribers. 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 can 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 invests your cash utilizing fractional shares, that are tiny items of shares or ETFs. Fractional shares let you start investing in more expensive stocks — reminiscent of Apple, Tesla or Amazon — even in the event you don’t have sufficient money to purchase a complete 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 solution 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 simple and painless solution to make investments with out serious about it.

Stash additionally offers you the choice to mechanically reinvest dividends again into your portfolio, protecting your cash working always. You’ll be able to allow this characteristic on any Stash investing, retirement or custodial account.

Find out how to Analysis and Choose Your Investments

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

You’ll be able to search for particular shares or ETFs within the search field, or if you’d like some steering, Stash can supply instructed investments for you. Faucet “Get Suggestions” to get suggestions on higher diversify your portfolio and handle your threat.

Another choice is to go looking completely different firm classes, reminiscent of vitality, finance, media and expertise.

Stash renames lots of the ETFs with descriptive, enjoyable titles that make it simple for brand new buyers 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’ll be able to learn a quick overview of any funding, peep the chance stage, and in the event you’re taking a look at an ETF, see an inventory of its prime firm holdings. You’ll be able to 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 possibly can test in in your investments by visiting your portfolio’s dwelling 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 should assist you to with steering and proposals, too. You’ll find 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 companies over time, supplying you with extra methods to construct your monetary basis.

Auto-Stash

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

You’ll be able to allow or flip off Auto Stash at any time.

Auto Stash consists of:

• Set Schedule: Mechanically save and make investments cash by organising recurring transfers out of your linked account to your Stash portfolio on a every day, weekly or month-to-month foundation. With this characteristic, you possibly can 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.
  So, in the event 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 possibly can make investments it into any of the property inside your portfolio.

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

IRAs

Stash Retire is the app’s particular person retirement account (IRA) possibility. By means of Stash, you possibly can open a traditional or Roth IRA to avoid wasting for retirement in a tax advantaged account. You’ll be able to 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 select your individual investments.

Custodial Accounts

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

A custodial account is basically a brokerage account for teenagers, 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 sometimes permit one or the opposite, so Stash will decide the kind of account that meets your state’s necessities.

You’ll be able to 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 often 18 or 21), they get management of the account, and may proceed to speculate or withdraw the cash.

The $9 monthly 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 companion, 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 cellular test deposits, invoice pay and test writing companies 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 permits you to earn inventory investments whilst you store.

Once 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, in the event you store at Walmart, you’ll earn a bit of Walmart’s inventory.

Once 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 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 2x inventory.

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

Find out how to 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 “Verify Adjustments.”

You’ll be able to set investments to promote anytime, and Stash will execute your promote order when the market is open. The quantity you get from the sale is determined by the worth of your asset throughout that promoting window.

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

Take note — and that is actually essential — promoting shares isn’t like withdrawing cash from the financial institution.

in the event you promote when a inventory is price lower than whenever you purchased it, you’ll lose cash. There’s additionally tax penalties, particularly in the event you promote an asset you’ve owned lower than one yr.

And in the event you withdraw cash out of your Stash retirement account — particularly a conventional IRA — you’ll get slammed with a ten% penalty from the IRS in the event you’re below the age of 59.5.

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

Follow these directions to correctly shut your account.

You probably have a query the Stash FAQ page can’t reply, you possibly can contact the corporate’s help group through telephone or electronic mail Monday by 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]. Electronic mail help can be accessible on weekends from 9 a.m. to five p.m.

Professionals and Cons

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

Regularly Requested Questions

Is Stash Authentic?

Sure, Stash is respectable, 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 may arrange fingerprint or facial recognition entry.

Once 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’ll be able to 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 provides 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 when you’ve got 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’ll be able to regulate your Auto-Stash settings or flip them off utterly at any time.

Can I Belief Stash With My SSN?

Sure, you possibly can belief Stash together with your Social Safety quantity. As a monetary establishment, Stash is required by regulation to acquire, confirm and report this data. The corporate additionally wants your SSN to arrange an annual tax reporting kind for you.

Rachel Christian is a Licensed Educator in Private Finance and a senior author for The Penny Hoarder.

The Penny Hoarder is a paid Affiliate/ companion of Stash. Funding advisory companies provided by Stash Investments LLC, an SEC-registered funding adviser. 

*Provide is topic to Promotion Terms and Conditions 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 shouldn’t be 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 duty to satisfy any inventory rewards earned by this program.

For extra disclosures, click here.

This text comprises basic data and explains choices you will have, however it isn’t supposed to be funding recommendation or a private advice. We will not personalize articles for our readers, so your state of affairs could range from the one mentioned right here. Please search a licensed skilled for tax recommendation, authorized recommendation, monetary planning recommendation or funding recommendation.