Micro-investing apps aim to make investing more inclusive, easier to understand and less intimidating.
TheStashapp is a popular choice for new investors because it lets you begin investing with just $5.
Trying to decide if Stash is right for you?
Want to shop around? Here’s our round-up of thebest micro-investing apps.
To help you make the best choice, weve reviewed the app ourselves.
What Is Stash?
Thats a tactic known asmicro-investing.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
The company operates both a website and a mobile app.
Stash offers retirement, banking, individual brokerage and custodial accounts with a monthly flat-fee subscription model.
It also offers personal finance education and an automated investing option.
Stash was last valued at $1.4 billion in 2022.
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How Does Stash Work?
Stash works by helping you start investing small, manageable amounts of money.
Youll need to provide some personal information during the sign-up process, including your legal name and birth date.
(You must be at least 18 years old to use Stash).
You also must provide your Social Security number to prove youre a legal U.S. citizen.
Once thats done, you’re free to take a moment to get familiar with the app.
How Much Does Stash Cost?
Stash offers two subscription plans that charge monthly fees.
There are no trading fees or commission fees.
you’re able to also opt in to $10,000 worth of life insurance offered by Avibra.
For example,Wealthfrontcharges a 0.25% annual management fee for its investment accounts.
This can make Stashs monthly fees a drawback for users with low account balances.
Overall, the price of Stash Growth is a little hard to swallow.
How Stash Invests Your Money
Stash gives you a few ways to start investing.
One is a hands-on, DIY experience while the other takes a more automated approach.
Stash previously only allowed users to purchase their own individual investments without guidance.
That changed in March 2021, when the company rolled out Smart Portfolio, its automated, robo-investment feature.
Stash also offers a limited selection of eight cryptocurrency assets, including bitcoin and ethereum.
Stash invests your money usingfractional shares, which are tiny pieces of stocks or ETFs.
Fractional share investing starts at 1 cent and is available for every investment account on the Stash platform.
Round-ups are another way to micro-invest with Stash.
Its an easy and painless way to invest without thinking about it.
you might enable this feature on any Stash investing, retirement or custodial account.
Tap Get Recommendations to get feedback on how to better diversify your portfolio and manage your risk.
Another option is to search different company categories, such as energy, finance, media and technology.
Once you choose your investments, select Add to Portfolio.
Your Stash investment page breaks down your portfolios total value and total return.
More Stash Features
Invest, Stashs personal taxable brokerage account, is the companys flagship feature.
you might enable or turn off Auto- Stash at any time.
Auto- Stash includes:
IRAs
Stash Retire is the apps individual retirement account (IRA) option.
Through Stash, you might open atraditional or Roth IRAto save for retirement in a tax advantaged account.
you might fund your Stash Retire account the same ways you fund a Stash Invest account.
However, Stash doesnt offer automated management for IRAs, so youll need to pick your own investments.
Custodial Accounts
Stash lets you open custodial accounts for minors, whether youre their parent or not.
A custodial account is essentially a brokerage account for kids, with some investing and tax benefits.
you could fund custodial brokerage accounts the same ways you fund a personal Stash Invest account.
The $9 per month Stash+ subscription lets you open up two custodial accounts for minors.
Its more expensive than Acorns, which gives you access to multiple custodial accounts for $5 a month.
Previously, Stash partnered with Green Dot Bank.
The FDIC-insured digital bank account has no overdraft fees, minimum balance or monthly maintenance fees.
You also get mobile check deposits, bill pay and check writing services with your Stash debit account.
Stash bank accounts come with a Mastercard debit card linked to your account.
Youll also get access to over 55,000 fee-free ATMs nationwide with your Stash debit card.
Stock-Back Rewards
Stash lets you earn stock investments while you shop.
For example, if you shop at Walmart, youll earn a piece of Walmart stock.
Youll earn 0.125% stock on everyday purchases, and up to 5% with certain merchants.
Stash+ account users earn 1% stock.
The amount you get from the sale depends on the value of your asset during that selling window.
After that, Stash will release your money into your cash balance.
Keep in mind and this is really important selling stocks isnt like withdrawing money from the bank.
if you sell when a stock is worth less than when you bought it, youll lose money.
Theres also tax consequences, especially if you sell an asset youve owned less than one year.
In general, its best to hold stocks over the long term.
But if you decide to sell,follow these directionsto properly close your account.
Their customer support phone number is 800-205-5164 and their email address is[email protected].
Here are some of the advantages and drawbacks of Stash.
Yes, Stash is legitimate, and no, its not a scam.
The app is all about security, too.
you’re free to set up thumbprint access, too.
Youll earn money as your investments gain value over time.
But that money goes into your portfolio so its still yours.
you might adjust your Auto-Stash tweaks or turn them off completely at any time.
The company also needs your SSN to prepare an annual tax reporting form for you.
Rachel Christian is a senior writer for The Penny Hoarder.
Contributor Whitney Hansen updated this review.
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We can’t personalize articles for our readers, so your situation may vary from the one discussed here.
like seek a licensed professional for tax advice, legal advice, financial planning advice or investment advice.
