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What is Stash? 2022 Review Pros, Cons and how it Compares

– What is Stash –

Stash helps you to get money into the stock market with an investment as low as $1. It also helps you learn about investing so you can earn and save more money.

What is Stash

Stash is a budgeting app wrapped up in an investment account. The mobile app is geared toward beginning investors looking for an easy way to buy stocks and other investments.

Stash customers also have access to banking and budgeting tools. This Stash review looks at how Stash works, to help you determine if it’s worth the investment.

What Is Stash App

With more than 361,786 ratings on the App Store (where it’s ranked #15 in Finance) and Google Play, they earns a spot on Forbes Advisors’ Best Budgeting Apps and has established a solid user base and reputation.

Mobile apps such as Stash can provide great tools both for tracking your budget and for managing your investments. Account details and fees are accurate as of March 4, 2022.

What Is Stash Investment

At first glance, Stash looks like any other investment app. Hidden within the app, though, are budgeting tools and features to help investors manage funds and build savings.

All Stash accounts come with a bank account serviced by Green Dot Bank. The bank account has no minimum balance requirements, no overdraft fees, and no monthly services fees.

It also includes other features like early direct deposit access (up to two days early) and recurring automatic transfers.

Their users also have access to 19,000+ fee-free ATMS across the U.S. and cash deposits at retail locations at participating CVS, Rite Aid, and Walgreens stores.

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Stash and Your Budget

Stash doesn’t offer the robust budgeting features found with many other budgeting apps. Within the banking portion of Stash, you can set savings goals and automate savings to fund those goals.

Users can track spending with their app, too, which will help you understand your expenses better and provide guidance when planning your monthly budget.

1. Security

When using any financial app, you want to know that your money and personal information are safe.

Stash uses the latest security measures to protect its customers, including 256-bit encryption, biometric authentication, and other cutting-edge technologies.

You also need to think about security whenever you bank or invest. Deposits to Stash bank accounts are FDIC insured up to the legal limits through a partnership with Green Dot Bank.

Investments with Stash are protected for up to $500,000 through partner company Apex Clearing Corporation.

2. Pricing

Stash offers three account levels for various investing, budgeting, and banking needs. Stash Beginner is an entry-level account with basic banking, budgeting, and investing features.

Stash Growth adds access to Stash Smart Portfolios and retirement IRA accounts.

Stash’s premium account option is Stash+, which comes with all of the features from the Growth account plus access to custodial accounts for children and Stock-Back Card rewards and exclusive bonuses.

Stash Plan

Price

Stash Beginner

$1/month
Stash Growth

$3/month

Stash+

$9/month

What Is Stash and How Does It Work

Stash was first launched in 2015 to democratize financial opportunity so every American has the tools and guidance necessary to grow their wealth through investing.

It was founded by Brandon Krieg and Ed Robinson, who is still involved with the company today as CEO and President, respectively.

Kreig and Robinson both came to Stash with extensive experience. Kreig spent more than 20 years in the fintech industry and co-founded EdgeTrade, an electronic trade execution company. Robinson, on the other hand, came from Macquarie Securities Group, which is a large investment bank.

How Does Stash Work?

Stash offers users a wide variety of different ways to make money, including opening a taxable account so you can begin investing your cash in the market.

You can also use a debit card that offers rewards in the form of stocks or funds.

Various programs have different features and fees, so it’s important to understand all the ways you could grow your wealth by using its products.

1. Stash Debit Card

The debit card is available to you if you open a banking account with Stash.

This account charges no monthly maintenance fees, charges no overdraft fees, has no minimum balance requirements, and charges no fees for direct deposits, ACH transfers from other banks, or obtaining your debit card.

You can also make withdrawals from more than 19,000 ATMs without paying any fees — although you do have to pay $2.50 if you use your card at a non-participating ATM or if you withdraw funds from a teller.

2. Stash Investments

Stash offers a simple investing app that allows you to start with just a $1 investment and build a portfolio of individual stocks, bonds, and exchange-traded funds (ETFs).

You can choose from three different investment account options:

1. Stash Beginner

This plan costs $1 per month4 and includes a personal investment account. It also comes with financial education for new investors and a debit account, which enables you to earn Stock-Back.

2. Growth

This $3-per-month4 intermediate account comes with a personal investment account as well as a retirement investment account.

You’ll have your choice of a traditional or Roth IRA (Individual Retirement Account)

Stash will help you pick the best account type for your situation. You can also earn Stock-Back from the debit account and get financial education, just as you do with Stash’s cheaper option.

3. Stash+

This account offers you a personal investment account, plus a retirement investment account and a custodial investment account for up to two children.

It costs $9 per month4 and comes with financial education as well as monthly market insight reports.

You can earn Stock-Back with this plan as well you get double Stock-Back compared with the Beginner account and you get a metal debit card rather than a typical plastic card.

Each of these plans enables the purchase of fractional stock shares and gives you a choice of how to fund your investment accounts:

Investing on a set schedule: You can set recurring transfers5 from your bank account so you save automatically.

3. Round-ups

Purchases you make with your debit card are rounded up to the nearest dollar, and the “spare change” from every purchase is invested for you.

4. Smart Portfolios

Investors who choose either the Growth or Stash+ tiers will also have the option to invest in Stash’s Smart Portfolios.

These carefully designed portfolios make it so you don’t have to make all your individual investing decisions. Stash will also rebalance your portfolio for you, as well as reinvest your dividends.

What Is Stash Bank Account

Stash Bank Account

Here are some of the prerequisites for a Stash investment account:

You have a bank account with a U.S. bank.

You have a Social Security number.

You’re a U.S. citizen, have a Green Card, or have certain types of approved visas.

All you need to do is download the app, create an account, and choose the Stash plan that’s right for you.

You’ll also need to answer a few simple questions about your investment portfolio and risk tolerance — and you’ll need to be willing to pay Stash’s fees, which start at $1 per month for the basic plan.

How to Make Money with Stash

Maximizing your earnings with Stash is easy. You can earn more if:

You use your debit card more to get more Stock-Back, especially if you frequently shop at merchants offering a bonus of 5% back.

1. You Make Smart Investments

The performance of stocks and mutual funds is never guaranteed, and there’s always a risk of loss. But if you invest in companies or ETFs that perform well, you can maximize your gains.

2. You Invest More Money and Leave It Invested

The more you put into the market, the more you have the potential to earn (or lose).

If you set up frequent automated transfers to Stash, build a large portfolio, and leave your investments to grow, you may be able to build a huge nest egg over time if your investments perform well.

Using tools such as Stash Learn to help you become more thoughtful about picking investments and building a diversified portfolio can also allow you to maximize your earnings while minimizing your risk level.

How to Withdraw Money from Stash

When you sell an investment through Stash, that money will appear in your account approximately 48 hours later.

You can then transfer it to a linked bank account by logging into Stash via mobile or desktop and selecting the Transfer option. Next, you specify where you’d like to transfer funds and the total transfer amount.

After that, simply click Continue (in the app) or Confirm (on the website) and Make Transfer. You should see the funds in your bank account shortly afterward.

What Are The Fees?

Stash currently has three pricing options all flat-fee offerings.

Beginner — $1/mo: This plan offers a basic personal brokerage account and a Stash Banking account. It also offers financial guidance and provides access to up to $1k of life insurance through Avira.

Growth — $3/mo: This plan adds retirement investing and unlocks Smart Portfolios.

Stash+ — $9/mo: This is their most robust option and is for families who want to save and invest. You’ll get up to two custodial investment accounts for your children (note: these are not 529 plans).

You’ll also earn 2x stocks with the Stock-Back Card and the life insurance access increases to $10k.

Stash’s first two subscription tiers are identically priced to Acorns at $1/mo and $3/mo. But only Stash includes banking with its $1/mo plan.

It should also be noted that Acorns’ highest-priced plan is less expensive at $5 per month.

How to Open an Account

If you want to get started with Stash, the sign-up process is extremely simple. (After you sign up check the bottom of the post for ways to quickly grow that balance.)

1. Click Here To Get Started

Click here to check out Stash online and get started on your desktop.

Click here to get Stash on the App Store, you’ll be directed to the app store and you can download the app to your phone.

2. Fill Out Your Profile

Next, you’ll fill out your basic information and answer a couple of questions.

These questions will help Stash guide you in making investment decisions. It’s important that you’re honest with these survey questions because they help determine your risk tolerance.

This should only take a couple of minutes.

3. Choose an Investment

Based on the answers you provided, Stash will show you investment options that line up with your risk tolerance (conservative, moderate, or aggressive.)

You can click on the different investments to learn more about them. (Don’t worry they’re explained in layman’s terms!)

The great thing about it is that they make investing relatable. Instead of crazy names of ETFs and ticker symbols, you invest in “themes” that are based on your wants, beliefs, or likes. We’ll talk more about that below.

4. Link Your Bank Account

Link up the bank account you want to have money withdrawn from to make your investments.

It takes about 2-3 days for the money to transfer into Stash.

5. Confirm Your Identity

Verify your identity, create a four-digit PIN and you’re all done.

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Stash Pros and Cons

Every investment app has its pros and cons. Here are some of the advantages and drawbacks of Stash.

Pros

There is no account minimum balance and you can start investing with as little as $5.

No trading fees or commissions.

ETFs are broken down by category, so you can see exactly what types of companies you’re investing in, and make decisions based on your interests or beliefs.

Educational tools and resources.

Auto-Stash helps you automatically invest via round-ups and recurring transfers.

You get the option to the bank, invest and save money for retirement in a single app.

Helpful automatic saving and investing tools

Fractional share investing starts at 1 cent

Portfolio suggestions built to match your risk level

No trade fees or commissions

Cons

Stash costs between $1 to $9 per month to use. When you compare that to your returns, especially if you have a small account balance, the monthly fee might not be worth it.

Stash Smart Portfolios don’t offer tax-loss harvesting, an investment strategy that helps reduce your yearly tax burden.

The app doesn’t offer access to a human financial advisor or live investment advice.

Investing involves risk. Even though you’re investing small amounts of money, you’re still playing with the stock market, so it’s possible to lose money.

A flat monthly fee is on the high side, especially for smaller accounts

No wealth management services

Ways to Invest With Stash

Stash is a micro-investing platform that offers a wide variety of individual stock and ETF investment choices.

Ways to Invest

Fractional share investing, starting at 1 cent, is available for each of the investments on Stash’s platform.

The platform also allows you to automatically reinvest any dividends you earn. You can use this feature for any of your Stash investing, retirement, or custodial accounts.

1. Fractional Shares

Individual share prices of some stocks can be very expensive. For example, at the time of this writing, one share of Apple stock would cost you over $100. And you’d need over $3,200 to buy one share of Amazon.

But with Stash, you can buy little pieces of these companies, called fractional shares, at any dollar amount.

Fractional share investing is a great option for investors who don’t have loads of money to invest but still want to own top stocks and ETFs.

2. Automatic Investing Tools

Being able to start investing with as little as $1 is great.

But you still need to find a way to carve out space in your budget to save that $1, $50, or however much you hope to invest per month. Thankfully, Stash can help with that too.

All Stash subscribers are given access to a suite of automatic saving and investing tools called Auto-Stash. Here’s what Auto-Stash includes:

Set Schedule: Save and invest automatically according to a recurring schedule

Round-Ups: Link a debit card to save and invest your spare change from each transaction

Smart-Stash: Let Stash analyze your spending habits and transfer “extra” money automatically

Each of these tools is designed to help you save more each day and month. You can choose to move these funds to your cash balance until you’re ready to invest them.

Or you can choose to immediately invest your savings in an investment you already own in your portfolio.

3. Portfolio Builder

Stash’s Portfolio Builder is similar to a Robo-advisor, offering investors a predetermined diversified portfolio that matches your risk profile, but it does not actively manage these portfolios as a Robo-advisor would.

To start with Portfolio Builder, Stash will ask you to identify your risk tolerance. You’ll be given three options:

Conservative, Moderate, or Aggressive. Regardless of your risk level, your money will be invested in the following six ETFs:

Match the Market (IVV)

Happy Medium (IJH)

Up and Coming (VWO)

Small but Mighty (VB)

Foreign Heavyweights  (IEFA)

Broad USD Bonds (IUSB)

Your risk level will determine how your money is allocated to these funds.

If you’re an aggressive investor, you may have greater exposure to the Up and Coming ETF and limited exposure to the Broad USD Bonds ETF.

And the opposite may be true for those with a conservative investment profile.

4. Retirement and Custodial Accounts

Stash offers both Traditional and Roth IRA accounts, and you can use Stash to open custodial investment accounts for kids.

Unlike 529 plans, custodial accounts don’t have to be used towards education expenses.

And you can contribute up to $15,000 per year ($30,000 per year for a married couple) to your child’s account without having to pay any gift tax.

Note that custodial accounts can affect a student’s financial aid eligibility.

Stash Features

Account Types

Roth

Traditional

Taxable

Custodial

Tradable Assets

Stocks

ETFs

Account Minimum

No investing minimums¹

Commissions

$0
Account Fees

Stash Beginner: $1/month

Stash Growth: $3/month

Stash+: $9 per month

Automatic Rebalancing

Yes

Tax-Loss Harvesting

No

Access To Human Advisors

No

Margin Trading

No
Banking Services

Yes

Customer Service Number

(800) 205-5164
Customer Service Email

[email protected]

Web/Desktop Account Access

Yes
Mobile App Availability

iOS and Android

Promotions

Get a $5 bonus after your first deposit of $5

How Much Does Stash Cost?

Stash offers three subscription plans that charge monthly fees. There are no trading fees or commission fees.

How Much Does Stash Cost

1. Stash Beginner: $1 Per Month

The Stash Beginner plan costs $1 per month and gives you access to a personal portfolio investment account, a Stash bank account, and a debit card.

You can pick your stocks and ETFs, but the automated portfolio option isn’t available with Stash Beginner.

2. Stash Growth: $3 Per Month

If you want access to a retirement investment account, or the Smart Portfolio automated investing feature, you’ll pay a $3 monthly fee.

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3. Stash+: $9 Per Month

Stash+ costs $9 per month and gives you access to two custodial investment accounts for children.

Stash+ members get a fancy metal debit card and earn double Stock-Back rewards, a program that lets you earn pieces of stock when you shop.

You can also opt into $10,000 worth of life insurance offered by Avira.

FAQs on What is Stash

Some faqs about what is stash


1. Is stash legitimate?

Yes, Stash is an app that provides a lower barrier to entry for individuals who want to start investing.

The app also comes with a bank account backed by Green Dot Bank. Stash is a registered investment advisor with the U.S. Securities and Exchange Commission (SEC).


2. What is Stash and how does it work?

Stash is a tax-free investment that helps you invest in your future by saving small amounts of money every day via an app.

You can stash automatically from a connected bank card from as little as R5 per day, or simply stash at any time with a press of a button.


Is stash good for making money?

Stash indicates that its users save an average of $1, 4329 per year by using the company’s tools.

However, the amount of money you can earn with Stash will depend on how much you invest and how your portfolio performs over time.

Investing comes with some level of risk, no matter which investments you make.


3. Why does stash keep taking money from my account?

It sounds like you either have Auto-Stash or Smart-Save turned on. Auto-Stash is Stash’s automatic investment tool.

It runs on a set schedule, so head to the app and adjust the timing or turn off Auto-Stash if you’d like to stop automatic deposits/investments.


4. Can I withdraw money from Stash?

Generally speaking, you’re free to transfer or withdraw money out of Stash whenever you want.

There are a few caveats, though: If you have investments, first you have to sell those and wait for the SEC-mandated holding period to be over.


Is Stash good for beginners?

Stash is best for beginners who want automatic investing options with the freedom to choose investments.

With fractional shares, subscribers can invest in thousands of securities at any dollar amount. Its fees start at $1, which may be higher than fees charged by other apps for small balances.


5. Is Stash safe for SSN?

Stash takes safeguarding your personal information very seriously—we use it only for identification purposes, and we never perform credit checks.

As a financial service institution, we’re required by law to obtain, verify, and record identification information.


6. What banks work with Stash?

All Stash accounts come with a bank account serviced by Green Dot Bank. The bank account has no minimum balance requirements, no overdraft fees and no monthly services fees.


Is Stash better than Robinhood?

Robinhood and Stash both appeal to DIY investors. Robinhood offers free trading and appeals more to active investors, while Stash offers far more educational content and the option for a managed portfolio.


7. How long does it take to withdraw from Stash?

Your money is removed immediately from a Stash account when transferred from Stash to an external bank account.

However, it may take funds up to 5 business days to appear in that external account. The exact length of time depends on how quickly your bank processes ACH transfers.


8. Why can’t I withdraw my money from Stash?

If you still have investments, you’ll need to sell those before withdrawing your money.

The money from the sale will be held for two business days (in accordance with SEC regulation) before you can move it to your bank account.


What happens when you sell stock Stash?

The way we initially attempt to charge the fee differs. We’ll try to pull from your Portfolio cash, linked debit/credit card, or Stash Banking1 balance first.

If that doesn’t work, then we’ll sell a portion of your holdings in your Personal Invest Portfolio to cover the fee.


9. Can I use my Stash card at ATM?

With a Stash banking account, you will have free access to over 19,000 ATMs within the Allpoint ATM network. Enter your location to find an in-network, fee-free ATM near you!


10. How do I sell my stock Stash?

From the Home screen, tap Invest on the navigation bar.

Select the investment you’d like to sell.

Tap the Buy/Sell button, then tap Sell.


How do I transfer money from Stash to the bank?

Open the app · Tap the Transfer button on the bottom of the screen · Select the accounts you wish to move money from and to · Enter the amount you wish to transfer.


11. Is there a limit on Stash?

With the Stash app, you can deposit or withdraw up to $10,000 per day. You can’t link more than one bank account to your Stash account.

Overall, Stash offers you hands-on control of investing. It also provides investing tips and guides to help you make informed decisions.


12. How much does it cost to sell stock on Stash?

Stash customers can withdraw from their Smart Portfolio at no cost, and there are no fees for selling investments.


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CSN Team.

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