Stash Review 2024: A Smart Choice for Small Investors
Written by
Thomas Streissguth
Edited by
Emily Gadd
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
GOBankingRates Score
-
Cost and Account Types
4.0
-
Investments and Portfolio
4.0
-
Features and Tools
3.5
-
Customer Experience
3.0
Pros
- Variety of investment choices
- Good banking and budgeting options for beginning investors
- Fractional shares available
Cons
- No interest paid on banking option
- Can be expensive for smaller balances
- No access to financial advisors
Investing in stocks used to require a real money commitment. There were applications to complete, and applicants had to show good credit and available funds. There were fees and commissions to pay on trades, and brokers served as the gatekeepers to the markets.
But the road to wealth accumulation in the stock market has broadened. Now, there are plenty of low-cost trading options for those with limited funds, allowing them to access the markets even with limited investable funds so they can get into the markets and build wealth. Stash is one worth considering.
What Is Stash?
Stash is an investing app for beginners. “Stashers” have access to a low-cost trading account that provides them with guidance on successful trading strategies as well as savings and money management tools. The goal is to inspire good money habits and help customers set and achieve their financial goals.
The platform is geared toward those with minimal investing experience. The Stash app maintains a curated list of over 3,800 companies in many different sectors. The recommendations are based on the customer’s risk-tolerance level. Those who want to avoid higher risk are steered to safer investments.
There are custodial accounts available for minor children. The platform can set up IRAs for retirement accounts, while the banking tool offers direct deposit, savings guidance, overdraft protection and other useful features.
Thanks!
Stash operates in a crowded field of “robo-advisers,” assisting users with planning and managing their financial assets. These apps are slightly different in their features and costs. Before diving in, do some research to find the savings and investment platform most suited to your needs and wants.
How Stash Works
Stash offers a variety of features and tools on its platform.
Banking
Banking features on the Stash platform include a digital checking account with no minimum balance and no overdraft fees. Direct deposit paychecks can be received up to two days early.
Account-Linked Debit Card
The Stock-Back debit card earns shares rather than cash as purchase rewards.
For example, using the Stock-Back card at Amazon, Costco Wholesale or Apple can reward customers with shares of those respective companies.
Budgeting
Budgeting tools allow customers to track spending and set up personalized savings goals. These can be set up to run automatically with a feature called Auto Stash.
Round-ups and automatic savings and investing leave the details to the app and relieve the customer of the need to constantly monitor and adjust how the money is handled.
Stock Party
The Stash Stock Party is a unique regular event at which shares of featured companies are offered free to registered participants.
Stash also offers fractional shares. An investor wanting a piece of Apple was at one time obliged to buy at least a share, and anything less than a “round lot” of 100 shares carried a higher “odd lot differential” fee.
Fractional shares allow Stash clients to invest any amount they want, so the $225 price of a single share of Apple or $445 for a share of Microsoft won’t deter them. This has become standard practice on self-managed investment platforms, with Charles Schwab, Robinhood, SoFi and more all permitting fractional share purchases.
Investment Options on Stash
Stash offers a variety of investment options on its platform, from ETFs and stocks to smart portfolios. Here’s a look at what you can buy on Stash.
ETFs and Stocks
There are more than 3,800 stocks and ETFs available to Stash investors. This curated group of companies includes a wide variety of economic sectors, including:
- Energy
- Health care
- Real estate
- Media
- Consumer goods
The site highlights prominent companies in each sector and offers pages giving basic information and price charts for these companies. For example, the pharmaceutical and medical group recently included pages on Medtronic, Novavax, Inc. and Haemonetics Corp.
ETFs are exchange-traded funds, which are portfolios of multiple stocks grouped by an investment theme or sector. ETF shares are traded on an exchange like regular stock shares, and can be actively or passively managed. Stash ETF names reveal their investment approach. Some ETFs include:
- Inflation Defense
- Fallback Funds
- Public Works
- Rate Hike Refuge
Smart Portfolios
The Smart Portfolio is an investment product that Stash manages on behalf of its customers. For each customer, a portfolio of stocks and bonds is balanced according to the customer’s own investment goals and tolerance for risk.
Cryptocurrency Investments
As of late 2023, Stash no longer offers cryptocurrency.
Stash Fees and Pricing
There are no fees associated with the banking services. Stashers pay $3 or $9 per month for the different account levels. The higher the fee, the more features available to the user.
Subscription Plans
The Stash Growth plan, costing $3 monthly, offers a wide variety of features, including the following:
- Banking
- Investing
- Personalized advice
- Savings tools
- A Stock-Back card, offering 1-2% in stock on card purchases
- A $1,000 life insurance policy
- Retirement guidance
- IRAs (traditional or Roth)
- A Smart Portfolio account
The Stash+ plan, the top tier at $9 monthly, also offers:
- Up to 3% in Stock-Back bonuses
- A $10,000 life insurance policy
- More advanced investment research and guidance
Stash+ also offers custodial accounts for children. A parent, family member, friend or guardian registers a Kids Portfolio and then manages it for the child’s benefit until they reach the age of majority in the state where they live.
Stash does not charge trading fees, and no minimum balance is required. Individual trades on Stash are not charged a commission, and only $1 is required to open an account (plus the $3 or $9 monthly fee). Pioneered by Robinhood, this has become standard practice throughout the brokerage industry.
Additional Costs and Charges
Stash doesn’t have a lot of additional fees and charges. Here’s a list of the ones you may encounter:
- Out of Network ATM Withdrawal Fee: $2.50 per event
- Out of Network ATM Balance Inquiry Fee: $0.50 per event
- Stash Bank to External Debit (an instant withdrawal): 1% fee per transfer
- Mastercard® Debit Card Foreign Currency Conversion Rate: 3%
Good To Know
There’s no fee to transfer funds into and out of the Stash accounts, but Stash advises that it can take up to five business days for money to show up when transferred to an external account. When investments are sold, there is a two-day clearing period before the transaction funds are available.
Customer Experience
Stash offers email and phone support at support@stash.com or 800-205-5164.
The customer experience on the Stash app seems to vary between Google Play and Apple’s App Store users. As of July 2024, Stash had garnered a 3.7 rating from 104,358 users on Google Play, but 306,618 users on the App Store give the Stash app a 4.7 rating. The app has also earned a spot on Forbes’ Best Budgeting Apps list.
Benefits of Using Stash
The main benefit of using Stash is that it provides a user-friendly way for beginning investors to learn about and get involved in the markets for a small amount of money. The app offers good basic budgeting and financial planning tips, and the debit card provides stock rewards that can build portfolios just for making everyday expenditures.
Drawbacks and Limitations
While Stash has a wide variety of features and benefits, it’s not a comprehensive investment solution, particularly for intermediate or experienced investors. Those with less money to spend, who are the most likely to use the app, may find that the fees charged actually amount to a somewhat sizable percentage of their account balance. For example, if you invest $1,000 using Stash+, you’ll pay $108 in annual fees, which is more than 10% of your account balance.
Stash vs. the Competition
Several low-cost personal investment apps have arrived in the past few years, with many offering a menu of features quite similar to Stash. Here’s how the Stash account matches up with close competitors.
Stash vs. Betterment
Betterment allows users to make automatic deposits, get investment advice based on their goals and risk tolerance, and track outside accounts. The major difference is in pricing. While Stash offers two account levels, Betterment charges a flat $4/month on accounts that changes to a 0.25% annual fee for investment accounts with $20,000 or more in assets or that have at least $250/month in direct deposits. Those wishing to use the services of a financial advisor — and who have at least $100,000 in assets — will pay 0.65% annually. No-fee checking and money market accounts are also available.
Stash vs. Robinhood
Robinhood pioneered no-commission investing, allowing fractional share purchases and easy access to initial public offerings. The popular mobile investing app also offers free stock for new accounts, linking to outside bank accounts and referring new users.
Stash vs. Acorns
Acorns offers three account plans, at $3, $6 and $12 per month. Smart portfolio investments, cryptocurrency and retirement accounts are available. The banking side offers fee-free checking, a debit card that helps users invest small amounts with round-ups and two-day early direct deposits. Acorns adds an ATM network for further convenience.
Stash vs. Ellevest
A robo-advisor investment app designed for women, Ellevest features an investing algorithm that accounts for career breaks, a longer lifespan and pay gaps. Users can take advantage of one-on-one financial coaching and regularly scheduled workshops on money and investments. There is a single basic account level, costing $12 per month. This fee includes all investment and educational services and provides 50% off financial planning sessions. Those with $1 million or more to invest can avail of Private Wealth Services for 0.05% to 0.19% per year. The Ellevest debit card offers cash back on purchases.
Who Should Use Stash?
Anyone looking for a simple, convenient and low-cost way to begin saving their hard-earned money can benefit from the Stash platform. The three account levels provide flexibility to savers and investors, with higher levels offering more in the way of tools and advisory services.
The platform is especially useful for those needing more discipline when it comes to their finances. The automatic settings can help put wealth accumulation on autopilot, allowing customers to “set it and forget it” and dispense with a lot of paperwork and decision-making.
How To Get Started With Stash in 2024
Stash operates in a crowded field of “robo-advisers,” assisting users with planning and managing their financial assets. These apps are slightly different in their features and costs. Before diving in, do some research to find the savings and investment platform most suited to your needs and wants.
To join Stash, new customers must be at least 18 years of age. Users will need a Social Security number, a U.S. bank account, citizenship or a green card and at least $1 for the initial deposit.
Create an Account
- On the home page, click “Get Started.”
- Enter a password and email address.
- Tap “Create Account.”
- Go through the shortlist of questions to reveal your financial goals and approach to investing.
- Select a payment plan from the three options available: Stash Beginner, Stash Growth or Stash+.
- Add funds to your account. Transfer from your existing bank account or set up paycheck direct deposit.
- Various features of the account type chosen, including IRAs, life insurance and direct deposit, are now available with a few clicks.
Tips for Maximizing Your Investment
To maximize your investment with Stash, you should boost your account value as quickly as possible so that fees don’t eat up the bulk of your portfolio. After that, avail of the wide variety of investment options that Stash offers to optimize your portfolio and maximize your risk-return ratio.
John Csiszar contributed to the reporting of this article.
Rates and fees are subject to change.
Editorial Note: This content is not provided by Stash. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Stash.
GOBankingRates maintains editorial independence. While we may receive compensation from actions taken after clicking on links within our content, no content has been supplied by any advertiser prior to publication. We always recommend reviewing the terms and conditions of any offer before signing up or applying.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
