The Stash app is a digital investment account that combines the advantages of a brokerage account, a robo-advisor, and a traditional online bank. It’s a simple and straightforward platform, making it a viable option for novice investors. A word of caution, though: Stash’s flat-fee structure can make it quite pricey compared to the competition, specifically for smaller portfolios.
Who Is Stash Best For?
Stash is a great option for those just getting their feet wet in the world of saving and investing. This user-friendly platform provides new investors with a centralised mobile app for managing their entire investment portfolio.
Stash users get both an investment and a checking account in one convenient place, streamlining their money management. Rounding up purchases made with a Stash debit card to the nearest dollar then deposits that amount into your brokerage account is one way to gradually fund your investment.
Stash’s robo-advisor feature chooses and manages investment assets in accordance with your risk profile and financial goals. Investors who prefer to take matters into their own hands can create custom portfolios, and a limited number of cryptocurrency assets are also available.
All this ease of use, however, does not come cheap. When compared to other options, Stash’s flat monthly subscription fees, which amount to just a few dollars a month even for smaller portfolio balances, are quite pricey. The account is not a good choice for savings because it does not provide an annual percentage yield (APY).
A specialised robo-advisor platform is likely to offer the best value if you’re looking for a high level of service. Anyone interested in developing their own investment strategy should look into opening an online brokerage account. If you’re looking for an app to stash your cash with a high APY, an online savings account is a good option to consider.
The online bank account can be opened with a single dollar, but a debit card will require a minimum deposit of one dollar. There are no charges for going over your limit or keeping an insufficient balance, and no charges for maintaining your account each month. Your funds will be held at Stride Bank, a partner of Stash.
Transferring money between your investment account and checking account is instantaneous. Withdrawals are free at more than 55,000 ATMs worldwide, and deposits can be made at any CVS, Rite Aid, or Walgreens that accepts the card.
For all purchases made with a debit card, the cardholder will receive a reward equal to one percent of the purchase price in stock. Choose a stock as your incentive and have it added to your investment portfolio.
As was previously mentioned, your investment account will receive any spare change from rounding up your debit card purchases.
Stash is a mobile app that lets you pay with your online bank account. It also helps you keep tabs on your money by including budgeting tools. Finally, the account allows you to access your funds two days before your scheduled payday if you are paid via direct deposit.
Functions of a Budget
Stash lacks advanced budgeting tools present in competing apps. However, the banking features of Stash allow users to save for specific goals and have money automatically put away. Users can track spending with Stash, which will help you understand your expenses better and provide guidance when planning your monthly budget.
Security \sStash uses the latest security measures to protect its customers, including 256-bit encryption, biometric authentication and other cutting-edge technologies.
Through their partnership with Green Dot Bank, Stash customers have their deposits insured by the FDIC up to the maximum allowed by law. Investments with Stash are protected up to $500,000 through partner company Apex Clearing Corporation.
All the Money You’ll Spend on Hidden Fees and Expenses
Stash generates income from subscription fees. Two options are available, with Stash Growth costing $3/month and Stash+ costing $9/month.
The cheaper Stash Growth plan offers users a checking account, a brokerage account, and the robo-advisor, as well as some limited investing advice and a $1,000 life insurance policy. At this juncture, custodial accounts are out of the question, so you’ll need to open either a taxable brokerage account or an Individual Retirement Account (IRA).
Moreover, custodial accounts are a part of Stash+. Access to investment information and guidance tailored to families is provided as well. Additional benefits include a free 10-year term life insurance policy worth $10,000.
Stash+ improves upon the stock rewards programme associated with debit cards. Up to $1,000 in monthly spending qualifies for 1% stock rewards. If your total purchase amount is over $1,000, you will no longer be eligible for the “stock back” reward until it reaches $4,000. Over and above this threshold, you will receive 0.125% stock back on your purchases. The percentage of stock rewards earned on purchases made with the Stash Growth account is 0.125 percent.
Keep in mind that buying funds may incur additional fees in addition to Stash’s monthly subscription fee. Fees for investing in ETFs are expressed as an annual percentage of the value of the ETF’s underlying holdings. Before investing in an ETF, the app will show you how much you will pay annually in fees.