Is Stash a Brokerage Account or a Savings App

Stash is often misunderstood as a savings app, but it's actually a brokerage account that offers a unique investing experience.

You can invest as little as $5 in a variety of ETFs and stocks through Stash.

Stash is a mobile-only investment app that allows users to invest small amounts of money into a range of assets.

The app is designed to be user-friendly and accessible, making it easy for beginners to get started with investing.

Stash offers a range of investment options, including ETFs and stocks, which are all diversified and professionally managed.

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Stash offers a range of benefits for investors, including no account minimum for basic accounts and extensive educational material.

The platform's innovative Stock-Back card pairs spending with stock rewards, making it easy to invest small amounts over time.

Some of the key pros of using Stash include:

Stash offers a user-friendly experience with no account minimum for basic accounts, making it accessible to new investors.

One of the standout features of Stash is its extensive and readily accessible educational material.

The innovative Stock-Back card pairs spending with stock rewards, allowing users to earn rewards while making purchases.

However, Stash lacks tax-loss harvesting or other tax optimization strategies, which can be a drawback for some investors.

For those who want to invest in a retirement account, Stash doesn't offer automated IRA portfolio management.

Human financial advisors are also not available through Stash, so users will need to rely on the platform's automated guidance.

Here are some of the key pros of using Stash:

Stash has its limitations, and it's essential to be aware of them before investing. One major con is that it acts like a robo-advisor, but it doesn't provide any account management, leaving you to handle everything on your own.

Another drawback is the lack of tax-loss harvesting or any tax services, which can be a significant disadvantage for investors who want to minimize their tax liability. This means you'll have to do your own research and planning to optimize your tax strategy.

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One thing that might be a surprise to some users is that there are no human brokers or advisors available to provide guidance or support. This can be a challenge for beginners who are new to investing and need a little extra hand-holding.

If you do decide to use Stash, be prepared to manually rebalance your portfolio based on alerts. This can be time-consuming and may not be the most efficient way to manage your investments.

Finally, it's worth noting that Stash's fees can be high, especially for smaller accounts. To save money, you'll need to invest more, but beginners might not realize how much they're paying compared to a traditional brokerage.

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Stash takes security seriously, with robust features in place to protect your data and information.

Two-factor authentication adds an extra layer of security, requiring a second form of verification to access your account. This makes it much harder for unauthorized access to occur.

You can also use biometric entry, such as a fingerprint scanner or face recognition, to securely log in.

Stash is covered by the Federal Deposit Insurance Corporation (FDIC) and Securities Investor Protection Corporation (SIPC), which provides protection for your deposits up to $250,000.

You can also lock and unlock your debit card through the Stash app, giving you complete control over your account.

Here are some of the key security features offered by Stash:

Stash makes the account sign-up process simple and straightforward, allowing you to enter personal information and select the first stock you'd like to invest in from a menu.

You have flexibility to save the investment selection until later in the process, and you'll be prompted to pick the subscription plan and add a credit card to enroll.

Stash offers two subscription options: Growth for $3 monthly and Stash+ for $9 monthly.

The Growth tier includes digital advice tailored towards new investors, a personal investment account, Stock-Back card access, and more.

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The Stash+ tier includes everything on the Growth tier supplemented with digital advice for family finances, market insights, and two kids' portfolios.

You can link your bank account to invest with Stash, and before your funds are invested, you'll be able to view your allocation to ensure you're comfortable with the portfolio.

Stash provides a diversification analysis tool that evaluates how well your self-selected investments are diversified on the platform.

Here are the available investment account types with Stash:

You can choose how to finance your investment accounts and buy fractional shares of stock with both Growth and Stash+ schemes.

You can also set up periodic transfers from your bank account to save money automatically, or use round-ups to invest spare change from debit card transactions.

Stash provides a straightforward investing tool that enables you to create a portfolio of individual stocks, bonds, and ETFs with an investment of only $1.

You can choose from nearly 4,000 stocks, ETFs, and REITs, and take advantage of fractional share investing for more investment options.

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Stash offers two types of investing accounts: Growth and Stash+. The Growth account costs $3 per month and has both a personal and a retirement investment account. The Stash+ account costs $9 per month and includes a custodial investment account for one or two children.

With Stash, you can invest on a predetermined schedule by setting up periodic transfers from your bank account to save money automatically.

You can also use the Round-ups feature, which rounds up your purchases to the nearest dollar and invests the spare change for you.

Here are the investment options available on Stash:

Stash's Smart Portfolio is a fully managed service that follows a passive, risk-optimized approach to building wealth. The portfolio features a sliding scale to adjust the risk level to your preferences, goals, and financial situation.

You can also select your own investments or use Stash's fully managed service, Smart Portfolio.

The Stash app offers a range of features and tools that make investing accessible to everyone. You can open an account with as little as $1 and start investing with fractional shares.

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One of the standout features of Stash is its Stock-Back Card, which allows you to earn up to 1% Stock-Back on purchases up to $1000. This can be a great way to get started with investing and earn rewards on your everyday purchases.

Stash also offers a range of investment options, including individual stocks, bonds, and ETFs. You can choose from over 60 different ETFs and create a portfolio that suits your investment goals and risk tolerance.

The Stash Invest Portfolio Builder tool uses a digital risk tolerance questionnaire to determine your risk level and place your money into a globally diversified fund. This makes it easy to get started with investing and feel confident in your investment choices.

You can also set up automatic transfers from your bank account to save money and invest regularly. This can be a great way to make investing a habit and achieve your long-term financial goals.

Here are the different types of Stash investing accounts available:

Overall, Stash offers a range of features and tools that make investing easy and accessible. Whether you're a beginner or an experienced investor, Stash has something to offer.

Stash's pricing model is unique in the robo-advisor industry, where you pay a flat monthly subscription fee rather than nickel-and-diming you for each trade. The fees are $1, $3, or $9 per month, depending on the plan you choose.

There are no add-on trading commissions, so you won't be charged extra for buying or selling securities. However, you will need to pay an ETF expense ratio, which typically ranges from 0.06% to 0.75% in addition to the monthly fee.

Here's a breakdown of the monthly fees for each plan:

Stash also charges a $75 transfer-out fee if you want to move your account to another institution. However, you can avoid paying hidden fees by using Stash's banking service, which is FDIC-insured and has no overdraft, minimum balance, set-up, or hidden fees.

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Stash's pricing is quite straightforward, with three monthly subscription tiers to choose from. The cheapest option is $1 per month, which includes a brokerage account, online bank account, and debit card with a rewards program.

You can also opt for the $3 per month plan, which adds a retirement account to the mix, either a Roth or traditional IRA. This plan is a good starting point for those looking to save for the future.

The highest tier, $9 per month, includes all the features of the previous plans, plus two custodial accounts for minors, a metal debit card, and a monthly investment research report. This plan is ideal for those who want to take their investing to the next level.

Here's a breakdown of the features included in each plan:

One thing to note is that Stash doesn't charge any trading commissions, making it a great option for frequent traders. However, keep in mind that you will need to pay an ETF expense ratio, which typically ranges from 0.06% to 0.75% of your investment.

You can generally move or withdraw money from Stash whenever you like, but there are certain restrictions.

If you have investments, you must first sell them and hold the proceeds until the SEC-mandated holding period expires.

Transfers or withdrawals generally take up to 5 business days to appear in your external account.

Business days are Monday through Friday, except for US bank holidays.

It can take a little longer if you start the transfer on a weekend or holiday.

Investopedia thoroughly reviews and rates robo-advisors, including Stash, using a comprehensive data collection process that spans several months.

Their review process involves sending a 64-question survey to each company, verifying the responses, and collecting additional data points through online research and conversations with the companies directly.

Investopedia develops a quantitative model that scores each company across nine major categories and 59 criteria to find the best robo-advisors.

The rating system includes categories such as Expense Ratios, Account Types, Investment Options, and Responsible Investing, which help investors make informed decisions.

Here's a summary of Stash's ratings:

We use a comprehensive rating system to evaluate robo-advisors, which involves scoring each company across nine major categories and 59 criteria.

The rating system assigns different weights to each category, with some categories carrying more importance than others. For example, goal planning accounts for 21% of the overall score, while account setup accounts for only 5%.

Our team of researchers verified the survey responses and collected any missing data points through online research and conversations with each company directly. This ensures that the ratings are accurate and unbiased.

To give you a better idea of how we rate robo-advisors, here's a breakdown of the categories and their corresponding weights:

We also conduct a survey of current clients to gather valuable insights and inform our ratings. This survey is separate from the ratings model and doesn't influence the development of our ratings.

Stash is a great option for new investors who want to learn about investing and have flexibility in creating their own portfolios or using an automated portfolio management service. The educational content is excellent and easy to understand.

The banking product also gives users more control over their financial lives in one place, making it a strong option for newer and younger investors to manage money effectively. As your investment account balance grows, the subscription model gets cheaper in real terms.

Experienced investors, on the other hand, might find Stash lacking in robust portfolio management and human advice. Additionally, Stash has limitations in that you can only use the robo-advisory part in taxable investment accounts with no tax optimization.

Here are some key ratings to consider:

Stash is an excellent choice for beginner investors, eliminating the two biggest obstacles in conventional investing: excessive prices and complicated information. With Stash, investing is simple, and you can start securing your financial future in as little as five minutes.