Stash Review 2024: Fractional Share Investing

review-rating
Making investing approachable and catering to first-time investors looking to enter the world of investing without needing a lot of capital.
9/10
Cost
8/10
Features
9/10
Ease of Use
9/10
Add-ons
9/10
Let's face it – you've been told to invest but honestly don't know how to get started.
Understanding the stocks you see in the news, which companies are on the rise, and which are faltering is time-consuming and confusing. And you might still be trying to establish a financial footing, which means you can't afford to pay someone else to manage your investments.
That’s where Stash comes in. It wants to make investing approachable and cater to first-time investors looking to enter the investing world without needing a lot of capital.
Learn how their app works and how you can start in our Stash review below.

What is Stash?

Stash is an investing app founded in 2015 by Wall Street investors Brandon Krieg and Ed Robinson, who wanted to help everyone invest, regardless of income. Today, the company manages over $3 billion in assets, and it has over 6 million customers who invest in thousands of stocks, ETFs (exchange-traded funds), and cryptocurrencies.

How does Stash work?

Stash provides a beginner-friendly approach to investing and underscores its importance as a long-term endeavor. As such, investing even small amounts of money can matter.
Plus, Stash diversifies your investments, so you aren't putting all your funds in one place.
To become a new investor and enroll in the investment app, start by entering your email address. You will then be guided through a questionnaire to create your financial profile and select your plan.
Stash Review 2024: Fractional Share Investing
You'll select your investment interests to help determine your financial profile. You will be required to provide your SSN, but it is not used to check your credit and will not affect your credit score.
The entire signup takes less than 10 minutes, and you can choose the best plan for you, as I'll detail below.
You will continue to be guided easily through the steps of choosing and enrolling in the features of the Stash account you select.

How much does Stash cost?

Unlike other apps touting free investing services, Stash is a paid service beginning at $3 per month, with its highest level of service climbing to only $9 per month.
The pricing structure is a flat fee as follows:

Growth

Dip your toes in investing with this beginner account at just $3 monthly. It includes a personal investment account, a bank account with a Stock-Back Card, $1,000 in Life Insurance from Avibra, and free financial education. But wait ... there's more! You also get access to retirement accounts (Roth and Traditional IRA) and choose to get paid up to two days early.

Stash+

The top-tier plan, which costs $9 a month, comes with everything in the Growth tier as well as access to market insights, an investment account for two children, 1% stock back (it's like cash back but with stocks), and an additional $9,000 in life insurance.
You are free to change your plan at any time to upgrade or downgrade, and the account opening of your Stash debit card is subject to bank approval.
No opening deposit is required for an investment account, but if you deposit $5, Stash will match it and give you $5 to invest.

Stash investing features

Fractional shares

Investing through Stash will provide you with fractional shares. This means rather than owning a share of stock at its full price. You can join the Stash community and pool your funds to afford high-priced, higher-earning stocks and receive a fractional percentage on the returns.
Your contribution is spread to its current individual stocks and ETFs. You can choose an investment portfolio of these stocks, using the suggestions that coincide with your goals.
The earnings you make on your investment are automatically reinvested, known as DRIP (dividend reinvestment program).

Automated investing

Set it and forget it! Stash's Smart Portfolio opens up a world of possibilities for the busy investor. During the sign-up process, you'll be asked a series of questions. How you answer these questions helps Stash gauge your risk tolerance. It will then recommend you a diversified portfolio based on your risk profile. On top of that, Stash will also automatically rebalance your investments.

Investment options

You can select your risk tolerance as you complete your enrollment questionnaire (and change it at any time). Risk levels are conservative, moderate, and aggressive. From here, you'll be directed to recommended investments for your preference.
  • Stocks. Fractional stocks are available to search in energy, finance, health care, industrials, materials, media, real estate, retail, tech, utilities, and consumer staples.
  • ETFs. Available ETFs include bonds, broad markets, commodities, diversified mixes, global exposure, goods and services, missions and causes, technology and innovation, and thematic categories.
  • Crypto. Stash lets you invest in blue-chip coins like bitcoin, Ethereum, and more. Stash recommends that you invest in crypto for the long term. Looking to trade crypto? That'll cost you between 0.8% and 1% per transaction.

Portfolio Builder

To help you select from your investment options, you can read about them in easy-to-follow reports that include the ticker symbol, last price, expense ratio, level of risk, and who the company is.
Stash Review 2024: Fractional Share Investing

Stock-Back debit card

Your Stash enrollment provides an online bank account through Stride Bank that does not require a minimum balance and does not charge overdraft fees. Your funds are available through over 55,000 fee-free ATMs.
The Stock-Back feature of this account doesn't give you cash back on your spending. Instead, you will receive stock from the retailers you shop at, such as Amazon. Stash offers 0.125% if enrolled in the Growth program and 1% if you are in the Stash+ program up to $1,000.
Stash Review 2024: Fractional Share Investing
And before you think this feature is only good at obscure retailers, know that Stash's Stock-Back is good when you shop at places like Walmart, CVS, Apple, and Amazon and when you are grabbing a bite at McDonald's, filling up the tank at BP, and shopping for groceries at Costco, among many, many others.
You can even earn up to 5% on certain brands regardless of which plan you've signed up for.
Stash Review 2024: Fractional Share Investing

IRAs

For investors who enroll in Stash+, choose a traditional IRA or a Roth IRA with as little as $5.

Financial management app

Your account will allow you to track your spending, pay bills, and save for goals with its budgeting and tracking tools. It also provides a retirement calculator.

Custodial accounts

Those enrolled in Stash+ receive custodial accounts for up to two children to help them learn and set up their investment accounts. These are available for anyone under 18, even if you aren't a parent, and also require just $5 to begin funding.

Stash banking features

After you receive a bank account with your enrollment in Stash, you'll want to know all the features you get access to.
First, you automatically get a debit card with no credit check (it uses your SSN to confirm your identity). This account is specifically built to earn without debt or interest — no APY or APR.

No fees

There are no fees associated with a Stash account. There are also no minimum balances you need to obtain. You won't be charged overdraft fees because you simply cannot exceed your limit. This means you may have a charge denied, but you won't be paying hefty fees and going negative.

Automatic investing

Because your investment and bank accounts are connected, you will not have to wait for your investments to grow. Stash invests as you spend.
Stash Review 2024: Fractional Share Investing

Early direct deposit (2 days early)

By enrolling in direct deposit, you'll have access to your paycheck up to two days early, allowing you to invest and save early with this feature.

Budgeting

Using the app's tools, you can create simple budgets to separate your money into various spaces and help you stay organized. You can set automatic savings, target dates and amounts for goals, analyze your spending by category, and track your progress.

Account advantages

Using the app to manage your account gives you mobile check deposits, enrollment in Apple or Google Pay, and the ability to lock your account from your phone should you notice suspicious activity.

55,000+ ATMs

You won't pay a fee to withdraw money from your account at Stash ATMs. Stash is a member of the Allpoint ATM network, with over 55,000 locations at retailers like Walmart, Walgreens, and RiteAid.
If you use an out-of-network ATM, you will have to pay a $2.50 fee.

Pros and cons

Pros
  • User-friendly investment apps. Anyone taking their first steps into investing will find Stash easy to use. You can trust the company to manage your funds and take a hands-off approach but the app works to teach you so you can improve and grow your funds into a diversified portfolio that meets your risk tolerance.
  • Stock-Back rewards. When you shop with qualifying retailers as a Stash member, your purchases earn Stock-Back rewards – fractional shares of company stock. So it works like a traditional cash back program, but instead of receiving cash, you earn fractional stock.
  • Fee-free banking. With the Stash checking account, you won't pay monthly fees, get free ATM usage, and connect directly to your brokerage account.
Cons
  • Flat-fee structure. While the monthly fee appears low, the flat-fee means you could be paying a higher annual fee than competitors who charge a percentage fee on your earnings. This is only for accounts with investments lower than $5,000; once you cross that threshold, your earnings will make the fee worthwhile.

Stash vs. competitors

App
Cost
Minimum investment
Investment options
Additional features
Stash
$3 - $9/month
$5
Stocks, ETFs, crypto
Debit accounts, IRAs, retirement, and custodial accounts
$3 - $9/month
$5
ETFs
Checking account, retirement savings
0.25%-1% fees
$10
ETFs and crypto
IRAs, checking accounts, high-yield cash account

Acorns

Acorns is an introductory product for new investors as well. Its tiered structure is similar: $3 per month for Personal, $5 per month for Personal Plus, and $9 for Premium. These provide an investment account with a checking account at the personal level and investment accounts for the family program.
You do not need a minimal amount to open your account but need at least $5 to begin investing in the pre-built portfolios offered, all of which are ETFs. Acorns provides a round-up feature, a checking account, and a retirement savings program called Later.

Betterment

Like Acorns and Stash, Betterment is a robo-advisor that does not require a minimum account balance, but instead of charging a monthly fee, it will charge 0.25% on its Digital tier and 1% on its Crypto Investing tier.
Betterment invests in the total stock market, value stocks, international markets, and emerging stocks. Additionally, it invests in high-quality, municipal, inflation-protected, high-yield, short-term, internationally-developed, and international emerging market bonds.

Who should or shouldn't use Stash?

The program is designed specifically for beginners who want to try investing but don't know where to start. Stash walks you through investments without requiring a lot of capital and lets you grow slowly but methodically
Because this is designed for beginners, experienced investors will find that fractional investments don't quite meet their needs. If you are familiar with investing, it's probably best to use a brokerage and purchase full shares.
However, as Stash continues to develop its platform, it may also cater to experienced investors in the future.

FAQs

Is my money insured?
Stash accounts are held by Apex Clearing, which is registered by FINRA. Investments are covered up to $500,000.
Is Stash only online?
This investing app is available for Apple iOS and Android but you can access your account from a desktop, as well.

Is Stash legit?

Stash works well for new investors looking to dip their toes into stocks and ETFs. Use the app to learn and adjust your goals and portfolios. Is it meant to be your end-all investment account? Not at all. It's there to teach you, and when you are ready to take bigger steps, you can move on to other brokerage platforms.

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