Stash: Investing made easy

Selecting investments — specifically, stocks and exchange-traded funds (ETFs) can be daunting if you’re new to the investment world. But what if you had an investment guru that can teach you how to invest for a mere $1 fee*?

Stash app is that investment guru.

Originally launched in 2005 by three former investment bankers, Stash is a fintech platform and one of the fastest-growing consumer investing and banking platforms in the U.S.; offering over 60 ETFs and over 150 individuals stocks.

Its full suite of financial products includes personal investment accounts, Traditional and Roth IRA’s, custodial investment accounts, and banking services, including a debit card with a Stock-Back™ rewards program.

Unlike Robo-advisors that dictate your investment choices, Stash lets you set up your investment portfolio while offering a retirement calculator and Stash Coach to help in banking, investing, and education, all into one seamless experience.

But is it worth all the hype? Let’s find out!

$5 to Start Investing. Is it True?

Yes, thanks to fractional shares, Stash is able to buy the ETFs and stocks and split them among its investors. This is also great for thematic investors who can diversify their investment portfolio, investing in various stocks complimenting what’s close to their hearts.

The app also offers an adjustable slider that indicates your monthly deposit and growth potential or anticipated investment return, and you can view your returns after one year, five years and 10 years.

How to Start Investing With Stash?

The signup process is pretty simple.

1. Fill in the Stash questionnaire that requires details such as your income, net worth, banking information, authentication processes, and risk tolerance.

2. Based on your answers, Stash creates an investor profile and suggests pre-built portfolios that best fit the risk profiles (conservative, moderate or aggressive).

3. You can then pick the desired ETFs from three categories:

I Believe: Stocks of socially responsible companies that care about causes you’re passionate about- clean energy, LGBT rights, etc.
I Want: Stocks that pay regular dividends and ones aligned to your investment goals- aggressive, moderate, or conservative mix.
I Like: Stocks in retail therapy, internet, tech, and social media.

Stash renames the ETFs to imply their holdings more clearly. For instance, the SPDR S&P BioTech ETF is called Modern Meds and the Vanguard Small-Cap ETF is called Small but Mighty.

4. Once you click on a stock, you are taken to a screen that shows you:

Investment synopsis
Risk level
The fund’s expense ratio, the most recent share price, its dividend yield, and a link to the fund’s website. The ETF descriptions also include a list of the investment’s holdings and the underlying security — the ETF that Stash has renamed.

5. Auto Stash suite of features. You can schedule and automate your investments with Set-Schedule or, use the feature to round-up your purchases to the nearest dollar and, once those round-ups hit $5, the app will send that money to your investment account.

6. Similarly, the Smart-Stash feature analyzes your bank account’s activity and, if it finds some extra money in there, the app will sweep it into your Stash Cash Balance.

7. Adding a social component to the services, Stash offers a running referral program5 where you can get a cash bonus in your account if your friend signs up. (Certain referral promotions may not be combined with this bonus offer).

8. In case of any queries regarding the investments, the app offers question mark symbols that launch quick definitions or explanations. Similarly, there’s plenty of educational content and a list of suggested additional investments curated according to the questionnaire info.

9. Stash also helps you manage your asset allocation- which investments should get the highest priority and which ones should be considered a compliment.

Subscription Plans

All plans include access to a Stash debit card, which comes with an FDIC-insured bank account. You can get paid up to 2 days early with a direct deposit. There’s, no overdraft, minimum balance, set-up, or hidden fees.

$1 per month*: Includes a brokerage account plus access to an online bank account and debit card, which includes a rewards program.
$3 a month*: Includes brokerage and bank accounts, plus a retirement account — either a Roth or traditional IRA.
$9 a month*: Includes all of the above, plus two custodial accounts for minors, a metal debit card (rather than plastic), a rewards program, and a monthly investment research report.

How Much Does Stash Charge?

You pay one flat monthly subscription fee* based on your plan ($1/month, $3/month, $9/month). There are no add-on trading commissions*.

MAD Verdict: Should You Download Stash?

If you’ve savings lying idle or want to take the first step into the investing realm, the app does its job perfectly. Also, the app offers access to fractional shares, which is great for dedicating a little amount to multiple company stocks.

The app’s UI is intuitive, it takes your financial personality into account and manages your investments accordingly. With features like Auto Stash and Smart Stash, it’s easy to manage your investment portfolio with little work and turn your spare change into opportunities of monetary return.

However, once you sign up, the app is pretty insistent on making a regular deposit amount, though you can immediately opt-out of that amount. The only catch is that the request occurs before you even know the potential investment options or what they cost. But overall, the app is a really good place to start for anyone interested in starting their investment journey.

Footnote:

This review is part of a paid partnership with Stash.

*Clients may incur ancillary fees charged by Stash and/or it’s custodian that are not included in the monthly subscription Fee.

1. Stash Stock-Back™ is not sponsored or endorsed by Green Dot Bank, Green Dot Corporation, Visa U.S.A., or any of their respective affiliates, and none of the foregoing has any responsibility to fulfill any stock rewards earned by this program.

2. The account opening of the debit account is subject to Green Dot Bank’s approval. Debit Account Services provided by Green Dot Bank and Stash Visa Debit card issued by Green Dot Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Visa is a registered trademark of Visa International Service Association. Investment products and services are not offered by Green Dot Bank and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.

3. Early access to your direct deposit depends on deposit verification and when Green Dot Bank gets a notice from your employer and may vary from pay period to pay period.

4. The transaction is declined and no fee is charged. Other fees apply to the debit account.

5. This is subject to Program Terms and Conditions

Investing involves risk. Stash Investments LLC is an SEC-registered investment adviser. This information is for educational purposes only, and should not be construed as investment, tax or Legal advice.