Trustpilot Rating – 1.4/5
With over 6 million ‘Stashers’, this virtual platform intends to help you in investing, saving and managing money. With just 3 dollars a month subscription, Stash could assist you to invest in crypto, stocks, ETFs. This app suggests investment options after it knows your goals.
1% Stock Rewards
Early Direct Deposit
No Minimum Deposits
A re you looking for an all-in-one financial app to manage your investments and savings? If you’re looking for a straightforward way to manage your investments and savings, you’re in the right place. This article is a complete Stash review, an excellent app offering the best option for beginner and experienced investors. Before you sign up, it is crucial to read Stash reviews and understand what this money app does and how it can help you in your financial journey.
What And How Does Stash Work?
Established in 2015, Stash is a digital platform focusing on helping you invest, save and manage your money regardless of how little it is.
This is an excellent money-saving and investing app for someone lacking the discipline and desires to save money. It can automate your savings and help you invest in stocks, crypto, or exchange-traded funds (ETFs).
Stash specializes in banking and investment so that you can open an account and access budgeting and investment tools. This is the perfect app to join if you need retirement, brokerage, and bank accounts in one place.
However, there is a catch! You enjoy all the convenience at a monthly fee, depending on the subscription level. Let’s look at the Stash fees and the available subscription levels below.
Stash Growth is the lowest subscription level for $3 a month; It is excellent for managing personal finances and helps you access valuable tips on money matters.
Additionally, you can enjoy various investment options, including individual, retirement, and smart portfolios.
The banking options in this category include the Stock-Back Card and early payment options. Furthermore, Stash Growth offers up to $1k worth of life insurance by Avibra.
Stash+ is the top tier, providing more financial services and costs more than the Stash Growth subscription.
This level offers all the services in the lower tier plus access to more financial services, including market insights, advice for family finances, two custodial accounts, and one percent stock back. Stash+ gives you insurance access to up to a $10k life policy.
Is Stash Free?
Stash is a paid app that provides access to banking and investment services in one platform. So, what is the monthly fee for Stash? Stash offers two subscription tiers; Stash Growth and Stash+.
The Stash Growth costs $3 a month, equal to $36 annually. On the other hand, the Stash+ goes for $9 a month, equivalent to $108 per year. Each of these tiers offers various services to simplify your investment and saving journey.
Accounts Supported By Stash
Stash supports three accounts: individual brokerage, retirement, and custodial accounts.
(1) Individual Brokerage Accounts
An individual brokerage account is like a bank account but lets you buy and sell stocks, bonds, exchange-traded funds (ETF), and mutual funds. Broker-dealers, online trading platforms, and investment companies offer this account type.
The best things about individual brokerage accounts are that it provides more liquidity and is FDIC-insured(Federal Deposit Insurance Corporation.
Furthermore, you can operate it like a typical bank account; top up or withdraw money. Notably, you can’t use this account for daily transactions as it is meant to grow your portfolio. You have to sell the investments to have cash in your account.
This transaction process can take several business days, and you should consider tax implications. But don’t worry, the money in your brokerage account is yours, and you’ll get it at the end of the day—it’s just that it takes time.
Use your brokerage account to save for future big purchases, travels, retirement, business, or even your children’s college tuition.
Opening an individual retirement account with Stash is straightforward and can take only a few minutes. There’s no minimum limit on the amount you can deposit, thanks to fractional shares.
Have you got a dollar in your account? Awesome! You can invest in the stock market regardless of the share price. You can DIY it online or on the app or capitalize on investment tools to automate your investments.
(2) Roth And Traditional IRA
Stash also supports retirement accounts. If you’re ready to secure your future financially, Stash is more than prepared for you with Roth and Traditional IRAs. So what is the distinction between these two retirement accounts?
Roth IRA is a retirement plan you can fund with post-tax dollars, which means the money you send into this account is taxed. The good thing is that you’ll enjoy tax-free withdrawals once your savings mature, ideally after you turn 59½.
No tax applies to your interest earned and the principal amount, and you can contribute to this account until you turn 70½. However, withdrawing these funds before maturity is subject to tax and a penalty.
The Traditional IRA is the complete opposite of Roth. You save pre-tax dollars and later have to give Uncle Sam his share after maturity.
This can lower your annual tax obligation, but you’ll have to pay for any withdrawals you make after the age of 59½. Early withdrawals from your Traditional IRA account are subject to tax and a 10% penalty fee.
Which retirement account should you consider with Stash? The correct retirement account depends on your money goals, and whatever retirement plan you need, Stash has you covered.
Access your IRA account at any time and enjoy automatic savings. Are you an expert investor looking for a new platform or a beginner starting an investment journey? Stash offers the simplest ways to invest and grow your wealth for retirement. Kick-start your retirement investment with as little as $5.
(3) Custodial Accounts
Do you think about your kids’ future? Setting money aside for your children’s future use is equally important. And Stash gives the platform to save and invest money wisely for your babies.
With a custodial account, you can act on behalf of your child, investing in stocks, ETFs, etc., and hand it over to them once they’re 18. The money you put aside in a custodial account can go a long way in offsetting your kid’s tuition for college, starting a business, or enough money for them to begin their adult life.
Anyone can create a custodial account, including parents, grandparents, uncles, aunts, and friends. A custodial account can be an excellent gift to hand over to the kid in your life once they’re of age. What custodial account types does Stash offer?
There are two types; UGMA (Uniform Gift to Minors Act) and UTMA (Uniform Transfers to Minors Act). UGMA only supports cash, stocks, mutual funds, annuities, bonds, and insurance cover.
The UTMA account, on the other hand, supports virtually any asset, and stash only supports UGMA accounts. Setting up a custodial account is seamless on Stash; you’ll need the child’s full name, date of birth, and social security number.
Do You Pay Taxes On Stash?
Your Stash investments are taxable, and you’ll need to complete the paperwork. Ideally, you’ll have to pay taxes for dividends, interest earned, and withdrawals from retirement accounts that are more than $10. You’ll also have to remit taxes when you sell your investments or dividends on ETFs.
How Does Stash Work?
Stash lets you save, invest and trade in the stock market, ETFs, and bonds. This platform shines best because you can start investing with limited resources.
Visit the website or download the Play and App Store app to sign up. Fill in your details and complete the tolerance risk questionnaire to create the account.
Once your account is ready, Stash will recommend investments that fit your goals, and you can start funding those investments.
Stash stands out because of its excellent features, simplifying online banking and investments.
(i) Smart Portfolio
The smart portfolio is an excellent Stash feature to automate your investments. Whether you’re a brand new investor, a hands-off investor, or on a budget, the smart portfolio can help you grow your wealth so you focus on other things.
This tool can make auto-recurring investments, reinvest your dividends, and perform smart transactions, factoring in your risk tolerance. Once you sign up, turn this feature on and let it do all the leg work.
(ii) The Stock-Back Card
How about earning back stocks for every purchase? That’s what Stash’s stock-back card does! Stash offers a debit card that earns you 1% stock rewards when you shop at any of their partner stores.
(iii) Early Direct Deposit
The early direct deposit feature lets you access your money up to two days early. Automatically save a percentage of your paycheck!
(iv) Mobile Banking
Stash is like a bank on the go! You can access all banking features on the app with no hidden fees.
- Stash has no deposit minimums; you can invest with as little as a cent. This is a perfect option if you’re on a budget and determined to grow your wealth.
- You can DIY or automate your investments.
- Fractional shares are available.
- Get stock rewards.
- Stash offers helpful tips.
- Fees. Stash charges a monthly subscription fee for its services, which is expensive for someone on a tight budget.
Start Investing And Build Your Portfolio With Stash
Stash is an excellent option if you’re an inexperienced investor looking to automate your investments. Are you ready to start saving, investing, and building your portfolio? Go to Stash and sign up! Penny Calling Penny has got your back for excellent saving and investment tips. Join us and be the first to receive the best saving and investment insights.