Stash vs Acorns: Where Should You Invest Your Money? | One Smart Dollar (2024)

Thanks to technology, we’ve seen a lot of great advancements in financial tools. There are now more tools than ever that make it easier to invest with smaller amounts of money.

Two of my favorite easy, low-maintenance, high-quality investment apps are Stash and Acorns. They work a little differently, but I use both consistently to help me reach my savings goals.

If you’ve heard about Stash or Acorns but you weren’t sure if they were for you, then this article is sure to help you make that call! Keep reading as we discuss Stash vs Acorn.

What is Stash Invest?

Stash is an investment app that makes investing fast, easy, and best of all, cheap. They have over 30 ETFs available with low expense ratios, so more of the money you invest actually gets invested. Plus, they have fun names like “American Innovators” and “Live Long & Prosper.”

You can invest in any variety of funds, and set up automatic purchases to take the hassle of investing out of your life completely. Set it, forget it, and watch your wealth grow.

How much does it cost to use Stash?

Stash charges a simple $1/month for any accounts under $5,000. Accounts with a balance of over $5,000 are charged a 0.25% fee. It’s free to open a Stash account, and you can start investing with as little as $5.

Is Stash a retirement account?

It can be! Stash recently added retirement accounts with the same great Stash flair and ease. For as little as $15, you can open a retirement account in the form of a Roth or traditional IRA.

The management fee is only $2/month if you have a balance of less than $5,000. For higher balances, Stash charges a flat fee of 0.25%. That’s way less than most retirement account managers!

Who Should Use Stash?

Stash is best for people who want to learn more about investing without sinking their life savings into one particular stock or fund. You’ll get a great amount of variety without having to make any long-term commitments or deal with the complexity of robo-advisors.

There are some quizzes you can take to find out which investments align the closest to your needs, so you can get a little extra guidance if you need it. It’s free for the first month, so there’s no harm in giving it a try!

How Does Acorns Work?

Acorns is an investment app that rounds up your purchases to the nearest dollar and then moves the difference straight into your investment account. You can also make investments directly if you want to invest more than just your spare change.

Notably, Acorns has partnerships with some companies to give you rebates when you make purchases, like Blue Apron, Jet, and Airbnb. They have ETFs from six different asset classes, and all of them have low expense ratios to keep your costs to invest down.

How much does it cost to use Acorns?

Acorns costs the same amount as Stash, which is why I can afford to use both. Acorns charges a simple $1/month for any accounts under $5,000. Accounts with a balance of over $5,000 are charged a 0.25% fee. It’s free to open an account, and you can start investing with as little as $5.

Also Read: Battle of the Robo-Advisors: Acorns vs Betterment

Is Acorns a retirement account?

Nope. Acorns only offers individual non-retirement accounts. That means you can’t use Acorns to open an IRA.

Who Should Use Acorns?

If you’re a college student, you should sign up for Acorns immediately because college students get up to four years FREE – which is like $48 free dollars, if you add it up. Acorns is also a fantastic tool for anyone who is more of a spender than a saver. It makes saving effortless and automatic.

What do they have in common?

Both Stash and Acorns offer ETFs with low expense ratios, which helps you get more bang for your buck. With both apps, you’re on your own – these aren’t robo-advisors like Wealthfront or Betterment.

If you want to ask a human about your investment choices, neither of these apps offer that. But that’s OK! The way I see it, everyone can afford to make a $5 mistake every now and then. And both of these apps make it super easy to sell if you change your mind or want to cash out.

Why do you use both?

Fair question. If Acorns and Stash do pretty much the same thing, then what’s the point of using both?

Answer: I’m a natural spender. Using Acorns allows me to turn my spending into a productive habit. I wish there was an app that did that for calories!

I use Stash too because having investments in two places makes it easier for me to stay on track. If you’re just getting started with investing, I’d recommend starting with one app and only adding another if you’re really interested, because otherwise, you’ll end up paying more in fees.

Sign Up For Stash Invest

Sign Up For Acorns