Welcome to my comprehensive comparison of Stash and Acorns, two popular investment apps. In this article, I’ll dive deep into the features, fees, and performance of both platforms to help you determine which one is best suited for your financial goals. Whether you’re interested in portfolio management, micro-investing, or automatic investing, I’ve got you covered.
Key Takeaways:
- Stash and Acorns are popular investment apps that offer a range of features for users.
- Both apps have different investment plans, each with unique features and fees.
- When it comes to investment choices, Stash offers a wider selection of options compared to Acorns.
- Both apps provide cash management accounts with various features to help users manage their finances.
- Stash and Acorns have additional features such as planning tools, round-ups, and educational resources.
Introduction to Stash and Acorns
Stash and Acorns are two leading investment apps that provide users with the convenience of saving and investing their money. Both platforms offer a range of features designed to help individuals grow their wealth and achieve their financial goals. While they share common goals, there are some key differences between Stash and Acorns. In this section, I will give you an overview of these two investment apps and the unique features they offer.
Stash
Stash is an investment app that aims to make investing accessible and engaging for everyone. The platform offers a user-friendly interface and a variety of features that cater to both beginner and experienced investors. With Stash, you have the opportunity to invest in fractional shares of stocks and exchange-traded funds (ETFs) that align with your interests and values. They have curated lists of investments based on themes such as technology, sustainability, and social equality, making it easy to build a portfolio that reflects your personal priorities.
Stash also offers educational resources to help users learn about investing. They provide articles, videos, and guides that cover a wide range of topics, making it a great option for individuals who want to expand their knowledge and make informed investment decisions.
“Stash provides a user-friendly interface and curated investment options based on themes, making it easy for users to build a personalized portfolio.”
Acorns
Acorns is an investment app that focuses on helping users invest their spare change through its round-up feature. When you make a purchase using a linked debit or credit card, Acorns automatically rounds up the transaction to the nearest whole dollar and invests the change into a diversified portfolio. This micro-investing approach makes it effortless to start investing, especially for individuals who want to save money without even thinking about it.
Acorns offers a selection of pre-set investment portfolios based on your risk tolerance, ranging from conservative to aggressive. The app also provides a cash management account called Acorns Spend, which offers features such as direct deposit, mobile check deposit, and ATM access.
“Acorns makes investing easy by allowing users to invest their spare change and offers a cash management account for easy access to funds.”
Both Stash and Acorns offer unique features that cater to different investing preferences. Whether you prefer a hands-on approach with a wide range of investment options or a more automated and simplified investment experience, both platforms have something to offer. In the following sections, we will dive deeper into the specific features, investment plans, account types, and costs associated with Stash and Acorns to help you make an informed decision about which app is the best fit for you.
Investment Plans: Acorns vs. Stash
When it comes to investment plans, both Acorns and Stash offer a range of options tailored to meet different investment goals and preferences. Let’s take a closer look at the investment plans offered by these two popular investment apps.
Acorns
Acorns provides users with two main investment plan options: Personal and Personal Plus. The Personal plan is tailored for individuals who want to start investing and grow their wealth over time. With the Personal plan, users can enjoy benefits such as automatic round-ups, access to Acorns’ Found Money partners, and the potential to earn bonus investments with everyday purchases. The Personal Plus plan, on the other hand, is designed for individuals who want additional features and benefits, including an Acorns Later retirement account and Acorns Spend checking account.
Stash
Stash offers two primary investment plans: Stash Growth and Stash+. The Stash Growth plan is ideal for individuals who are looking to start investing and build a diversified portfolio. It provides users with access to a wide range of investment options, including ETFs and individual stocks. Additionally, Stash Growth offers personalized guidance and educational content to help users make informed investment decisions. For users looking for additional features, the Stash+ plan is available. This plan includes all the benefits of Stash Growth, plus added perks such as a monthly market insights report and a metal debit card with Stock-Back rewards.
Comparison of Investment Plans and Fees
| Investment App | Investment Plans | Key Features | Fees |
|---|---|---|---|
| Acorns | Personal, Personal Plus | Automatic round-ups, Found Money partners, Acorns Later and Acorns Spend (Personal Plus) | Personal: $1/month Personal Plus: $3/month |
| Stash | Stash Growth, Stash+ | Diverse investment options, personalized guidance, educational content, monthly market insights report, Stock-Back rewards (Stash+) | Stash Growth: $1/month Stash+: $9/month |
As you can see in the table above, Acorns and Stash offer different investment plans with their own unique features and associated fees. It’s important to carefully consider your investment goals, preferred features, and budget when choosing between these options. Additionally, keep in mind that fees may vary depending on your account balance and selected plan. Take the time to review the details of each investment plan to determine which one aligns best with your financial objectives.
Investment Choices and Costs: Acorns vs. Stash
When it comes to choosing investments, the options offered by Stash and Acorns differ in terms of variety and flexibility. Stash provides a wider selection of Exchange-Traded Funds (ETFs) and individual stocks compared to Acorns. Acorns, on the other hand, offers pre-selected portfolios that consist of ETFs to simplify the investment process.
Stash allows users to choose their own investments, which gives them greater control over their portfolio. This feature is especially beneficial for those who have specific investment preferences or want to focus on certain industries or sectors. By allowing users to select their own investments, Stash offers a more tailored and customizable investment experience.
Stash’s wide range of ETFs and individual stocks enables users to diversify their portfolio and invest in specific companies or sectors that align with their investment goals and interests.
On the other hand, Acorns takes a more hands-off approach to investing by offering pre-selected portfolios. These portfolios are designed based on users’ risk preferences and investment goals. Acorns’ automated investment approach may appeal to those who prefer a passive investment strategy or who are new to investing and want a simplified experience.
Expense ratios refer to the annual fees charged by ETFs and mutual funds, expressed as a percentage of the total investment. They can have a significant impact on investment returns over time.
When it comes to understanding the costs associated with their investments, Stash provides more information about the expense ratios of its funds. This transparency allows users to make informed decisions and evaluate the potential costs of their investment choices. Acorns also discloses the expense ratios of its ETFs, but the information may not be as readily available or detailed compared to Stash.
In summary, Stash offers a broader range of investment choices, including a variety of ETFs and individual stocks, allowing users to tailor their portfolios to their preferences. Acorns, on the other hand, simplifies the investment process by offering pre-selected portfolios consisting of ETFs. Stash also provides more information about the expense ratios of its funds, helping users understand the potential costs of their investments.
| Comparison | Stash | Acorns |
|---|---|---|
| Investment Choices | Wide selection of ETFs and individual stocks | Pre-selected portfolios consisting of ETFs |
| Flexibility | Users can choose their own investments | Investments are pre-selected |
| Expense Ratio Transparency | Provides detailed information about expense ratios | Discloses expense ratios, but may be less detailed |
Cash Management Accounts: Acorns vs. Stash
Both Acorns and Stash offer cash management accounts that provide convenient features to help you manage your money. These accounts offer benefits such as direct deposit, mobile check deposit, and ATM access. In this section, I will compare the cash management accounts of Acorns and Stash and highlight the features they offer.
Acorns Cash Management Account
Features:
- Direct deposit: Easily set up direct deposits for your paycheck or other income sources.
- Mobile check deposit: Snap a photo of your check to deposit it directly into your Acorns account.
- ATM access: Withdraw cash for free at over 55,000 Allpoint ATMs nationwide.
- Found Money: Earn bonus cash when you shop with Acorns’ partner brands.
With the Acorns cash management account, you can enjoy the convenience of managing your day-to-day finances while seamlessly integrating it with your investment portfolio.
Stash Cash Management Account
Features:
- Direct deposit: Set up direct deposits for your paychecks and other income sources.
- Mobile check deposit: Deposit checks by simply snapping a photo with the Stash app.
- ATM access: Access cash at thousands of no-fee ATMs.
- Stock-Back® Card: Earn fractional shares of stock when you make purchases with the Stock-Back® Card.
The Stash cash management account provides a seamless integration of investing and everyday spending, allowing you to earn stock rewards with your purchases.
Both Acorns and Stash offer cash management accounts that provide convenient features for managing your money. However, there are some differences in the benefits they offer. It’s important to consider these features and choose the one that aligns with your financial goals and preferences.
Other Features: Acorns vs. Stash
Aside from their investment features, both Acorns and Stash offer additional tools and benefits to assist users in managing their finances. Acorns provides basic planning tools and round-up features, while Stash includes financial education resources and a unique Stock-BackTM debit card.
Planning Tools
Acorns offers users basic planning tools to help them track their spending, budget effectively, and set financial goals. With these tools, users can gain insights into their financial habits and make informed decisions about their saving and investing strategies. Acorns’ planning tools simplify the process of creating and maintaining a financial plan.
On the other hand, Stash focuses on educating its users about various financial topics. The platform provides educational articles and guides that cover essential topics such as investing, budgeting, and retirement planning. Stash’s educational resources empower users to make well-informed financial decisions and improve their overall financial literacy.
Round-Ups Feature
Both Acorns and Stash offer a round-up feature that automatically rounds up users’ everyday purchases to the nearest dollar and invests the spare change. This feature allows users to seamlessly save and invest without even realizing it. By utilizing round-ups, users can effortlessly grow their investment portfolio over time.
The round-up feature in Acorns is known as “Round-Ups,” and it invests the spare change in pre-selected portfolios based on the user’s chosen investment strategy. Stash, on the other hand, calls its round-up feature “Stock-BackTM,” which invests the spare change in fractional shares of stock from companies corresponding to the user’s spending categories.
| Other Features | Acorns | Stash |
|---|---|---|
| Planning Tools | ✔️ | ❌ |
| Financial Education Resources | ❌ | ✔️ |
| Round-Ups Feature | ✔️ | ✔️ |
Both Acorns and Stash provide unique additional features to enhance users’ financial experiences. While Acorns focuses on planning tools and round-ups, Stash prioritizes financial education and cash back through the Stock-BackTM debit card. Consider your personal financial goals and preferences when deciding which app offers the most valuable features for your needs.
Account Types: Acorns vs. Stash
When it comes to choosing an investment app like Acorns or Stash, it’s important to consider the different account types they offer. Both apps provide various account options to meet different investment needs. In this section, we will compare the account types available on Acorns and Stash to help you make an informed decision.
Individual Taxable Investing Account
An individual taxable investing account is a standard investment account that allows you to invest your money in a wide range of assets such as stocks, bonds, and ETFs. Both Acorns and Stash offer individual taxable investing accounts, giving you the flexibility to build your portfolio and grow your wealth.
Retirement Accounts (IRAs)
Planning for your retirement is essential, and both Acorns and Stash offer retirement accounts to help you save for the future. Acorns provides a Traditional IRA, Roth IRA, and SEP IRA, while Stash offers a Roth IRA and Traditional IRA.
Custodial Accounts
If you’re looking to invest money on behalf of a minor, custodial accounts can be an excellent option. Acorns offers UTMA/UGMA accounts, which allow parents or guardians to invest on behalf of their children. Stash, on the other hand, does not currently offer custodial accounts.
By offering a range of account types, both Acorns and Stash cater to different investment goals and preferences. Whether you’re looking for a standard taxable investing account or planning for retirement, both apps have options to suit your needs.
Now that we’ve explored the account types offered by Acorns and Stash, let’s move on to the next section to compare the transfer fees associated with each app.
| Account Types | Acorns | Stash |
|---|---|---|
| Individual Taxable Investing Account | ✓ | ✓ |
| Retirement Accounts (IRAs) | Traditional IRA, Roth IRA, SEP IRA | Roth IRA, Traditional IRA |
| Custodial Accounts | UTMA/UGMA | Not available |
Transfer Fees: Acorns vs. Stash
When considering investment apps like Acorns and Stash, it’s important to take transfer fees into account. These fees are associated with moving your investments from one broker to another. Let’s compare the transfer fees of Acorns and Stash to help you make an informed decision.
Acorns Transfer Fees
Acorns charges a $50 fee per Exchange-Traded Fund (ETF) to transfer to another broker. This means that if you have multiple ETFs that you want to transfer, you would be charged $50 for each one. This can add up if you have a diversified portfolio with multiple ETFs.
Stash Transfer Fees
On the other hand, Stash charges a $75 fee for a full transfer to another broker. This means that regardless of the number of ETFs or other investments you have, you will only pay the $75 fee once for the entire transfer.
When comparing the transfer fees of Acorns and Stash, it’s clear that Stash has a higher flat fee for transferring your investments to another broker. However, it’s important to consider the size of your portfolio and the number of investments you have. If you have a large portfolio with multiple ETFs, Acorns’ $50 fee per ETF may end up being more expensive than Stash’s flat $75 fee.
Ultimately, the decision between Acorns and Stash should not solely be based on transfer fees. It’s essential to consider other factors such as the app’s features, investment choices, and fees associated with managing your portfolio. Let’s continue to explore these aspects in the following sections.
Stash vs. Acorns: Bottom Line
In conclusion, both Stash and Acorns are popular investment apps that offer a range of features to help users save and invest their money. The best app for you will depend on your specific needs and preferences. Stash may be a better fit if you want more control over your investments and the ability to choose your own stocks and ETFs. On the other hand, Acorns may be a better fit if you prefer a more hands-off approach to investing and want a fully automated portfolio. Ultimately, it’s important to carefully consider the features, fees, and investment options of both apps before making a decision.
| Stash | Acorns | |
|---|---|---|
| Control over Investments | ✔ | ✖ |
| Ability to Choose Stocks and ETFs | ✔ | ✖ |
| Hands-off Approach to Investing | ✖ | ✔ |
| Fully Automated Portfolio | ✖ | ✔ |
Pros and Cons of Stash
When it comes to choosing an investment app, Stash offers several pros that may make it an attractive option for users. Let’s take a closer look at some of the advantages of using Stash:
Pros of Stash
- Variety of investment options: Stash provides a wide range of investment options, including individual stocks, ETFs, and themed investment portfolios. This allows users to tailor their investments to align with their preferences and financial goals.
- Automated investing: Stash offers automated investing features, such as recurring investments and round-ups. These features make it easy for users to consistently invest and grow their portfolio, even with small amounts of money.
- User-friendly interface: Stash has a user-friendly interface that simplifies the investment process for beginners. The app provides educational resources and guidance to help users make informed investment decisions.
While Stash has several advantages, it also has some downsides that users should consider:
Cons of Stash
- Limited portfolio customization: Unlike some other investment apps, Stash does not offer full customization of investment portfolios. Users are limited to the available investment options and predefined portfolios offered by Stash.
- High fees for small account balances: Stash charges a monthly fee for account balances below $5,000. While this fee may not be significant for larger accounts, it can have a larger impact on smaller balances.
Overall, Stash offers a variety of investment options, automated investing, and a user-friendly interface. However, it also has limitations in terms of portfolio customization and fees for small account balances. It’s important to carefully consider these pros and cons when deciding if Stash is the right investment app for you.
Pros and Cons of Acorns
When it comes to using Acorns as an investment app, there are several pros and cons to consider. Let’s take a closer look:
Pros of Acorns:
- Automatic Investing: One of the notable advantages of Acorns is its automatic investing feature. The app allows you to link your bank account and credit or debit card, enabling it to automatically invest your spare change from everyday purchases into your investment portfolio. This makes it easy to consistently invest without even thinking about it.
- Round-Up Features: Acorns also offers round-up features, which round up your purchases to the nearest dollar and invest the difference. For example, if you buy a coffee for $2.75, Acorns will round up your purchase to $3.00 and invest the additional $0.25. This feature helps you save and invest effortlessly while building your portfolio gradually.
- Cash Management Account: In addition to its investment features, Acorns provides a cash management account known as Acorns Spend. This account offers a range of features such as direct deposit, mobile check deposit, and ATM access. It allows you to seamlessly manage your day-to-day finances alongside your investment portfolio.
Cons of Acorns:
- Limited Investment Options: Acorns primarily focuses on offering pre-selected portfolios known as “Acorns Portfolios.” While these portfolios are diversified and designed to match your risk tolerance, they offer limited customization compared to other investment apps. If you prefer more control over your investment choices, you may find the options provided by Acorns to be restrictive.
- High Fees for Small Account Balances: Acorns charges a monthly fee based on the tiered pricing structure. While the fee is relatively low, it can become significant for small account balances. For example, if you have a balance below $5,000, the fees may have a greater impact on your overall returns. Therefore, if you have a small account balance, it’s important to carefully consider the fees associated with using Acorns.
While Acorns offers innovative features like automatic investing and round-ups, it’s important to weigh the pros and cons before deciding if it’s the right investment app for you.
Conclusion
After comparing the features, fees, and investment options of Stash and Acorns, it’s clear that both apps have their merits. Each app offers unique benefits and caters to different types of investors. The best choice for you depends on your individual preferences and financial goals.
If you prefer a hands-on approach and want more control over your investments, Stash may be the better option. Stash allows you to choose your own stocks and ETFs, giving you more flexibility and customization. Additionally, Stash offers a user-friendly interface and a variety of investment options to help you build your portfolio.
On the other hand, if you prefer a more automated and effortless investing experience, Acorns may be the ideal choice. With Acorns, you can enjoy the convenience of automatic investing and round-up features, which help you save and invest your spare change. Acorns also offers a cash management account for easy access to your funds.
Regardless of which app you choose, both Stash and Acorns provide a convenient and accessible way to start your investment journey. By carefully considering your personal preferences and financial goals, you can select the investment app that aligns with your needs. So, whether you decide to go with Stash or Acorns, take the first step towards building wealth and achieving your financial objectives.
FAQ
What are Stash and Acorns?
Stash and Acorns are finance apps that help users save and invest their money.
What features do Stash and Acorns offer?
Stash and Acorns offer various features such as investment plans, investment choices, cash management accounts, and other financial tools.
What investment plans do Acorns and Stash offer?
Acorns offers Personal and Personal Plus plans, while Stash offers Stash Growth and Stash+ plans.
What are the costs associated with the investment plans of Acorns and Stash?
The costs associated with the investment plans of Acorns and Stash vary depending on the plan chosen. It is advisable to check the respective websites for the latest pricing information.
What investment choices do Acorns and Stash offer?
Stash offers a wider selection of ETFs and individual stocks compared to Acorns. Acorns offers pre-selected portfolios that contain ETFs.
How do the costs compare for Acorns and Stash?
The costs for Acorns and Stash vary depending on the investment choices and plans selected. It is important to review the fee structure of each app for accurate cost information.
What cash management accounts do Acorns and Stash offer?
Acorns and Stash offer cash management accounts that provide features such as direct deposit, mobile check deposit, and ATM access.
What other features do Acorns and Stash offer?
Acorns provides basic planning tools and round-up features, while Stash offers financial education and a Stock-Back debit card.
What types of accounts do Acorns and Stash offer?
Acorns and Stash offer individual taxable investing accounts, retirement accounts (IRAs), and custodial accounts.
What are the transfer fees for Acorns and Stash?
Acorns charges a fee per ETF to transfer to another broker, while Stash charges a fee for a full transfer to another broker.
Which app is better, Stash or Acorns?
The best app for you will depend on your specific needs and preferences. Stash may be a better fit if you want more control over your investments, while Acorns may be a better fit if you prefer a more hands-off approach to investing.
What are the pros and cons of using Stash?
Some pros of using Stash include a variety of investment options, automated investing, and a user-friendly interface. However, some cons to consider are limited portfolio customization and high fees for small account balances.
What are the pros and cons of using Acorns?
Some pros of using Acorns include automatic investing, round-up features, and a cash management account. However, some cons to consider are limited investment options and high fees for small account balances.
Our Friends
- https://www.stash.com/learn/stash-vs-acorns/
- https://www.nerdwallet.com/article/investing/acorns-vs-stash
- https://www.bankrate.com/investing/acorns-vs-stash/
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