Acorns vs Stash: which is better for small investors?
Investing is essential to achieving your long term financial goals. Smart investing can seem complicated and risky, so it’s not uncommon for people to put their money in a bank account.
Acorns and Stash offer a low barrier to investment, with low account minimums and low fees. These platforms are a mix of robo-advisor, application and automated backup. If you don’t have the time or the expertise to manage your investments, these platforms could prove useful.
Let’s take a look at the features offered by both and which investment platform is the right option for you.
Acorns users link their bank accounts to daily purchases on a selected credit or debit card. Each purchase is rounded to the nearest dollar amount and the difference is invested. This is called micro-investment.
Only 55% of Americans own stocks, according to Gallup. So, if you are one of them, anything you can do to start investing is a step in the right direction. And Acorns is good at it.
Instead, you are able to automatically invest your money through savings. There is also a feature called Found Money, which allows you to claim discounts of up to 10% from select merchants, such as Lyft and AirBnB. It takes about two to four months for these discounts to reach your account.
Users choose their investments based on their preferences. When you open an account, you’ll be asked to choose your timeline, risk tolerance, and financial goals. You can choose from five different wallets.
The cost is $ 1 per month for the standard taxable investment account, $ 3 per month for Acorns Later, their IRA Accountand Acorns Spend, which is a bank account and debit card offering. For $ 5 per month, you have access to Acorns Early, a childcare account.
The two apps are extremely similar and their basic functionality is the same. Where Stash differs is better portfolio management and more options to invest in.
Stash offers the same automated backup feature as Acorns. All purchases made on a linked credit or debit card are rounded up to the next dollar and invested in your wallet.
What is different is the Stock-Back program. Make a purchase on a Stash Debit Card and you will be rewarded with fractions of shares in an ETF or a stock.
You can also analyze the expenses of your bank account to try to increase your savings thanks to the SmartStash system.
The platform also offers a selection of articles, blog posts and FAQs to improve your financial literacy.
The fees are $ 1 per month for a brokerage account, $ 3 per month for traditional and Roth IRA accounts, and $ 9 per month for custody accounts and the Double Return of the Stock-Back program.
Acorns vs Stash: which is the best platform for you?
At first glance, there is little difference between Acorns and Stash. They offer the same basic functionality.
When it comes to choice, Stash offers a more diverse range of stocks and ETFs in which to invest. However, Acorns may be a better choice for those who want to fully automate their portfolio as it has automatic rebalancing. Stash does not.
Both platforms are quality products, but the right option depends on whether you favor choice over cost.