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Stash Review – Does the $12 Monthly Fee Actually Pay for Itself?

Andrew SchrageAndrew Schrage
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Stash

  • Best for: Beginners who will contribute to an IRA or spend on a debit card and want investing, retirement, and banking in one app
  • What Sets It Apart: 3% IRA match; stock rewards on card spending; one flat fee for every account
  • Investments: Taxable, IRA, and custodial accounts; fractional shares
  • Features: Smart Portfolio robo-advisor; Stock-Back debit card; $10,000 life insurance for ages 18 to 54
  • Price: $12 a month or $108 a year; plus 0.25% a year on managed IRAs at any balance and on Smart Portfolios once they reach $1,000
  • Pros: Match can cover the fee; easy automatic investing; no overdraft or minimum-balance fees
  • Cons: Steep on small balances; card rewards capped at $10 a month; Fidelity offers the core investing for $0
Just the Tip:

Open Stash only if you’ll use its 3% IRA match or its Stock-Back card enough to cover the $108 annual fee, which takes about $300 a month into a self-directed IRA or $900 a month on the card. A managed IRA also charges 0.25% of its balance a year. Otherwise, Fidelity offers fractional shares and a no-fee IRA.

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Stash is a subscription app for beginning investors that puts a brokerage account, an IRA, custodial accounts, and a rewards debit card under one flat fee. It pays for itself only for members who put real money into its IRA or run their spending through its card.

Key Features

  • The Stash Plan at $12 a month, or $108 a year billed annually1
  • An extra 0.25% a year on managed IRAs at any balance, and on Smart Portfolios (its robo-advisor accounts) once they reach $1,0002
  • A 3% match on new IRA contributions, capped at 3% of the annual IRA limit ($225 at the standard limit)4
  • A Stock-Back debit card paying 1% in stock on the first $1,000 of monthly spending, up to 3% at bonus merchants, then 0.125% once rewards reach $10 for the month3
  • $10,000 of group life insurance for members ages 18 to 54

Pros

  • The IRA match alone can cover the annual fee for steady contributors4
  • Automatic investing, round-ups, and fractional shares make small deposits easy
  • Custodial accounts for kids at no extra cost6
  • Banking with no overdraft or minimum-balance fees3
  • A $25 bonus for new members who invest $55

Cons

  • For a $50-a-month investor, the fee equals 18% of first-year deposits on the annual plan, or 24% billed monthly (our math)
  • Boosted card rewards top out at $10 a month, or $120 a year, before dropping to 0.125%
  • The match stops when you cancel, and withdrawals within four years can forfeit it4
  • Robinhood Gold pays a 3% IRA match for $5 a month, but requires five years in the IRA, against Stash’s four
  • Fidelity offers fractional shares, a no-fee IRA, and a robo-advisor free under $25,000

On the annual plan, Stash pays for itself once you contribute about $300 a month to a self-directed IRA or spend about $900 a month on its card, by our math. A managed IRA needs more than $300 a month, since its 0.25% fee grows with the balance. Below those amounts, the fee outweighs the rewards, so open a free Fidelity account.

Learn more about Stash or see how it compares to the best micro-investing apps.

Nothing in this material should be construed as an offer, recommendation, or solicitation to buy or sell any security. All investments are subject to risk and may lose value. Subscription plans and pricing are subject to change.

Stash Financial, Inc. is a digital financial services company offering financial products for U.S. based consumers. Stash is not a bank or depository institution licensed in any jurisdiction. Advisory products and services are offered through Stash Investments LLC, an SEC registered investment adviser. Stash Capital LLC, an SEC registered broker-dealer and member FINRA/SIPC, serves as introducing broker for Stash Clients’ advisory accounts. Apex Clearing Corporation, a third-party SEC registered broker-dealer and member FINRA/SIPC, provides clearing and execution services and serves as qualified custodian for advisory assets of Stash Clients. Products offered by Stash Investments LLC and Stash Capital LLC are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value. For more information, see Stash’s disclosures.

1 Ancillary fees charged by Stash and/or its custodian are not included in the subscription fee. The subscription fee also does not include fees charged by each ETF’s investment adviser or other fees and expenses reflected in the price of each ETF’s shares.

2 Stash has full authority to manage a “Smart Portfolio,” a discretionary managed account. Diversification and asset allocation do not guarantee a profit, nor do they eliminate the risk of loss of principal. Stash does not guarantee any level of performance or that any client will avoid losses in their account. In addition to the monthly subscription fee, Stash charges an asset-based advisory fee of 0.25% per year on Taxable Managed Portfolio assets of $1,000 or more, and 0.25% per year on all Managed Retirement Portfolio assets. See the advisory agreement for details. Not all stocks pay out dividends.

3 Stash Banking services provided by Stride Bank, N.A., Member FDIC. The Stash Stock-Back® Debit Mastercard® is issued by Stride Bank pursuant to license from Mastercard International. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. Any earned stock rewards will be held in your Stash Invest account. Investment products and services provided by Stash Investments LLC, not Stride Bank, and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value. In order for a user to be eligible for a Stash banking account, they must also have opened a taxable brokerage account on Stash. All Stock-Back® rewards contribute to a single $10 per month cap. All rewards earned through use of the Stash Stock-Back® Debit Mastercard® will be fulfilled by Stash Investments LLC and are subject to Terms and Conditions. You will bear the standard fees and expenses reflected in the pricing of the investments that you earn, plus fees for various ancillary services charged by Stash. In order to earn stock in the program, the Stash Stock-Back® Debit Mastercard must be used to make a qualifying purchase. Stock rewards that are paid to participating customers via the Stash Stock Back program are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value. What doesn’t count: cash withdrawals, money orders, prepaid cards, and P2P payment. If you make a qualifying purchase at a merchant that is not publicly traded or otherwise available on Stash, you will receive a stock reward in an ETF or other investment of your choice from a list of companies available on Stash. Stock rewards are not available in tax-advantaged accounts, including retirement and custodial accounts.

4 The 3% retirement account match is given only on net contributions completed within a given month and is subject to IRA Match Rewards Terms and Conditions. Rewards are capped at 3% of your annual IRA contribution limit. Rollovers, ACATs, and transfers from external accounts are not eligible deposits. Rewards are subject to a four-year holding period and an Early Removal Fee may apply to withdrawals within that period. An active Stash subscription is required to continue receiving rewards. Stash does not monitor whether a customer is eligible for a particular type of IRA, or a tax deduction, or if a reduced contribution limit applies. You should consult with a tax advisor.

5 The $25 bonus offer is subject to $5 First Deposit Promotion Terms and Conditions. To receive the bonus you must open a Personal Portfolio, link a funding account, and complete a deposit of at least $5 into a Personal or Smart Portfolio. Bonus funds must remain in your Personal Portfolio for 90 days. Limit one per customer. Custodial accounts and IRAs are not eligible. Bonus funds may be taxable income to you. Offer amount is set by the offer you receive and is subject to change or cancellation at any time.

6 The money in a custodial account is the property of the minor.

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Editorial & Advertiser Disclosure: The editorial content on this page is not provided, commissioned, reviewed, approved, or otherwise endorsed by any advertiser. Opinions expressed here are ours alone, not those of any advertiser. The offers that appear on this site are from companies that compensate us. That compensation may influence which products we cover and where and how they appear on a page – including the order in which they appear – but it does not influence our evaluations, ratings, or opinions. We do not include every company or offer available in the marketplace.

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