Acorns vs. Stash – A Head to Head Between Investing Apps
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Fast Facts
Micro-Investing:
Both platforms support small investments.
Subscription Fees:
$3-$9 per month
Educational Tools:
Stash offers extensive learning resources.
Round-Up Feature:
Acorns rounds up purchases for investment.
Retirement Accounts:
Both offer IRA options.
Stock Choices:
Stash allows individual stock purchases.
Robo-investing and micro-investing apps had a moment during the COVID-19 lockdown days. With government stimulus money pouring in, many people stuck indoors began to sign up for these apps. Micro-investing is ideal for individuals short on cash, and they provide diversification and automatic investing services as well. But if you have long-term goals like building a nest egg, there are better options in the market.
Two such investing apps are Acorns and Stash.
Related: Best Acorns Alternatives
Jump To
About Acorns and Stash
Acorns
Based in Irvine, California, Acorns is a micro-investing and robo-investing app founded in 2012 by Walter Cruttenden III and his son Jeffrey Cruttenden to promote incremental and passive investing. The company has raised about $200 million in funding since its founding. It planned to go public in May 2021, but those plans were shelved in January 2022. As of April 2024, Acorns had $6.3 billion in assets under management.
Acorns provides various financial services such as fractional investment, robo-advisory, and robo-investment. With its educational and easy-to-learn and understand interface, Acorns has become a hit amongst the tech-savvy. The app syncs the user's credit or debit card with their Acorns account. Acorns rounds off the figure with every purchase and invests the rounded figure in exchange-traded funds (ETFs). For example, if you purchase a dress for $50.40, the linked card will transact $51 and invest the remaining $0.6.
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
Stash
Stash combines budgeting, saving, and investing features in one place. Founded in February 2015 by Brandon Krieg, Ed Robinson, and David Ronick, the New York-based personal finance app aims to help people build wealth and promote healthy financial habits. It boasts more than 2 million active subscribers. It is an SEC-registered investment advisor, and it offers FDIC-insured bank accounts.
Stash is an ideal platform for low-cost investors and those who aim to save and build wealth gradually and in small portions. It takes a beginner-friendly approach to investing, and you can put money to work in investment options such as individual stocks, ETFs, and cryptocurrency without worrying about commission or trading fees.
Key features of Acorns
Acorns Invest
While saving spare change doesn't sound like much on paper, you'd be surprised how much you can accumulate in a year if you keep at it. The feature works once you link your credit or debit card with the Acorns account. The Round-Up feature rounds off your purchase to the nearest dollar and invests the difference in a diversified ETF portfolio. In addition, you also get access to diversified investment portfolios, financial education content, and portfolio rebalancing. You can also set up recurring investments.
Acorns Early
This feature lets you open an investment account for your children. It combines investment, retirement, and checking accounts into one package. You can set up recurring investments of as little as $5, and you also get access to financial literacy content. Funds in this account can be used for anything that benefits the child, including education. This feature is available only to members of the Family tier.
Related: What is a Custodial Account
Acorns Found Money
This is a cash-back feature where you earn a small percentage of the amount you spend on purchases made through Acorns' network of more than 350 retailers, including Sephora, Apple, Nike, and Walmart. The cash-back amount is automatically deposited in your account and invested.
Acorns Checking
This feature gives you access to an online checking account and a network of fee-free ATMs. There are a few other things included in Acorns Spend:
- Acorns Later: This sets up an individual retirement account (IRA) where you can periodically invest and deposit a certain amount with retirement in mind. You can invest as little as $5 and set up recurring contributions.
- Smart Deposit: Automate the investing process! Once your paycheck hits your Acorns Checking account, you can have a portion invested in Acorns Invest, Acorns Later, or Acorns Early.
- Acorns Learn: This section is educational and informative, helping users learn and understand various investment terminology, concepts, and advice. It includes a detailed glossary and an FAQ section.
- Acorns Grow: This features interviews of various financial entrepreneurs, updated daily news, and other relevant information.
Acorns Earn
When you purchase through one of Acorns' partner brands, you can invest a certain amount or a percentage of whatever you spent with them directly into your Acorns Invest account. This feature may have certain eligibility requirements you may have to meet.
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
Key features of Stash
Stash Invest
Stash gives you access to a personal brokerage account that you can use to execute investments. You can invest in fractional shares for as little as a cent and choose which stock or fund you want to invest in. The company also issues a portfolio diversification score that analyzes how diversified your investments are. You can also set up recurring investments or opt for round-ups.
Stash also offers a robo-advisor that invests the money for you depending on your financial situation, goals, and risk tolerance in either stocks, bonds, or crypto. This also comes with portfolio rebalancing.
Unlimited advice
Every Stash plan has unlimited financial advice and ongoing education to help you make the right investment decisions. These tools explain complex topics in a manner that's easy to digest for investing newbies. A newsletter delivers news straight to your inbox each week.
Save for retirement
Stash Retire lets you save money for retirement via a traditional IRA or Roth IRA in an automated manner. In a traditional IRA, your money grows tax-free until it's time to withdraw. A Roth IRA is typically funded with after-tax money.
Custodial account
You can also kick-start your child's financial future now. Stash Kids Portfolio lets you buy stocks and ETFs on behalf of your children. Once they turn 18, the money is theirs to keep.
Related: Best Stocks for Kids
Bank with Stash
Stash's FDIC-insured digital bank account has no overdraft fees, minimum balance fees, monthly maintenance fees, or set-up fees. You also have access to more than 19,000 fee-free ATMs across the U.S., and if you get your paycheck in your Stash bank account, you can choose to access your money up to two days in advance. The Stock-Back Card gives you stock in the retailers in which you shop. Shopped at Amazon? You now have a portion of Amazon stock!
Summary of Acorns and Stash
Service | Cost | Best for | Investments |
Acorns | $3-$9 per month | New investors, parents looking to save for children | ETFs |
Stash | $3-$9 per month | Beginners, those looking to invest for the long-term | Stocks, REITs, ETFs, crypto |
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
Costs
Acorns
Acorns has three pricing tiers:
- Acorns Personal: This includes Acorns Invest, Later, and Banking and costs $3 monthly.
- Acorns Personal Plus: Costing $5 per month, this plan includes everything in Personal along with a few additional bells and whistles.
- Acorns Premium. For $9 per month, get everything in the Personal Plus plan for the entire family.
Stash
The investing platform has two price plans:
- Stash Growth: This comes with an investing account, a cash management account, the Stock-Back debit card, savings and retirement tools, the robo-advisory platform (Smart Portfolio), and a retirement account. It costs $3 monthly.
- Stash+: The highest tier, for $9, includes items from the previous plan, custodial accounts, and Stock-Back card bonuses.
Pros and cons
Acorns pros and cons
Pros
- Automated investing, savings and other services.
- Zero commissions.
- Access to fee-free ATMs.
Cons
- $5 account minimum to begin investing.
- Acorns charges a $50 per ETF transfer-out cost.
- Limited investment options.
Stash pros and cons
Pros
- Access to unlimited educational content.
- Ideal for beginners looking to build wealth over the long term.
- You can buy fractional shares.
Cons
- $5 account minimum needed to begin investing.
- Lack of automated ESG portfolio options.
- Stash offers limited account types.
Reasons To Use Stash For Investing
- Get $5 to Make Your First Investment
- Invest in Stocks and ETFs with $1 or Less
- Receive Your Paycheck up to 2 Days Faster
- No Overdraft Fees or Minimum Balances
Acorns vs. Stash FAQs
Is Stash cheaper than Acorns?
No, both their plans start at $3.
Does Stash charge a transfer-out fee?
Yes, Stash charges a $75 fee.
Do either of apps provide tax optimization strategy?
No, Acorns or Stash do not provide this service.
What are the account minimums for each of Acorns and Stash?
They both enforce a $5 account minimum if you'd like to start investing.
The bottom line
Both Acorns and Stash have a lot going for them. Acorns is best suited for hands-off investors and those who enjoy earning cash back. Stash targets people new to investing and lets you buy fractional shares. Generally speaking, both investment apps offer the same features, such as a mobile app for Android and Apple and retirement accounts. However, the two apps have different pricing plans. Ultimately, the choice depends on your investment goals, budget, and horizon.
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Writer
Jasir Jawaid is Joy Wallet's Assistant Editor. He has more than 13 years of experience as a journalist covering Wall Street, equities, financial policy and regulation, and cryptocurrency and blockchain.
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