In the world of micro-investing, two popular platforms often come up in discussions: Acorns vs Stash. Both of these apps have revolutionized the way beginners can start investing with minimal funds and user-friendly interfaces. As we step into 2024, it’s essential to understand the differences between these two services to determine which one is the best fit for your financial goals. In this comparison, we’ll delve into the key features, fees, and benefits of Acorns and Stash to help you make an informed decision.
Quick Comparison
Here’s a quick summary of our verdict on Acorns vs. Stash. Both Acorns and Stash are excellent micro-investing apps tailored for beginners, but they cater to different investment styles. Acorns is ideal for those who prefer a hands-off approach, with its automated round-up investing and diversified portfolios. On the other hand, Stash offers more control and customization, allowing users to pick individual stocks and ETFs based on their interests and goals. If you want simplicity and automation, Acorns is the way to go. If you prefer more involvement and choice in your investments, Stash is the better option.
Features
When comparing the features of Acorns and Stash, it becomes clear that both platforms have unique offerings tailored to different types of investors. Acorns focuses on simplicity and automation, making it easy for beginners to invest without much effort. It rounds up spare change from everyday purchases and invests it into a diversified portfolio of ETFs. Acorns also offers additional features like Acorns Later for retirement accounts and Acorns Spend, a checking account with investment integration.
On the other hand, Stash provides more control and customization for users who want to be more hands-on with their investments. It allows users to invest in individual stocks, ETFs, and fractional shares based on their interests and financial goals. Stash also offers retirement accounts (Roth and Traditional IRAs) and Stash Banking, a service that integrates banking with investing. Additionally, Stash provides educational resources through “Stash Learn” and rewards users with its “Stock-Back” program, where they earn fractional shares of stock for making purchases with the Stash debit card.
Both platforms offer valuable features, but the choice between them depends on whether you prefer a more automated and straightforward approach (Acorns) or a more customised and educational experience (Stash).
Personal Experience
Having used both Acorns and Stash, I found each platform to have its own strengths and appeal. With Acorns, I appreciated the simplicity and automation it provided. The round-up feature made it effortless to save and invest without having to think about it, and the diversified portfolios offered peace of mind knowing my investments were well-managed. The integration of Acorns Later and Acorns Spend made it easy to keep all my financial activities in one place. On the other hand, Stash gave me a sense of control and engagement with my investments. The ability to choose individual stocks and ETFs allowed me to tailor my portfolio to my interests and financial goals. I also benefited from the educational resources provided by Stash, which helped me improve my financial literacy. The “Stock-Back” program was a unique and rewarding way to earn investments through everyday spending. Overall, my experience with both platforms was positive, but my preference leaned towards Stash for its hands-on approach and educational value.
Pricing
When it comes to pricing, Acorns and Stash have different fee structures designed to accommodate various user needs. Acorns offers three tiers: Lite at $1 per month, which includes the basic investment account with round-up features; Personal at $3 per month, which adds Acorns Later (retirement accounts) and Acorns Spend (a checking account); and Family at $5 per month, which includes all Personal features plus investment accounts for kids. On the other hand, Stash also has three pricing plans: Beginner at $1 per month, which includes a personal investment account and access to banking services; Growth at $3 per month, which adds a retirement account (Roth or Traditional IRA); and Stash+ at $9 per month, which provides additional features such as two custodial accounts for children, a metal debit card, and higher rewards with the “Stock-Back” program. Both platforms offer affordable options, but the choice depends on the specific features and services you value most in your investing journey.
Pros & Cons
Acorns
Pros:
– Automated round-up investing makes saving effortless
– Diversified portfolios managed by professionals
– Simple and user-friendly interface
– Offers retirement accounts (Acorns Later) and a checking account (Acorns Spend)
– Educational content through the “Grow” magazine
Cons:
– Limited control over specific investments
– Monthly fees might add up for small account balances
– Less customization compared to other platforms
Stash
Pros:
– Allows investment in individual stocks, ETFs, and fractional shares
– Customizable portfolios based on user interests and goals
– Comprehensive educational resources through “Stash Learn”
– Rewards with “Stock-Back” program for everyday spending
– Offers retirement accounts (Roth and Traditional IRAs) and banking services
Cons:
– Monthly fees are higher for premium features
– Requires more active involvement in investment decisions
– The interface may be less intuitive for complete beginners compared to Acorns
Both Acorns and Stash have their strengths and drawbacks, catering to different types of investors based on their preferences for automation, control, and educational resources.
Alternatives
If neither Acorns nor Stash fully meets your investing needs, there are several alternative platforms worth considering. Betterment is a robo-advisor that offers automated investing with personalised financial advice and low fees, making it a great choice for those seeking a hands-off approach. Robinhood provides commission-free trading of stocks, ETFs, and cryptocurrencies, appealing to more experienced investors who want full control over their investment choices. M1 Finance combines the best of both worlds, offering automated portfolio management with the flexibility to choose your own investments, and it operates with no management fees. Wealthfront is another robo-advisor that offers comprehensive financial planning and investment management, along with additional features like a high-yield savings account and lines of credit. Each of these alternatives provides unique features and benefits, allowing you to find the best fit for your investing style and financial goals.
Other relevant categories
When comparing Acorns and Stash, it’s important to consider other relevant categories beyond basic features and pricing. User Experience : Acorns excels in simplicity and automation, making it ideal for users who prefer a hands-off approach, while Stash offers a more engaging experience with customizable investment options and educational resources. Customer Support : Both platforms provide customer support, but Stash tends to offer more comprehensive educational tools and personalised guidance through its “Stash Learn” platform. Security : Both Acorns and Stash prioritise user security with features such as encryption, two-factor authentication, and SIPC insurance, ensuring your investments are well-protected. Mobile App : Both apps are highly rated, with intuitive interfaces that make managing investments on-the-go convenient and straightforward. Community and Social Features : Acorns offers a more solitary investing experience, whereas Stash incorporates social elements like the ability to follow other investors and see popular investment choices, which can be motivating and educational. Evaluating these additional categories can help you determine which platform aligns best with your investing preferences and lifestyle.
Conclusion/Summary: Who is the winner?
In the Acorns vs. Stash debate, the winner ultimately depends on your personal investing style and preferences. Acorns stands out for its simplicity and automation, making it the best choice for those who prefer a hands-off approach to investing. With its round-up feature, diversified portfolios, and additional services like Acorns Later and Acorns Spend, it’s perfect for beginners looking to save and invest effortlessly. On the other hand, Stash shines for users who want more control and customization in their investments. It offers a broader range of investment options, including individual stocks and ETFs, along with valuable educational resources and the unique “Stock-Back” program. Stash is ideal for those who want to be more involved in their investment decisions and learn along the way. Both platforms have their strengths, but the best choice depends on whether you value automation and ease of use (Acorns) or customization and educational support (Stash).