Acorns vs. Stash: Which is Smarter for Beginning Investors?

If you’re hoping to grow your wealth, one of the best ways to accomplish that goal is by investing. Getting started can feel like a daunting task, however — especially when you start investing during a recession. The good news is that the process is probably simpler than you think.

Both Acorns and Stash¹ <p>Paid non-client endorsement. See Apple App Store and Google Play reviews. <a href="https://www.stash.com/start-investing/financebuzz10">View important disclosures.</a></p> <p>Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. Investing involves risk and investments may lose value. 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.</p> <p>Advisory products and services are offered through Stash Investments LLC, an SEC registered investment adviser.</p> ² <p> <strong>To note</strong>, SIPC coverage does not insure against the potential loss of market value. For details please see <a href="https://www.sipc.org/" target="_blank" rel="noopener noreferrer">www.sipc.org</a>. </p> are investment apps that let you invest small amounts of money, and you don’t need to be a financial expert to get started. In this Acorns vs. Stash comparison, we’ll look at how these apps work, how they’re different, and the benefits and drawbacks of each.

Acorns vs. Stash

Acorns and Stash are both micro-investing apps that allow you to create investment portfolios. Both have some similar features, including low minimums, the ability to make small automatic transfers, and the choice to connect your payment methods and round up your purchases to invest the pocket change.

Here’s a quick look at how they compare:

Minimum investment	$5	$1
Management fees	$3 - $12 per month	$3 - $9 per month
Asset classes	Stocks Bonds Real estate	Stocks Bonds Commodities
Account types available	Individual IRA (Traditional, Roth, SEP) Personal checking account Custodial	Individual IRA (Traditional, Roth) Custodial Personal banking account
Features	Round-ups Acorns Earn Debit card Knowledge base	Stock Round-ups Individual stocks Debit card3 <p>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 and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.</p> Knowledge base
Best for...	Getting started and increasing your portfolio automatically	New investors who want the option to invest in individual stocks
	Visit Acorns Paid Non-Client Promotion FinanceBuzz doesn’t invest its money with this provider, but they are our referral partner. We get paid by them only if you click to them from our website and take a qualifying action (for example, opening an account.)	Visit Stash Paid Non-Client Promotion FinanceBuzz doesn’t invest its money with this provider, but they are our referral partner. We get paid by them only if you click to them from our website and take a qualifying action (for example, opening an account.)

How does Acorns work?

The Acorns app that allows you to begin investing money in a preset portfolio of exchange-traded funds (ETFs). Acorns helps you construct a portfolio based on your risk tolerance and timeline. Acorns ETFs include a mix of small- and large-cap stocks, government and other types of bonds, and real estate. You have the option to invest in fractional shares of ETFs with Acorns.

In addition to being able to set up regular contributions with Acorns, it’s also possible for you to use the round-ups feature to invest your pocket change. With this feature, you can connect a bank account or credit card and Acorns rounds up your purchases to the nearest dollar, then the difference is transferred to your Acorns account. You can also turbo-charge your round-ups. For example, you can set your round-ups for 3X. If you spend $1.80, the base amount for the round-up would normally be 20 cents. However, with the 3X turbo-charge, the round-up is 60 cents.

Acorns also offers Acorns Early, which allows you to open custodial accounts for your children, plus Acorns Earn. With Acorns Earn (formerly known as Found Money), you can shop with partners and receive cash back in the form of money deposited into your Acorns account and invested for your future benefit. You can also search for jobs. Acorns includes a browser extension that notifies you if you’re on a site that works with Acorns Earn.

You’ll be hard-pressed to connect with a human when you use Acorns, though. There’s an extensive FAQ section and a large knowledge base of articles, but if you have more specific issues, you need to chat support.

Advantages of Acorns

• Small minimums: You can invest with as little as $5.
• Custodial accounts: You can choose to open custodial accounts for your children with Acorns Early.
• Round-ups: Automatically invest your spare change with Acorns’ round-ups feature.
• Acorns Earn: Acorns Earn gives you cash back when you shop with partners.
• Retirement options: Invest in a traditional or Roth IRA, or SEP IRA, if you’re a small business owner.

Disadvantages of Acorns

• Limited investment choices: With Acorns, you can invest in ETFs. If you want more investment choices, you may want to look elsewhere.
• Relatively high fee for small accounts: If you invest only a small amount with Acorns, the fees can add up quickly.
• No human advisors: Acorns does not offer the option to talk to a human advisor to get investment advice. If this is important to you, it’s best to look elsewhere.

How does Stash work?

Stash offers a robust banking and investing platform that allows you to start small and grow your wealth. While most of Stash’s offerings are centered on ETFs, the app also offers a limited number of individual stocks. With Stash, you can choose the investments you want based on different themes. Themes include clean energy, defense, and real estate, among others. You also have the option to invest in fractional shares of stock or ETFs.

Investors will also have the option to invest in Stash's Smart Portfolios. These carefully designed portfolios enable you to be diversified and regularly invest in your portfolio without having to make all your own investment decisions. Stash will also rebalance your portfolio for you as well as reinvest your dividends.⁴ <p class="">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.<br></p>

Stash allows you to set up automatic contributions to your investment account, and you can also set up Stock Round-ups⁵ <p class="">This Program is subject to <a href="https://lp.stash.com/stride-stash-stock-back-card-round-up-program/" target="_blank">terms and conditions</a>. In order to participate, a user must comply with all eligibility requirements and make a qualifying purchase with their Stock-Back® Card. All funds used for this Program will be taken from your Stash Banking account.<br></p> . If you choose to use this feature, Stash will round up your Stock-Back® Card purchases to the nearest dollar and invest that money for you. These round-ups allow you to automatically invest more in your portfolio and grow your wealth over time.

With a Stash+ account, you can open custodial investment accounts for up to two children and help them save. Stash also has a banking product that can be accessed with a debit card.

You won’t get access to a human advisor with Stash. The website offers a lot of educational articles as well as a detailed FAQ section that can answer many questions. If you need more specific help, you can submit a question and Stash will get back to you. Stash offers a mobile app that's available for both iOS and Android, but it doesn't offer chat support in the app.

Advantages of Stash

• Small minimums: Start investing with as little as $1.
• Custodial accounts: You can open custodial accounts for up to two children with Stash+.
• Different themes: Stash offers thematic investing that reflects values.
• Individual stocks: With Stash, you can choose to invest in individual stocks.

Disadvantages of Stash

• Fees: Management fees can get expensive, especially if you opt for a Stash+ account.
• No human advisors: You do not get access to a human advisor who offers personalized financial advice with Stash, no matter which account you choose.
• Limited investment options: With Stash, you can invest in stocks, bonds, and ETFs. If you’d prefer to invest in a different asset, you may want to look elsewhere.

4 important differences between Acorns and Stash

When evaluating Acorns vs. Stash, it’s important to consider the differences between the two. They have many similarities, including the simplicity of the offerings and limited investment choices. Plus, both offer round-ups and charge a flat fee based on the account features you’re looking for. However, there are some differences between the two. Here’s what you need to know as you decide which is likely to best meet your needs.

1. Features

Neither of these platforms offers the types of robust features, like tax-loss harvesting, that you might see when you use a robo advisor like Betterment or Wealthfront. And although Acorns and Stash have similar features, those features have some important differences.

With Acorns, you also get the extra Acorns Earn feature. With this feature, you’ll receive cash back that is automatically invested for your future. If you have the Acorns debit card, you earn a 10% bonus when you swipe, and the money is automatically invested.

On the other hand, Stash offers its Stock-Back® feature for its debit account customers. With Stock-Back®, you receive rewards in the form of fractional shares of a stock or fund when you shop.⁶ <p class="">All rewards earned through use of the Stash Stock-Back® Debit Mastercard® will be fulfilled by Stash Investments LLC and are subject to <a href="https://lp.stash.com/stride-stash-stock-back-rewards-terms-and-conditions/" target="_blank">Terms and Conditions</a>. 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.<br></p>

2. Fees

Both Acorns and Stash charge flat fees. For those with small account balances, this can result in an out-sized fee. However, as your account balance grows, the monthly fee can be an advantage. Both platforms offer tiered fees.

With Acorns, you can pay $3 per month for a Bronze account, which allows you to access the different IRA choices and a debit account. You can also choose to upgrade to a Silver account for $6 per month, which gives you access to custodial accounts in addition to all the benefits of a Bronze account. You also have the option of a Gold account for $12 per month, which gives you a full suite of saving, learning, and investing tools for you and your family.

Stash has two pricing tiers. The Stash Growth plan costs $3 per month, and it offers retirement account access in addition to a basic investing account, a robo-advisor Smart Portfolio, and a Stash banking account. If you want access to two custodial accounts, you can get it, along with all the Stash Growth features, with a Stash+ account for $9/month. The Stash+ account comes with a monthly market insight report.⁷ <p class="">Stash offers access to investment and banking accounts under each subscription plan. Each type of account is subject to different regulations and limitations. Stash Monthly Subscription Wrap Fee starts at $3/month. You’ll also bear the standard fees and expenses reflected in the pricing of ETFs, plus fees for various ancillary services charged by Stash and/or the Custodian. Please see the <a href="https://cdn.stashinvest.com/disclosures/StashInvest_Advisory_Agreement.pdf" target="_blank">Advisory Agreement </a> for details. Other fees apply to the bank account. Please see the <a href="https://cdn.stash.com/disclosures/stride-deposit-account-agreement.pdf" target="_blank">Deposit Account Agreement</a>.<br></p>

3. Expense ratios

Funds typically charge an annual expense ratio, which covers the cost of management and operating fees. Expense ratios are usually a percentage of the fund’s total assets. You can find information about the expense ratio in a fund’s prospectus.

In general, Acorns has lower expense ratios on their ETFs than Stash. Acorns expense ratios range from .03% to .18%. Stash, on the other hand, has an average of .23% for its ETFs, though the average on socially responsible investment ETFs is higher, averaging closer to .34%. You might find some ETFs with higher or lower expense ratios.

4. Types of accounts

When choosing between investment accounts, you also need to consider the types of accounts offered.

Both Stash and Acorns offer individual taxable investment accounts and custodial accounts. You can also get Roth or traditional IRA portfolios with both. However, Acorns also has a SEP IRA available, whereas Stash does not.

Acorns vs. Stash: which investment app should you choose?

When choosing between Acorns vs. Stash Invest, it’s important to consider your long-term needs. Both of these accounts are ideal if you want to start investing with a small amount of money and use investing as a way to meet your savings goals.

However, there are different ways to benefit from these accounts. If you want access to a SEP IRA, then Acorns is likely to be a better choice. Additionally, Acorns Earn can help you take rebate shopping to the next level, as anything you get back is invested, which multiples the benefit over time.

On the other hand, Stash offers a wider variety of ETFs than Acorns, and it allows users to invest in individual stocks. You also have more control over your portfolio with Stash than what you get with Acorns. 

FAQs about Acorns vs. Stash

The bottom line on Stash vs. Acorns

There is a wide range of best investment apps available if you're interested in getting started in the stock market. What works best for you depends on your situation and your investment goals. Both Stash and Acorns are relatively low-cost and have small investment minimums.

However, it’s important to note that both of these apps might not have all the features you’re looking for. Think about what matters most to you, whether you want more control or prefer a more hands-off approach to investing. If you want access to more advanced trading features, Robinhood could be worth considering, too. Check out our Robinhood vs. Acorns vs. Stash comparison to see how these apps stack up against each other.

Once you understand what you need, it’s easier to find the best brokerage account for you.