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Acorns vs. Stash - Which Investment App is Better for Beginners

January 15, 2022

Acorns vs. Stash - Which Investment App is Better for Beginners

Investing can seem daunting, especially if you're new to it. Fortunately, there are investment apps out there that make it easy even for beginners to start investing their money. Acorns and Stash are two of the most popular investment apps, but which one is better for beginners? In this post, we'll compare Acorns and Stash to help you decide which one is right for you.

Fees

One of the most important things to consider when choosing an investment app is fees. Both Acorns and Stash charge fees for their services, but they differ in how they structure them.

  • Acorns: There are three subscription options with Acorns. Lite costs $1/month and includes investment options, automation, and access to financial education. Personal costs $3/month and includes everything in Lite, plus retirement, checking, and investment accounts. Finally, Family costs $5/month and includes everything in Personal, plus investment accounts for kids. Note that in addition to the monthly subscription fee, there's also an investment fee of 0.25% per year for accounts with a balance over $5,000.
  • Stash: There are also three subscription options with Stash. Beginner costs $1/month and includes personal investment guidance, access to financial education, and a basic investment account. Growth costs $3/month and includes everything in Beginner, plus a retirement account and a more advanced investment account. Finally, Stash+ costs $9/month and includes everything in Growth, plus a metal debit card, a stock back rewards program, and more. Unlike Acorns, Stash doesn't charge an investment fee.

Investment Options

Another important factor to consider is the investment options offered by each app.

  • Acorns: Acorns invests your money in a portfolio of exchange-traded funds (ETFs). You can choose from five portfolio options, ranging from conservative to aggressive. You can also invest in individual stocks through Acorns' "Found Money" program, which rewards you with cash back when you shop at certain retailers.
  • Stash: Stash also invests your money in a portfolio of ETFs, but it offers a wider range of investment options. Stash has over 200 ETFs to choose from, and you can also invest in individual stocks and cryptocurrencies.

User-Friendliness

Finally, it's important to consider how user-friendly each app is.

  • Acorns: Acorns has a simple, clean interface that makes it easy to navigate. The app is well-designed and easy to use, even for beginners.
  • Stash: Stash's interface is also user-friendly, but it's a bit busier than Acorns'. Stash's focus on education means that the app provides more information than Acorns, which may be overwhelming for some users.

Conclusion

So which investment app is better for beginners - Acorns or Stash? Ultimately, it depends on your individual preferences. If you prefer a simple, streamlined interface and don't mind paying an investment fee, Acorns may be the better choice for you. If you want a wider range of investment options and don't want to pay an investment fee, Stash may be the better choice. Whichever app you choose, remember that investing involves risk, so be sure to do your research and invest wisely.

References

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