Popular Investing App Gets New Feature

The popular investing app, Stash, now offers users a “round-up” feature that allows them to invest the change from each purchase with connected cards. For example, a $4.52 purchase would trigger a $5.00 charge to the card. $4.52 would go to the merchant, and $.48 would go into the user’s Stash account, automatically.

Acorn, a competing investment app, also rounds purchases up to the next dollar, allowing users to invest the change from each purchase. Both automatic investing apps are popular with millennials.

Stash will also offer cash-back rewards on certain debit and credit card purchases, soon. You can open an investment account with Stash with just a small $5 initial deposit. 86% of Stash users are first-time investors.

Investing apps offer a good way for those who don’t have experience with investing to get some hands-on experience with very little risk. The accounts are simple to set up and the app interfaces are intuitive.

Investing apps should never replace traditional retirement savings in 401(k) accounts or IRAs, however. While the majority of Americans don’t have enough money saved for retirement, millennials have time on their side. They can set money aside while enjoying the associated tax breaks without worrying too much about market fluctuations.

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5 years ago
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