Different investment platforms cater to different levels of personal control over day-to-day trading. Stash and Betterment represent two distinct approaches to managing money online, differing in fee structures, available assets, and account options. Examining how each service structures its features shows how they align with different trading and saving habits.
Side-by-Side Overview of Platform Features
Comparing core features shows how each app structures its minimum requirements, accounts, and investment options.
| Feature | Stash | Betterment |
|---|---|---|
| Minimum Investment | $1 | $10 |
| Management Fees | $12 per month | 0.25% to 0.65% |
| Available Asset Classes | Stocks and ETFs (including fractional shares) | ETFs (U.S. and international stocks and bonds) |
| Core Account Types | Taxable, Roth IRA, Traditional IRA, Custodial | Taxable (Individual and Joint), Roth IRA, Traditional IRA, SEP IRA, Inherited IRA, Rollover, Trusts |
| Portfolio Management | Self-directed or Smart Portfolios | Fully automated robo-advisor |
| Tax-Loss Harvesting | Not available | Available |
| Banking Integration | Debit account with Stock-Back rewards | Checking account and High-Yield Cash Reserve |
Flat Monthly Fees Versus Percentage-Based Asset Charges
Account fee structures affect long-term net returns. Stash charges a flat monthly fee of $12, meaning the fee's proportion of the portfolio decreases as the balance grows.
Betterment charges an annual management fee calculated as a percentage of the balance, ranging from 0.25% to 0.65%. Its standard Digital plan costs 0.25%, while the Premium plan costs 0.40% and includes unlimited phone consultations with a financial advisor.
A flat $12 monthly charge stays the same regardless of account size, whereas a percentage-based fee scales directly with total assets. Investors starting with smaller balances pay a higher percentage of their assets under a fixed monthly fee than under a percentage fee.
Portfolio Control and Investment Selection Options
The two services handle investment selection differently. Betterment functions strictly as a robo-advisor. During account setup, it gathers details about your financial goals, timeline, and risk tolerance to build a portfolio of exchange-traded funds (ETFs) containing U.S. and international stocks and bonds. Betterment automatically rebalances assets and reinvests dividends to maintain your target allocation.
Stash combines hands-on trading with automated features. Account holders can select individual stocks and ETFs, purchasing fractional shares for as little as $0.05 on assets priced at $1,000 or more per share. Stash also offers discretionary Smart Portfolios with automatic rebalancing and dividend reinvestment tailored to personal risk profiles. Unlike Stash, Betterment includes automated tax-loss harvesting to help manage tax liabilities.
Available Account Types for Taxable and Retirement Goals
Available account types depend on whether the goal is general investing, retirement savings, or managing assets for family members. Stash offers individual taxable brokerage accounts, Traditional IRAs, Roth IRAs, and two custodial accounts for minors.
Betterment offers a broader selection of account options. In addition to individual taxable accounts, Traditional IRAs, and Roth IRAs, Betterment provides joint taxable accounts, SEP IRAs for self-employed individuals, inherited IRAs, rollover accounts, and trusts. These options accommodate investors who need specific ownership arrangements or tax-advantaged structures.
Banking Options and Automated Savings Features
Both platforms include cash management and banking services alongside investment accounts. Stash provides an online banking account through Stride Bank, N.A., Member FDIC, which includes a debit card without overdraft or minimum balance fees. Its Stock-Back rewards program earns stock rewards of at least 0.125% (and up to 1% under qualifying conditions) on eligible debit card purchases. Spending at publicly traded merchants yields shares in that specific company, while purchases at non-public merchants earn shares in an ETF. Stash also offers spending insights and round-up options that transfer spare change into investments.
Betterment manages cash through a checking account and a High-Yield Cash Reserve account. Cash Reserve funds sweep to participating Program Banks, earning variable interest rates and offering FDIC insurance coverage up to $2,000,000 for individual accounts (or $4,000,000 for joint accounts). While Betterment does not utilize purchase round-ups, its cash tools centralize uninvested cash alongside long-term portfolios.
Matching Platform Mechanics to Your Financial Approach
Selecting between Stash and Betterment depends on preferred management styles and account requirements. Stash provides options for picking individual company shares, earning stock rewards on everyday spending, and using optional Smart Portfolios. Betterment offers automated portfolio management, tax-loss harvesting, access to human financial advisors, and expanded account options such as joint accounts, SEP IRAs, and trusts.
