How is investing different than a savings account?
Saving is putting money away in a safe location, commonly a savings account, for use at a later time. Savings accounts are great ways to put your money away in a safe place for future needs. However, savings accounts have their limits. Most savings accounts pay very low interest rates, which means that the money you put in a savings account isn’t growing much. It might grow a little, but savings accounts are a way to keep your money safe, not a way to make your money grow.
Investing is participating in the market to buy and sell securities (for example: stocks, bonds, ETFs) in order to potentially make returns and earn dividends. There is more risk with investing than with saving, but the potential for rewards is also higher. Investing is more complex than saving (regulations, tax implications, etc), which is why Stash is simplifying the process.
Q. Do single stocks trade like ETFs on Stash?
Yes. You can buy and sell a stock on Stash just like all of the other ETFs that are available to you on the platform. Stash executes trades (buys and sells) in two trading windows each business day. All trades placed are queued up and executed during these trading windows. Stash trading windows only operate…
Q. Am I ready to open a Retire account?
Stash Retire accounts are a tax-efficient type of account designed to help you invest for retirement. If you’d like to learn more about why people decide to open Retire accounts, please read this article. If you’ve decided that saving for retirement is right for you, we offer two different types of individual retirement accounts (IRAs):…
Q. What is a custodial account?
A custodial account allows a parent (or grandparent, other family member, or friend) to open a savings/investing account for a minor*. Until the minor reaches the “age of majority” (usually 18 or 21 depending on the State), only the adult or ‘Custodian’ who opened the account can manage the funds. Think of the age of…
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