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Stash

Auto-Stash Can Help You Double Your Savings

January 22, 2020

2 min read

Light a fire under your cash with just a tap of a button.

We tested it: As of August 2018, Stash customers that kept Auto-Stash turned on for a year saved twice as much on average as Stashers who didn’t.

Stash customers who had Auto-Stash turned on for a year saved $1,432. Customers who didn’t? $665.59.

That’s a big difference.

See below for methodology and disclaimer1

What is Auto-Stash?

Auto-Stash is a suite of three different tools—Set Schedule, Round-Ups, and Smart-Stash.

With Set Schedule, you can easily build a schedule to save and invest a set amount. You select the amount you want to set aside, when and how often you want to set it aside, and whether you’d like Stash to automatically invest it in your ETFs and stocks, or simply place the money in your cash to invest balance.

If you choose to enroll in Round-Ups, Stash will round up your purchase to the nearest dollar every time you spend with the debit card associated with your linked checking account. For example, if you spend $10.50, we’ll automatically round up your purchase by $.50. Once your savings add up to $5 or more, we’ll transfer the spare change to your personal investment account cash to invest balance. From there, you can invest it into any of Stash’s investment offerings.

Smart-Stash is designed to help you save your spare cash by analyzing your spending and earning patterns. Smart-Stash studies your recurring transactions, such as rent or mortgage payments, as well as how often and how much you typically get paid, and then sets aside small amounts of money. You can set your maximum transfer to $5, $10, or $25, which we’ll move to your cash to invest balance once you have accumulated enough funds.

Convince me, why should I Auto-Stash?

Making small deposits and investments on a regular basis is one of the keys to smart investing. When you invest a little bit on a regular basis, you don’t need to worry about picking the right time to invest. If you invest on a schedule, you’ll get some at a higher price, and some at a bargain and your average price will be somewhere in the middle.

That’s called dollar-cost averaging and it’s a key part of the Stash Way.

One thing to remember: When turning on Auto-Stash is that this money will be taken out of your account automatically so if you don’t have enough money to cover the Auto-Stash, your bank may charge you an overdraft fee.

Yes, I want to automate my savings!

Right on, just go to the Stash app and turn on Auto-Stash.

Don’t have Stash yet? You can sign up now.

Investing, simplified

Start today with as little as $5

Get the App

By Stash Team

1Chart disclaimer: The data is for the one year period after a user makes their first transfer. The example is a hypothetical illustration of mathematical principles and is not a prediction or projection of performance of an investment or investment strategy. The example does not account for fees.
Methodology: This analysis was done by comparing Stash users who had Auto-Stash on for at least a year (86,718 users) vs. users who had never turned on the Auto-Stash feature (24,101 users) but continued to save without Auto-Stash throughout that year. The amount saved is the average dollar amount users were able to save in their Stash accounts in a one year time period starting on the date of their first transfer or first Auto-Stash.

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Disclaimers

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.