Stash compound interest calculator

Compounding is one of the most important terms for a beginner investor to understand. Compounding is the process where any return earned on an investment gets added to the principal amount invested. The interest rate is then applied to that new, larger principal amount. Simply put, compounding is like earning interest on interest—similar to the snowball effect.

Over time, compounding could have an exponential effect on your money. That’s why it can be important to start saving and investing as soon as possible, to let the power of compounding work to its full advantage.

Investing can be a critical part of building wealth. As time passes, inflation can eat away at the value of your saved cash—making it worth less over the years. On the other hand, the average annual return of the S&P 500 has been around 8%, historically. Even if it’s just $1 at a time, it’s important to start investing as soon as possible so you can maximize your money’s growth potential and take advantage of compound returns over the years.

Stash is a personal finance app that simplifies investing, making it easy and affordable for everyday Americans to build wealth and achieve their financial goals.

Stash was built with a simple philosophy: everyone should have access to investing. Thanks to fractional shares, anyone can invest in the stock market with $5 or less. And along with other investing and saving tools, like the Stock-Back^® Card,¹ Stash helps more than 5 million people reach their financial goals. (This is not an endorsement or a statement of satisfaction by any Stash client and is defined by the number of clients who have e-signed.)

ASAP Early direct deposit is a feature that you can access through your bank account with Stash. Your employer or benefits provider will often notify us of your incoming deposit in advance of your actual payday. If that happens, we can credit your pay or benefits to your bank account instead of waiting for payday—up to 2 days earlier! Learn more about early direct deposit.⁴

Stash can give you everything you need to build wealth for the long-term. Here’s how Stash works.

1. Answer a few questions.
   When you first join Stash, we’ll get to know you by asking some questions. These help us understand your financial goals and provide useful, specific advice for things like investing and budgeting.

2. Pick a plan.
   Then, you’ll pick your subscription plan, starting at just $1/month.^†
   With Stash, you always get access to investing with a personal brokerage account, the Stock-Back^® Card,¹ budgeting and saving tools, advice and education, and life insurance coverage through Avibra.^‡ Depending on the plan you choose, you can also open an individual retirement account (IRA)⁴ and investment accounts for kids.⁵

3. Add money to Stash.
   You can add money to Stash automatically or manually. If you have 5 minutes, you can set up direct deposit to send either all or a part of your paycheck straight to Stash. You can even receive your paycheck up to 2 days early.³

4. Bank, budget, and create goals
   You can also use our automatic budgeting and saving tools to organize your cash into different spaces,⁶ create goals, and track your spending.

5. Invest your way.
   Once your cash is in Stash, you can choose to invest it in fractional shares of thousands of stocks and ETFs with $5 or less, or make purchases with the Stock-Back^® Card¹ and earn stock on Stash as you spend.

   Stash is built for long-term investing, not day-trading, so all of our market transactions execute during four trading windows each weekday. (Note: Availability of trading windows is dependent on market conditions and may be subject to limitations.)

Is Stash legit? Yes. From your investments to your cash, you can feel confident in the security of your money on Stash.

• Stash uses cutting-edge security features.
• Stash works to keep your spending safe and secure.
• Stash is a registered investment advisor with the US Securities and Exchange Commission (SEC).

  While such registration does not imply a certain level of skill, it does require us to follow federal regulations that protect you, the investor. By law, we must provide investment advice that is in the best interest of our client.

• Stash offers FDIC-insured bank accounts through Green Dot Bank.¹

Learn more about how we protect you and your assets →

Stash offers three easy plans for long-term investing, starting at just $1/month.^†

Stash Beginner costs $1/month. It can work for first-time budgeters and investors. It includes a personal investment account, the Stock-Back^® Card,¹ saving tools, personalized advice, and $1,000 of life insurance coverage through Avibra.^‡

Stash Growth costs $3/month. It can work for people who want to expand their long-term wealth building plan. It includes a personal investment account, the Stock-Back^® Card, saving tools, personalized advice, a Roth or Traditional retirement account (IRA),⁴ and $1,000 of life insurance coverage through Avibra.^‡

Stash+ costs $9/month. It can work for savvy wealth builders and debit card spenders. It includes a personal investment account, a Stock-Back^® Card that earns double stock,¹ saving tools, personalized advice, a Roth IRA or Traditional IRA retirement account, investment accounts for kids,⁵ an exclusive monthly market insights report, and $10,000 of life insurance coverage through Avibra.^‡

Compare all subscription plans →