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, rising 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, if you start investing earlier, you can maximize your money’s growth potential and take advantage of compound returns over the years.

Why should I invest with Stash?

Stash has eliminated many of the barriers that prevent the average American from becoming an investor. With a Stash investment account, you can invest in fractional shares with $1 or less, set recurring investments to stay on track, and get unlimited guidance and financial education designed to help you get to your goals. Beginner or pro, you can get the tools and advice you need to start investing with confidence on Stash.

Learn more about Stash investment accounts →

Stash is a personal finance app that can help anyone improve their financial life.

From budgeting to saving for retirement, Stash unites banking,¹ investing, and advice in one app that helps over 5 million people reach their financial goals—all for one low monthly price.^†

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 manage your money and get more out of your paycheck. 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 you with useful advice for everything from budgeting to investing.

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, online banking¹, budgeting and saving tools, the Stock-Back® Card, and advice and education. Depending on the plan you choose, you can also add a retirement account (IRA) and custodial investment accounts for kids.

3. Add money to Stash
   You can add money to Stash in two ways: direct deposit with early payday³ or link another bank to make recurring or one-time transfers.

4. Bank, budget, and create goals
   Use our bank account and automatic budgeting and saving tools to organize your cash into different spaces,⁶ create goals, and track your spending.⁷

5. Invest in fractional shares
   Once you’ve added cash to invest, you can immediately start investing in fractional shares of thousands of stocks and ETFs with $1 or less. Stash is built for long-term investing, not day-trading, so we only trade during four trading windows every day. (Note: Availability of trading windows is dependent on market conditions and may be subject to limitations.)

6. Earn stock rewards
   Spend with your virtual or physical Stock-Back® Card to start earning pieces of stock from Stash as rewards for your everyday spending.¹

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

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.

Bank Account Services provided by Green Dot Bank, Member FDIC. Investment products and services provided by Stash Investments LLC, not Green Dot Bank, and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.

Learn more about how we protect you and your assets →

Stash offers three subscriptions plans, starting at just $1/month.^†

Stash Beginner costs $1/month. It can work for first-time budgeters and investors and includes banking with the Stock-Back^® Card,¹ investing, budgeting, and personalized advice.

Stash Growth costs $3/month. It can work for people who want to build wealth over the long run and includes banking with the Stock-Back^® Card, investing, budgeting, personalized advice, and a Roth or traditional retirement account (IRA).

Stash+ costs $9/month. It can work for people with kids, debit card spenders, and those who want to learn more and includes banking with the metal double Stock-Back^® Card, investing, budgeting, personalized advice, a Roth IRA or traditional IRA retirement account, custodial investment accounts for kids, and an exclusive monthly market insights report.

Compare all subscription plans →