Stash Stock-Back Rewards Card Review

Who is the Stash Stock-Back Rewards Card for?

The Stash Stock-Back Rewards Card is a unique debit card that comes with benefits that mimic the mechanism of several popular credit cards without accompanying credit risk. The theme that Stash carries is one based on investing and saving. For a small account fee, you can earn points on your daily purchases made through this card that are then used to buy stocks and garner returns on them. Considering this system, it should be made clear that this is not a credit card and will not provide you with a credit line. 

This card and its accompanying account is great for people looking to save money through their daily purchases and do not want to risk using credit. It may be optimal for people with low or bad credit that want a debit card that lets them invest in the stock market without the hassles that come along with brokerage accounts and commissions. 

Overall, this card is perfect for those looking to open a brokerage account that can be used as a regular checking account. Without the bells-and-whistles of a credit card and the commissions of a brokerage account, the Stash card offers a great option for people looking to invest in the stock market. 

Monthly Fee

Stash gives you the option of selecting from three different account types, and the rewards card comes free-of-cost with each one. The cheapest account type is the beginner account, which has a monthly fee of $1 ($12 annually). Since you earn 0.125% Stock-Back rewards, you need to make $96 in purchases using this card in order to earn $12 worth of stocks annually. Next is the Growth account with charges $3 per month ($36 annually). You need to spend at least $288 through this account to get $36 in stock-back rewards. Finally, the Stash+ account costs $9 per month ($108 annually). To break-even with this account fee, you need to spend $432 annually because you get 2x in stock-back rewards. 

Rewards

As mentioned before, Stash offers three financial plans starting at just $1/month. Each plan comes with access to an optional bank account. The no-hidden-fee debit account has zero set-up, monthly, maintenance, minimum, or overdraft fees. It also comes with access to over 19,000 fee-free ATMs. 

Since this is not a real credit card, the rewards program is simple. You’ll earn 0.125% Stock-Back rewards on all of your everyday purchases and up to 5% Stock-Back rewards at certain merchants with Stock-Back bonuses. When you spend at companies that have stocks listed on Stash’s platform, like Walmart, Amazon, and Starbucks, you’ll earn Stock-Back rewards in those companies. When you spend anywhere else, like your local car wash, your stock-back money will be invested in a diversified ETF fund instead.

Cautions

Since this is not a credit card, it does not come with any fraud-protection programs, which means that in case of theft or fraudulent transactions, you might be put on the hook.

Also, the stocks that you receive as a part of the rewards program are not actually recommended by Stash and you might be exposed to market volatility and risk. This means that you should keep a close eye on your account and the stocks that have been bought through your rewards points. Finally, the card also comes with a 3% foreign transaction fee, which can really add up over the course of a vacation. If you are looking for a travel-friendly card, look elsewhere. 

Conclusion

If you are looking for a debit card with a savings-based rewards program, this card is for you. The Stash Rewards card offers a great opportunity to invest money on-the-go and helps you earn points on daily purchases.