Stash is a revolutionary new app that takes your spare change from everyday transactions and invests it into the stock market for you. It’s a great way for first-time investors (or those who don’t know much about the market) to dip their toes in the water since you only need $5 to start. However, sometimes life happens and you may find yourself in need of the funds that you’ve invested with Stash or you prefer to invest it on your own.
Can you withdraw money from Stash and transfer it into another investment account? Yes, you certainly can withdraw your money from Stash and transfer it back into your personal banking account at any time. You’ll just need to sell the securities in your portfolio first, wait for the trades to go through, and then you can transfer your available Stash balance back into the same account you’ve linked with the service.
Today, I’m going to show you exactly how to withdraw money from Stash cash to invest it however you see fit. Stash is designed to be simple and easy-to-use, so by no means will they try to hold your money against your will. Withdrawing and transferring your money is very quick.
Withdrawing Money From Stash
An increasing number of young (and old) Americans are learning about the stock market. The recent Gamestop and AMC stock fiasco that rocked Wall Street and made headlines was enough to spark the interest of people who previously had no idea how stocks worked or even how to invest in them.
The past few months have seen Stash’s user base skyrocket along with other personal trading platforms that don’t require the large investments and monthly service charges that mutual funds and hedge funds do. The beauty of Stash is that you only need to be 18-years-old, be a U.S. citizen, and have $5.
Stash allows you to invest small amounts of money and invest in “fractional shares,” even if you’re just spending a couple of bucks! However, once you start learning a bit more about the stock market, save up some money, and build your portfolio with Stash, you may want to withdraw your money from Stash and invest using a larger platform with more options.
Thankfully, Stash understands this. They know that their app is primarily used by first-timers or those who don’t care to learn all of the technicalities of the market. The developers know that eventually, some of their users are going to educate themselves and move on to bigger and better things, so they’ve made it easy to transfer funds into your own personal accounts.
What Does Stash Do With Your Money?
To understand what money you can and can’t move, it’s useful to understand what Stash does with your money. Essentially, the app rounds up every purchase you make to the nearest dollar as long as you’re using a bank-issued debit card. They store this money on your Stash account, where you can then open the application and invest it into various securities.
In most cases, your money will remain untouched in your Stash balance, which means you can easily transfer it back into your bank account at any time. The one exception is if you have your Stash account to automatically invest or re-invest funds for you. In this case, as soon as it takes the money from your account, it will be invested.
If your money has been invested, then it may take a bit longer to get into your bank account as you’ll have to first sell your stocks, wait for the trades to go through, and then transfer it back to your personal account.
How To Withdraw Money From Stash Cash To Invest
Now that I’ve explained what Stash does with your money, I’m going to show you how to get your money back andinvest your cash wherever else you see fit.
Step 1: Sell Your Portfolio
Assuming that you already have a portfolio, the first thing that you’ll need to do is to sell off all of the stocks and securities in your portfolio. Open up the Stash app, look at your portfolio, and take an inventory of every stock that you own.
Then, you’ll need to select each stock and then sell it individually. You’ll typically be able to select whether you want your trades to be traded at the current market value or if you want to wait for them to reach a certain price before the trade is allowed to go through. The latter option can allow you to cash-out with a bit of extra money in your pocket, but it may take a few hours longer.
Step 2: Wait For Trades To Go Through
The SEC has a mandated waiting period of at least 24 hours that you must hold a stock before you can re-invest it. So if you’ve just invested into a stock that day, then you’ll have to wait until the next day for the trade to go through. Other trades will typically be completed within a few minutes.
Step 3: Transfer Funds Into Your Bank Account
Once you’ve sold all of your securities and they’re back in your Stash balance, just transfer them back to your linked bank account. You can’t directly transfer Stash funds into another investment portfolio (such as Robinhood or Webull), so you’ll have to send the money back to your bank first.
Don’t Forget To Cancel Stash Withdrawals (If You Want)
If you want Stash to keep rounding up your purchases and investing your money, then you can skip this step. However, if you want Stash to stop investing your money and withdrawing funds from your account, then you’ll need to disable or cancel your service under your ‘Account Settings.’
How To Invest Your Money From Stash On Your Own
Once the money has been sent back to your bank account (in 1-3 business days), it’s yours to invest however you see fit. The easiest way to re-invest the money is to sign up for a simple personal trading platform such as Robinhood or Webull. Both of these platforms allow you to trade fractional shares, and you can get started with just a few dollars.
If you’re interested in investing in cryptocurrency, then you can also download the Coinbase application. This platform allows you to trade different cryptocurrencies such as Bitcoin, Ethereum, and other “altcoins.”