These days, it’s becoming more and more popular to automate your finances. With apps like Digit, which help automate savings, you can start saving with minimal effort. So what is Digit all about? Read our Digit review to find out more.
Digit Review: Overview
Digit is among many savings tools that help you effortlessly grow your savings throughout the month without even trying.
The company first appeared on the scene in 2015 and has already saved users over one billion dollars.
CEO and founder Ethan Bloch created the money management app to help attain their personal finance goals. He believes that anyone can start saving, regardless of income.
What is Digit?
Digit helps you set aside money for a savings account, retirement account, or investment account with its automatic savings.
It is also a good way to analyze your spending habits. This can get you into using a more effective habit of saving at the same time.
Digit is like savings apps that automatically add to a savings account, but the Digit app offers some features which others do not.
Digit is a micro-savings type of design, meaning it takes small amounts from a bank account to help work towards savings goals. While it may not be the best for saving for large purchases, it can help your ability to save improve with time.
Digit also offers helpful features such as overdraft protection, saving bonuses, and automated saving that make the app a good choice for those looking to easily add to their nest egg.
Most importantly, Digit offers free, unlimited withdrawals, so you never have to worry about accessing your money when you need it.
Digit Review: How Does Digit Work?
Digit works by analyzing your current spending habits and transferring money from your checking account or other linked bank accounts to your Digit account.
There are no account minimums, so you can decide how much to keep in your account at any given time.
Once the Digit app analyzes your spending habits, any extra money left after the financial review will be moved into your Digit account.
The service uses an algorithm to determine how much money to add to your savings. Digit will transfer your money to their banking partners, Wells Fargo, BoFi Federal Bank, and Opus Bank, where your money will be safe in an FDIC-insured account.
Digit takes four factors into account when reviewing your bank account. It analyzes your:
- Checking account balance
- Regular, expected income
- Upcoming bills
- Recent spending
Digit moves money from your checking account every 2-3 days. The service takes into account upcoming bills, lifestyle, and spending habits to determine a safe amount of money to withdraw.
The app strives to help make a habit of savings by transferring your money for you at regular intervals.
Digit works with over 7,000 banks in the U.S., making it easy for you to connect your checking account to the Digit app.
The service is also only available to U.S. customers at the time being, although there are plans to expand their service to international customers as well.
How Much Does Digit Take From My Checking Account?
Digit uses the balance in your checking account or linked bank accounts to determine how much to withdraw and move to your Digit account.
This means that you may not see large amounts of money transferred over unless you have a very high balance in your checking account.
The average amount taken from your checking account and added to your Digit savings account is somewhere between $10-$30. Of course, this can differ based on the balance of your checking account, your income, spending habits, and upcoming bills.
Digit Review: Is Digit Safe to Use?
Digit savings accounts are FDIC insured for up to $250k.
The platform also protects your personal info such as bank account information, phone number, and personal details by using military level 256-bit encryption.
Your personal information is saved for only 30 days after you close your account as well. It is only stored for this amount of time in order to be able to keep in touch over returning funds to you.
You can also turn overdraft protection on in the app, meaning the service will not take money from your checking account if it would cause you to overdraft your account.
This is good news for those who keep a lower balance in their checking account and want to use Digit but also do not want to incur any overdraft fees.
What Does Digit Include?
The app has many features in place to help you manage your finances. Let’s take a look at those features below:
- Automatic Savings
- Savings Bonuses
- Overdraft Guarantee
- Text Communication
- Student Loans Feature
- Investment Account
- Digit Pay
Automatic savings is Digit’s most prominent feature.
When it comes to personal finance, Digit helps you to reach your savings goals by automating the process of transferring money to your savings account.
Digit aims to help you make sense of personal finance when it comes to putting money away so that it’s not sitting in a checking account where it doesn’t accrue interest.
You will get a savings bonus of 0.1% annually when you use Digit to save.
Like most banks, your Digit savings account balance helps you generate income in the form of interest payments.
Keeping money in your Digit account allows your 0.1% annualized savings bonus to add more money to your annual savings.
If your account is ever overdrawn due to Digit taking money from your checking account, it will reimburse you up to two times the overdraft fees.
Digit messages you to let you know when it has moved money from your checking account into your Digit account via text.
Digit will keep you informed on how much each transfer was for and your savings balance via text message.
You can also inform Digit via text message whether to save more, save less, or stop saving altogether. You can even send a text message to view your account balance.
Student Loans Feature
Digit can help you save for and pay off your student loans by connecting to your loan servicer. This can help you set a goal for repaying your student loan debt.
Investment and Retirement Accounts
If enabled, Digit will automatically move money into an investment or retirement account, such as a Roth IRA.
Digit matches individuals with a diversified portfolio of exchange-traded funds based on the level of risk they prefer.
The platform can also set users up with an IRA to start saving for retirement. Digit knows all the rules about annual limits, so there’s no need to worry about contributing more than what’s allowed.
The money-saving app recently launched a service called Digit Pay, which allows you to make payments on your credit cards to most credit card providers.
By linking credit cards to your Digit account, Digit will help you make regular payments with little effort on your part. Digit uses the savings in your Digit account to make the payment, just as you would with a debit card.
Digit offers some customer service, mainly in the form of a help page.
Users who need help with a specific query can either email digit at firstname.lastname@example.org or submit a help ticket via the site.
Digit attempts to respond to all tickets and emails within 48 hours. Business hours are Monday-Friday, 9 AM to 5 PM PST. Limited support is available to customers on both weekends and bank holidays.
Digit Mobile App
The Digit app works with both Apple and Android phones. You can keep track of your savings from anywhere without needing to log on to a desktop site.
Digit Review: Cancellation Policy
You can cancel Digit at any time. Digit will then move any amounts left in your Digit savings into your linked bank account.
The savings app will keep your information on file for 30 days in case they need to get in touch with you regarding returning funds.
How Much Does Digit Cost?
Digit charges a monthly fee of $5 to use its services. The money Digit can help you save may be worth the small investment, however.
Digit Review: Pros and Cons
There are both pros and cons that come along with using the app for saving and goal setting. The company offers services that can help you with your finances but leaves something to be desired in some areas as well.
- Automatic savings system
- FDIC insured up to $250,000
- $5 Referral per sign-up
- Simplified goal-setting
- Overdraft protection
- Free, unlimited withdrawals
- Investment and retirement accounts
- Digital chatbot for easy communication
- $5 monthly fee
- Doesn’t round up debit card purchases
- Digit only links one checking account
- Little transparency when it comes to the algorithms
- Minimal interest on savings
- Not good for saving for the long-term
Is a Digit Account Right for Me?
Digit may be a good service for you if you have trouble sticking to savings habits with the extra money you have in your checking each month.
By automating savings for investments, retirement, debt repayment, or an emergency fund, Digit can help you to reach a savings goal more quickly.
If you are using Digit to save up for a large purchase, the app may not be the best option out there.
The $5 fee charged monthly should also be taken into account. If your checking account balance usually stays relatively low, you may not even see $5 transferred into your savings each month.
Digit App Reviews by Subscribers
The Better Business Bureau rating for Digit is a B, with over 270 complaints by users.
All complaints have been closed, but some that left a Digit review were disappointed with the transparency the company provides. There are claims that the company did not fully explain how much would be taken from their savings and at what intervals.
Other users tend to say that Digit was slow getting their money back to them after cancellation. Subscribers who closed their accounts and wished to receive their balance in the form of a check reported that the company was slow in getting it to them.
There were also good reviews about the app on other sites, however. The average review rating was around four stars for the money management app on review websites across the web.
One user even wrote an app review on Business Insider, claiming that the app helped her save over $20,000.
Many seem to use Digit as a way to better their savings habits and reach a financial goal. The automated savings feature is applauded by some, while others feel that it transfers too much money. Some do not like that there is very little transparency on how Digit determines how much to save.
Digit Final Review: Is Digit Worth It?
As an FDIC-insured savings app, Digit offers a good way to manage your money with automated micro-savings.
The platform works well for getting into good habits when it comes to saving money. There is no limit to what you can use Digit to save for while striving to reach a financial goal.
If you are okay with the $5 monthly fee, then Digit just may be worth it.
This is especially true if you have a hard time saving or remembering to do so. The app is a good way to start saving for the future by paying off debt, putting money towards an emergency fund, or funding short-term goals.
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