These days, it’s becoming more and more popular to automate your finances to save money. Apps like Digit can help automate savings, so you can start building your rainy-day fund today with minimal effort. So what is Digit all about? Read our Digit review to find out more.
Digit Review: Overview
Digit is a micro-savings app that provides a suite of savings tools to help you effortlessly grow your savings account.
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 features.
It is also a good way to analyze your spending habits.
This can also help you establish a more effective habit of saving — with no minimum balances required.
So really, this app is more than just a way to save money: it provides you a detailed analysis that you can use to improve your saving strategy.
Start Saving Money with Digit
Digit is a micro-savings type of design, meaning it takes small amounts from a bank account to help work towards savings goals.
Digit is like savings apps that automatically add to a savings account, but the Digit app offers some features which others do not.
Digit also offers helpful features such as overdraft protection, savings bonuses, and automated saving that make the app a good choice for those looking to easily add to their nest egg.
Also, Digit’s algorithm aims to adapt to your savings habit based on the objectives and timelines that you’ve set.
Most importantly, Digit offers free, unlimited withdrawals, so you never have to worry about accessing your money when you need it.
The service is a solid way to start a rainy-day fund, save for retirement, or budget to pay off student loans and credit card debt.
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
Save Money, Save Time with Digit
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.
While you should have an active approach to building your savings, the app’s automated features can cut down on the time it takes to put your savings plan into action.
The app strives to help make a habit of savings by transferring your money for you at regular intervals.
Even better, once you set up the service, you barely need to lift a finger to save money.
There’s even a savings bonus to sweeten the deal, but we’ll touch on that a little later.
Digit Quickly Connects to Your Bank Account
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 for 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.
This is also dependent on what you set for your minimum balance, which will determine when the service will move money.
Also, Digit can only link to one checking account at a time.
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, debit card number, phone number, and other 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 so the company can keep in touch about 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 have a low checking account balance 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, save money, build a rainy-day fund and set savings goals to pay off student loan or credit card debt.
Let’s take a look at those features below:
- Automatic Savings
- Savings Bonuses
- Overdraft Guarantee
- Text Communication
- Student Loans Feature
- Investment Account
- Digit Pay
Keep reading our Digit review for a breakdown of each feature.
Digit Automatic Savings Review
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.
In short, the service makes it extremely easy to save money.
Better yet, Digit uses machine learning to analyze your linked bank account, so you always stay up to date on your savings.
Digit Savings Bonuses Review
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.
There is no minimum account balance to earn the bonus, which is pretty convenient if you’re on a tight budget.
Keeping money in your Digit account allows your 0.1% annualized savings bonus to add more money to your annual savings.
Digit Overdraft Guarantee Review
If your linked checking account is ever overdrawn due to Digit taking money from your checking account, it will reimburse you up to two times the overdraft fees.
If an overdraft does occur, you can reach out to Digit, submit a form, and will be reimbursed for the overdraft fee.
This feature makes it a lot easier to trust the service because you know when you’re saving money, Digit has your back if it makes a mistake.
Digit Text Communication Review
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 through 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.
Digit Student Loans Feature Review
Digit can help you save for and pay off your student loans by connecting to your loan servicer.
This can help you quickly set a goal for repaying your student loan debt.
The service works similar to setting up repayment on your credit card.
Digit Investment and Retirement Accounts Review
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.
Also, Digit knows all the rules about annual limits, so there’s no need to worry about contributing more than what’s allowed.
Digit Pay Review
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.
If you want to know if your credit card provider is included, you can check the Digit site for more information or reach out to support.
Digit Customer Service Review
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 Review
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.
In fact, it’s surprising that the service doesn’t cost even more considering everything it offers.
A $5 monthly fee is a steal — especially when you take into account the savings bonus feature.
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 makes saving money simple
- FDIC insured up to $250,000
- You can set your minimum bank account balance for saving
- After using Digit for three consecutive months, you earn a 0.10% annualized Savings Bonus
- Automatic transfers have overdraft protection
- Savings bonus paid out every three months based on the average daily balance over that time
- Can set up savings goals, like paying off student loans or credit card debt
- Instant withdrawals make it easy to withdraw funds on the go
- $5 Referral per sign-up
- Overdraft protection
- 30-day free trial
- Free, unlimited withdrawals
- Investment and retirement accounts
- Digital chatbot for easy communication
- $5 monthly fee
- Doesn’t round up debit card purchases
- Instant withdrawals cost $0.99 each
- Digit only links one checking account
- Little transparency when it comes to its algorithms
- Minimal interest on savings because Digit is not a bank
- Not good for saving for the long-term — it’s more of a personal finance tool
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.
Though, if you’re 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’s no limit to what you can use Digit to save while striving to reach a financial goal.
If you are okay with the $5 monthly fee, then Digit just may be worth it.
Currently, the company is also running a 30-day free trial, so you should take that into account as well.
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.