These days, automating your finances is something that has become popular. With apps like Digit, which help automate savings, you can easily start saving with very little effort. The platform works like a savings account, which automatically draws money from a linked bank account and adds it to an account managed by Digit. 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. CEO and founder, Ethan Bloch, created the money management app to help adult users better reach their personal finance goals. 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 savings habit at the same time.
Digit is like savings apps that automatically add to a savings account, however, the 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 savings process improve with time.
Digit also offers some 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 4 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 and 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 is taken from my checking account by Digit?
Digit uses the balance in your checking account or linked bank accounts to determine how much to withdraw and add to your Digit account. This means that unless you have a very high balance in your checking account, your savings will not necessarily grow rapidly or by much.
The average amount taken from your checking account and added to your Digit savings account is between $10-$30. Of course, this can differ based on the balance of your checking account, your income, spending habits, and upcoming bills.
Can Digit Be Trusted?
Digit savings accounts are FDIC insured for up to $250k. Along with FDCIC insured deposits, Digit also protects your personal info such as your bank account information, phone number, and personal details. 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?
There are a good amount of Digit features offered by the service that are designed to help you reach a savings goal. The app has many features in place to help you manage your finances by moving different amounts to your Digit account to use for an emergency fund, investments, retirement, or to help you reach your savings goals.
- Automatic Savings
- Savings Bonuses
- Overdraft Guarantee
- Text Communication
- Student Loans Feature
- Investment Account
- Digit Pay
Automatic savings are the top Digit 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 that otherwise sits in a checking account that doesn’t accrue interest.
You will get a savings bonus of 0.1% annually when you use Digit to save. This is one feature that helps your savings balance grow further over time. Like with most banks, your Digit savings account balance helps you generate income in the form of interest payments, so keeping money in your Digit account allows your %0.1 annualized savings bonus to add more money to your annual savings. The interest accrued from your annualized savings bonus is paid every 3 months.
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.
Another feature is text communication. With this, Digit messages you to let you know when it has moved money from your checking account into your Digit account. 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 also simply 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.
Digit recently introduced a new feature which helps you save money to put towards investments. Digit will automatically move money into an investment or retirement account, such as a Roth IRA. This is helpful for those who want to start investing but need some help getting started funding an investment account or funding it on a regular basis.
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. This can further help with money management as it links your credit card accounts to its platform, allowing payments to be made regularly and on time without having to think too much about it. 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, mostly in the form of a help page. For users who need help with a specific query, they 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. It can help you keep track of your savings easily, 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. This is 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 Reviews: 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– Digit makes it easy to save. You can save as little or as much as you want. You can withdraw your money at any time for free.
- FDIC Insured Up to $250,000. Funds are held by Digit partners Wells Fargo, BoFi Bank, and Opus Bank.
- $5 Referral Per Sign-up.You can refer friends and earn money by doing so. This can help cover the monthly fee Digit charges.
- Simplified Goal-setting. Digit makes it easy to set and stick to your financial goals with automated micro-saving.
- Overdraft Protection. One key feature is the overdraft guarantee, which promises that an overdraft is unlikely, but if one were to occur you would be reimbursed two times the overdraft fee.
- Free, Unlimited Withdrawals. You can move money from your Digit account to your checking account at any time, free of charge.
- $5 Monthly Fee. Many feel that the monthly fee is too high just to use the app to save money easier.
- Doesn’t Round Up Debit Card Purchases. Unlike some services, Digit does not round up any change from debit card purchases to add to your Digit account. Some customers may wish to round up the extra change in order to further add to their savings, however, with Digit this is not an option.
- Digit Only Links One Checking Account. This can be an issue for those who have multiple bank accounts and want to use the extra money in all of them to save.
- Little Transparency When it Comes to the Algorithms. Digit is not very straightforward when it comes to disclosing how the algorithm helps you save. Some users report that they would like more information on how Digit determines what to take from a checking account.
- Minimal Interest on Savings. The app only offers a savings bonus of 0.1%, which is fairly low compared to other types of savings plans.
- Not Good for Saving for the Long-term. Because of the minimal amounts put away each month, the service may not be best for saving for something big like purchasing a home or education.
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 more quickly reach a savings goal.
Perhaps you have debt from credit cards, loans, or other debt and want to work on it down? By setting a goal and using Digit to save, you can be well on your way to paying off your debts.
If you are using Digit to save up for a large purchase, such as that of a home or education, however, the app may not be the best option out there. Due to the low interest that is accrued in the form of a bonus, and the fact that the app only takes a minimal amount each month (unless you have an unusually high balance in your checking account with plenty of money left over).
The $5 fee which is charged monthly should also be taken into account. If your checking account balance usually stays fairly low, you likely wouldn’t have much transferred to Digit. This might make the fee simply not worth the small amount you will save.
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 account and wished to receive their balance in the form of a check reported that the company was slow in getting it to them.
Some members report that the $5 monthly fee was not worth what the app offered. They claim that there are better money savings apps on the market that cost less.
There were also good reviews about the app on other sites, however. The average review rating was around 4 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 Review: Is Digit Worth It?
As an FDIC insured savings app, Digit offers a good way to manage your money with automated micro-savings. Using the money savings app can help you better reach a financial goal. 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.
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. You can save with Digit for many different things. The app is a good way to start saving for the future. You can use it to pay off debt, put money towards an emergency fund, or fund short term goals.