Digit Review: The App That Saves You Money Where You Least Expect It
Whether it’s early or later in life, saving money is always a priority.
We often tend to spend money on things we don’t quite need, or spend more than necessary on others.
Between bills, rent, and the groceries, there isn’t a lot left to save for the average Joe. With expenses including morning coffees and weekly take-outs, it’s hard to keep track of any money that could have been saved.
Moreover, it is hard to identify where one can potentially save money. If you dedicate a good amount of time to the thought of saving but don’t really get anywhere with it, why not have someone else to do it for you?
Introducing Digit! The app that analyzes your financials and saves money daily so you don’t have to fret about it.
In this Digit review, we’ll look at how this app can maintain all your financials in one place by connecting to your bank accounts, providing you with an overall look at your monthly and daily finances.
How does Digit help?
Digit succeeds where many of us have failed – bolstering one’s savings. Too many of us don’t have much money in our savings account, while others have none.
You might be one of the non-savers who just never got to saving money or just couldn’t. Digit helps people like you save money without any real effort.
All you have to do is activate Digit.
If Digit can even save you $200 a month, that’s a full $2400 at the end of the year. Think of what you could do with that kind of money!
Everyone knows that it is hard to make money, let alone save it. But at times, you just need a push to help you get started. Digit provides that push so you can work to save more money and better utilize your funds.
What is Digit?
Digit is a financial aid that helps its users realize the power of micro-savings through its complex algorithm, saving you money you likely would have spent somewhere unnecessary.
Digit was founded in 2013 by Ethan Bloch with one single goal in mind – to develop a way to save money that is automatic, easy, and absolutely stress-free!
There were other saving platforms available at the time but none of them were automatic. Digit was the first, fully-automated financial saving application of its kind.
As of 2017, Digit charges a monthly fee of $2.99 with the first 30 days absolutely free.
Start using Digit
Using Digit is fairly simple and straightforward. Upon registration, users are asked to connect their bank accounts and set a minimum saving value.
The Digit app communicates via text messaging so you don’t need to worry if you do not have internet at all times.
Digit uses a complex algorithm to track and analyze your financial activity. After doing so for a few days, it accurately assesses the amount of money averaging in and out of your account.
The algorithm helps users save by identifying potential ‘gaps’ in your daily transactions that can be converted into savings.
These ‘gaps’ are turned into savings when Digit moves the money from your bank account to the Digit savings account. It does this on a daily basis such that it doesn’t hinder your daily finances in any way.
For example, if you have $500 in your account and a bill comes up for $400, Digit won’t save more than $1 at that time. But if you have that amount and no upcoming expenses, Digit is likely to move around $10 to the savings account.
At any given time, Digit won’t save more than $150 or less than $0.05, values that can be adjusted by texting Digit.
Digit separates itself from other saving platforms such that it doesn’t use online portals, relying entirely on text messages.
Digit offers a relatively faster and more convenient option, bypassing all internet requirement and accessibility restraints. All instructions are texted to Digit, asking it to ‘Save’ or ‘Withdraw.’
You can text Digit to set goals. Digit calls these ‘Goalmojis,’ a word-play on goal and emoji. You can track your progress using these Goalmojis and set goals to save specific amounts for specific purposes.
In order for Digit to have full information about your daily transactions, it is imperative that you use a debit card for all your transactions.
This is because unlike cash transactions, Digit can automatically trace your debit card payments.
Same goes for credit cards – they are incompatible with Digit because the app can’t assess whether you’re spending over or under your limits. So you’ll probably miss out on those credit card benefits.
For most people looking for a savings avenue, probably the most unsettling thing about Digit is the fact that a piece of code is handling your actual checking accounts.
Too much money sent to the savings account can lead to an overdraft or cause checks to bounce. Fortunately, Digit has you covered with its overdraft protection system.
It gives you a warning if your account dips below a certain amount, allowing you to ‘pause’ the savings feature. If happen to incur an overdraft, Digit promises to reimburse the over-drafted amount.
- Text Commands: Digit allows users to handle their savings with text messages. Simple one-word text messages like, ‘Withdraw’ and ‘Balance’ help you manage your savings.
- No Minimum Investment: Digit doesn’t dictate any minimum limits on user account balances or investments.
- Low Fees: At $2.99 per month, Digit is a relatively cheaper service as compared to other financial institutions and apps. Additionally, new users get the first 30 or 100 days free depending on the promotions available at the time.
- Multiple Access Points: Digit offers convenience and accessibility, allowing users to access the app on iOS, as well as Android devices, and is compatible with Smart and Apple watches. With no internet connection required, users can conveniently manage the app’s activities via text message.
- FDIC Insured: Users needn’t worry about the security of their funds as Digit’s savings accounts are FDIC insured for up to $250,000.
Signing up for Digit
Signing up for Digit is simple:
Clicking the blue sign-up button prompts you to enter your personal details, email, and password;
You will then be asked to connect your bank accounts;
Then select the service where you wish to communicate with Digit (Default is SMS);
Set-up a minimum saving value ($200 by default);
Who is Digit for?
Digit is for those who wish to save up but have been unable to do so.
People are so caught up juggling their jobs, social lives, and day-to-day responsibilities that saving money is just an added worry that they struggle with.
However, saving is probably the most important thing in the long-run.
With small daily savings, Digit helps you save a significant amount by the end of the month or year.
The best part? It’s all automatic!
Is Digit legit?
With a quick Google search, you’ll find that the majority of users are satisfied with Digit.
Venture capitalist-backed internet start-ups like Digit are generally expected to show results and satisfied customers. Especially if it’s backed by Google’s own venture capital firm.
This credibility speaks for itself, along with millions of customers. To date, Digit has saved over $1 billion for its customers.
A lot of people have left positive reviews on its Play Store app, along with suggestions to improve its features. Digit entertains all such suggestions and promptly replies to the reviewers.
No app is perfect and Digit is no exception to bad reviews.
For apps like Digit, certain Term and Conditions are set in place to ensure best practices. These are mostly addressed in the FAQ sections of these apps.
Users often overlook these resources and go right for the app. The bad reviews are most often the result of users ignoring the FAQs and Terms and Conditions.
Digit might need to make sure that every new customer reads up on the app and its practices so that they know what they’re getting into.
Advantages of Digit
- Ease-of-Access: Digit offers a very convenient communication process. It provides several ways of communicating and recognizes one-word commands.
- Digit Savings Bonus: Digit continually rewards its customers. Among others, one reward offers a quarterly 1% annualized savings bonus to all customers who are saving with Digit.
- Same-Day Transactions: Digit provides the option of same-day transfers to customers who have a Chase or Wells Fargo bank account.
- Customer Support: Digit boasts an incredibly responsive customer support team. They seek to resolve all issues within a 3-day period to avoid any financial hiccups.
- Automation: Digit’s fully automated features give it a competitive edge over other similar apps. Once the parameters have been set, Digit automatically saves a certain amount every day, without causing any hindrance to your daily transactions.
- Safety: Digit encrypts your data with 256-bit encryption, at par with security levels used by the military.
Disadvantages of Digit
Our Digit review wouldn't be complete without pointing out a few of it's downsides.
- Limited Availability: Currently, Digit is only a US-based service and doesn’t cater to international customers.
- Limited Website Capabilities: If you’re computer savvy, you may have an issue with Digit as there is only so much you can do on their website. Texting is the most convenient and preferred way of communicating with Digit.
- Low-Interest Payments: A large part of Digit’s financial model depends on earning money through the interest collected on your savings. You only get a small chunk of your actual interest payment.
- No Long-Term Feasibility: While Digit saves for you in the short-run, it is not feasible in the long-run as it won’t make you super-rich or help you with your retirement fund.
- Algorithm Mystery: The company has not yet released its design parameters so no one really knows how Digit’s saving algorithm works.
Digit Review Wrap Up
Probably. It’s so much easier to live in the moment, instead of coming up with long-term financial strategies.
Most of us are pretty oblivious when it comes to savings. Digit helps solve that issue.
Once the app is set up, it automatically sets aside a small amount every day, while making sure that you always have enough left over in your account to cover your recurring expenses. So after a few months or a year, you have a good amount of money saved that you didn’t even know you could save.
Savings are essential, as you never know when you might need that extra cash and Digit helps you get those savings.
So if you’re okay with the monthly fee, register on Digit and give it a try for a few months. Who knows, it might be just what you needed.
If you have already used Digit, share your experience in the comments!