In this Digit review, we’ll look at how this app can help you save more money every day. It provides you an overall view of your finances in one convenient place.
Between bills, rent, and groceries, there isn’t always much left for saving and investing. That’s where Digit can help you.
How does Digit help?
Digit succeeds where many of us have failed – building your savings. Too many of us don’t have much money in our savings account, while others have none.
All you have to do is activate the app. If Digit saves you even $200 a month, that’s $2400 a year. It’s hard enough to make money, let alone save it.
Sometimes you just need a push to get started. Digit provides that push.
What is Digit?
Digit is an app that helps users save money they likely would have spent somewhere else.
Founded in 2013 by Ethan Bloch who has a single goal in mind – to automate saving money.
There are other apps that help you save, but Digit was the first, 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 easy. Just register, connect your bank accounts and set minimum saving goals.
The app communicates via text messaging which sets it apart from other savings apps.
Digit uses a complex algorithm to track and analyze your spending habits. After a few days, it assesses your spending patterns and identifies extra money that can be converted into savings.
Digit transfers money from your bank account to their savings account. It does this daily that it doesn’t impact your finances for upcoming bills.
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.
The way Digit works is different then many saving tools since they rely entirely on text messages.
For example, you text them to set savings goals, called ‘Goalmojis,’ a play on goal and emoji. Each has a specific goal, such as building an emergency fund.
In order for Digit to have full information about your daily transactions, you should use a debit card.
That way they can trace your debit card payments, which is hard with cash.
The same goes for credit cards – they won’t work with Digit because the app can’t assess whether you’re spending over or under your limits.
Since Digit is withdrawing money from your checking accounts, it’s natural to be concerned. Too much money sent to the savings account can lead to overdraft fees or checks bouncing.
Fortunately, Digit has you covered with its overdraft protection system.
It warns you if your account dips below a certain amount, prompting you to ‘pause’ the savings feature. If you do incur an overdraft, they will reimburse the 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. New users get the first 30 or 100 days free depending on the promotions available at the time.
- Multiple Access Points: Digit offers convenience, 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 with Digit
Signing up for Digit is simple:
- Go to Digit’s website or install the Digit app from your Android or iOS app store;
- 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 account/s;
- Then select the service where you wish to communicate with Digit (Default is SMS);
- Set-up a minimum saving value ($200 by default);
- Start saving!
Who is Digit for?
Digit is for those who wish to save up but have been unable to do so.
People are caught up juggling their jobs and social lives. 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 and safe?
After a quick Google search, you’ll find that the majority of users are satisfied with Digit.
Venture capital-funded 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 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 Terms 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.
- Easy Access: Digit offers a very convenient way to interact via text. It even recognizes one-word commands.
- Digit Savings Bonus: Digit 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 automatic savings give it a competitive edge over other similar apps. Once the parameters have been set, Digit saves a certain amount every day, without causing any hindrance to your daily transactions.
- Safety: Digit is safe. It encrypts your data with 256-bit encryption, at par with security levels used by the military.
- Limited Access: Currently, Digit is only a US-based service and doesn’t cater to non-US customers.
- Limited Website: 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 engaging 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.
- Not For The Long Term: While Digit saves for you in the short-run it won’t help you with your retirement fund.
- Algorithm Mystery: Digit doesn’t explain how their saving algorithm works. 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 sets aside a small amount every day, while ensuring enough is left over cover recurring expenses. After a few months or a year, you might 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 saving.
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!