Saving money might cause you headaches and concern, but with technology that can be found on the market today, there is no reason to take advantage of apps that can help you save money without any effort at all on your part. Whether you want to save money but simply don't have the time to put it away, or if your brain simply shuts down at the mention of accounts and banks and money, then Digit might be the app you have been looking for.
Get more than just a black and white answer on if Digit is right for you and your bank account. Read our review to discover what Digit is, how it works, uncover both positives and negatives to using the service, and even get a step-by-step guide to using Digit if you are interested in saving money automatically.
What is Digit?
Digit is a small but growing company that was opened to citizens of the United States in February of 2015, and since then it has been helping adults—especially adults under thirty-five years of age—to actually save money for a rainy day. The company was formed as a response to many young adults being unable to save money, most of them reporting a savings rate of negative 2% annually in 2014, even several years after the recession.
Digit's solution is automatic savings, where the app can monitor your income and spending habits, and then make smart decisions on how much money to put away each month that, ideally, you won't even miss from your bank account. For people who find money stressful, or don't think they can save any money at all, this app can be the perfect solution to begin saving money for your next vacation or large purchase without any hassle at all.
How Digit Works
Today, big banks make their money from one of two financial groups. Either they earn income from the overdraft fees and other taxes placed on the very poor and even broke bank users, or they can receive a respectable interest from the very wealthy, which functions as a charge for managing their large amounts of wealth.
However, modern banks have almost no incentive to create innovation for the middle class, and as a result individuals who do not pay overdraft fees, but aren't massively wealthy either, typically have the very same banking experience as an individual using a bank over five hundred years ago. Digit is stepping in today to bring us some of that innovation that the industry is lacking.
To get setup, you sign up with the app, which is available on the iOS, Android, and even on browsers on a laptop. You will need your bank information handy during this process, but after that everything is simple and straightforward.
Digit will automatically check your spending habits on a daily basis, and it will move money out of your checking and into a separate savings account if you can afford the expense. This savings account is FDIC insured up to $250,000, and you can withdraw any amount of money, at any time.
The amount that is automatically withdrawn is influenced by four major factors: your total account balance, any upcoming income (paychecks or predicted income that is more irregular), upcoming bills that are noted, and traits of your recent spending history.
If you want to actively save money on occasion, putting money into your Digit account is as easy as sending a quick text message. If, over time, you find you are becoming an more active user of Digit, there are over 25 different commands you can use for the service via text message, from changing your nickname to pausing the service for a certain number of days.
What's more, Digit offers a 1% annual Savings Bonus of your total saved amount, input into your account every three months that you are a part of the service. In short, Digit will evaluate how you spend your money, and then make sure you are also saving money as well, in order to provide for your future.
Pricing
Digit offers 100 days free on their service, so you can start right away without any fees or costs up front. Take advantage of this free trial whether you want to get Digit or not, so you can be sure it is the right service for you in the long run.
Once the trial basis is up, Digit cost $2.99 each month. It is important to note that this is the only way that Digit earns revenue, and they will never sell your data, give you advertisements in the app, or otherwise push unnecessary products on you for supplemental income.
Steps to Get Started
If you want to give saving real money, without any stress or headache, a shot, then use the following steps to get started with Digit.
- Download the app.
- This app is available on Google Play, the App Store for iOS, or you can sign up on a web browser.
- Create basic account information.
- Type in your first name, last name, email address, and then choose a new password for your account.
- Be sure to choose a safe and unique password for your Digit account.
- Input your phone number.
- This app requires a good phone number because most of your communication with the app will be via text messaging for ease of use, no matter if you have internet or not.
- Input checking account information.
- This should be the account from you wish to save, and it should also include most of your spending and income habits for the best decision making by Digit for how much to withdraw.
- Start saving automatically!
Pros and Cons of Digit
Of course, like any financial app, there are both pros and cons to choosing Digit. Be sure to consider both sides, so you can make the decision that is best for you.
Pros
- Easy, automatic savings
- FDIC insured savings account, from which you can withdraw money anytime.
- Digit Savings Bonus every 3 months.
- Text Messaging to manage money.
Cons
- $2.99 monthly fee after initial 100-day free trial.
Public Perception (Other Digit Reviews)
This app is rated 4 stars on the App Store, and 4.3 stars on Google Play. Most users gave positive reviews on how easy it made saving money, though some found they were unable to connect to less widely-known banks.
Competition
Digit is not the only option out there to help with savings, so if that's your goal, you should also consider competitor apps such as Acorns and Stash Invest.
Unlike Digit, Acorns will simply round up every purchase you make to the next dollar, and move all the spare change into a savings account. This way you can be sure to save money with every card purchase, without making a dent in your spending habits.
Stash Invest works a little differently, and focuses instead on smartly investing your spare change so your money can grow. With this app, you can begin with as little as $5, and put money into industries and other things that you love and want to succeed.
Should You Get Digit?
Digit is a one-of-a-kind application that works overtime to help you save money without any extra effort from you. If this is something you are missing in your life, or if you find you have no savings account at all for a rainy day, then this is definitely the right app for you to sign up for.
