Truly Automatic Savings!
What would you think if I told you there is an app that could figure out the right amount of money to save for you each month without you having to do math or try to maneuver around a fluctuating income?
Would you be interested? Or, would you think I was crazy?
Well, I am crazy but the app is real.
Welcome to Digit. The first microsavings app that makes saving TRULY automatic.
What is a microsavings you ask?
It’s a method where small amounts of money are saved up over time. Most people don’t have a lot of money left in their budget to put away a substantial amount of money each month. A microsavings method stashes away amounts of $1 to $50, or more, over a period of time. A microsavings can get the savings ball rolling for most people.
Digit does it for free and automatically!
In this Digit review, I tell you all about this amazing money app, who it’s for, and how you could use it to save money.
DISCLAIMER: I’m not getting paid to do this review. I love Digit and I think you would find it helpful, especially if you want to save more money. I am, however, using an affiliate link. If you use the links in this article and sign up for Digit, I will get a $5 referral reward. You can take advantage of this same referral reward when you sign up and share it with your friends and family.
What is Digit.co
Introduced to the world on February 9, 2015 Digit was the first of its kind. It was created to make saving money truly automatic.
Now known as a “microsavings” app, Digit withdraws small amounts of money from your checking account and saves it into an FDIC insured bank account.
What makes Digit truly automatic is how it uses a proprietary algorithm that learns your spending habits and bill-paying rhythms to decide how much to save from your checking account without you missing the money or incurring overdraft fees.
In fact, Digit guarantees it won’t cause overdrafts. But, in the unlikely event that an overdraft happens, Digit works quickly to reverse the withdrawal amount and will refund you any overdraft fees incurred as a result.
What makes this app one of my favorites is how much money it can save for you without you realizing it.
There’s no need to tell it how much to save or when to save, Digit does everything on its own. Of course you can set an automatic minimum, just tell Digit to stop saving once your checking account gets below a certain amount so you can keep a checking account buffer. I tell Digit to stop looking for money to save for me when my account gets below $100, that way, I know I’ll at least have that much in my account each month.
If you ever need your money back, just tell Digit how much to transfer back into your bank and it’s there in about two business days. Easy.
While Digit won’t make you rich, it will help you save money for short-term financial goals.
In fact, it’s a great way for you to start saving now for Christmas. Just let Digit do its thing.
If you leave the account alone, by November you may have a nice chunk of change to spend on Christmas gifts. The amount Digit saves for you will vary depending on your spending habits from that account, upcoming automatic bills, and daily account balance. But you can expect Digit to save anywhere from $1-$150 a week.
I signed up for Digit in October 2015, and as of this article, it has saved away $1548. All without me noticing the money was moved from my checking.
I call it savings wizardry!
How to use Digit
Once you set up Digit and link it to your most used checking account there’s nothing else to do.
Interaction with Digit is fun and easy. There are five ways to interface with Digit:
- Text message
- Facebook Message Bot
- iPhone App
- Android App
If something comes up and you need to pause savings just send Digit a message to “Pause” or “Stop” saving.
If you want to save more money, use the Android or iPhone app or send a text telling Digit how much extra to save.
Interfacing with Digit is easy and quick!
Do you want Digit to only save money if your account is above $300? Tell Digit “minimum 300.” Easy peasy. No logging into your bank account, doing math and monthly projections. Digit makes it easy to save.
The Digit Interface
When Digit first came out, the only way you could communicate with it was through charming and friendly SMS/MMS texts.
Now, Digit offers multiple interactive platforms through apps for iPhone and Android, and a bot for Facebook Messenger so no matter what kind of messaging/social media platform you use, Digit is there for you.
Here’s a list of commands you can use to interact with your account:
- “Savings” to see how much you’ve saved
- “Checking” for your bank account balance (checking only)
- “Recent” to see recent transactions in your checking account
- “Withdraw” to move money from Digit to your checking account
- “Save” to save more money into Digit
- “Pause” to pause savings money into Digit
- “Minimum” to set a minimum checking balance that Digit will not attempt to save for you (example, if you tell Digit “minimum 200,” Digit will stop saving when your checking balance goes below $200)
- “New Goal” or “Goalmoji” to create a new savings goal within Digit -FAVORITE!
- “New Bill” this one allows you to save money for a monthly bill
Who is Digit for?
Digit is for anyone with a checking account who wants to save money, and those who want a truly automatic savings plan.
Before Digit came around, “automatic” savings still required you to play an active role each month. Even though you set up an automatic savings plan with your current bank account, you still need to check it each month to make sure you have enough money in your account before the saving transaction occurs.
And, if something happens in the month where you need the extra money, you have to go into your account and pause or cancel the automatic savings. It can get frustrating because it’s not truly automatic.
I don’t know about you but when I hear something is automatic, I think I should be able to set it and forget it like Ronco.
Remember this catch phrase?
Freelancers can use Digit to find extra money to save for their business or business taxes.
High schoolers with a checking account and college students can benefit from Digit. Since funds are usually limited, it’s nice to know that Digit is looking out for money that can be saved.
Business professionals can use it to save money without having to spend the time to plan out finances.
Money app junkies will love it because it’s a charming way to save money you didn’t know you had.
How much does it cost?
Everything about Digit is free; sign up and full use.
UPDATE 4-12-17 (SEE END OF POST) Digit is no longer free.
Signing up is easy.
All you need is your name, email address, and a new secure password.
Next, give Digit your mobile number
Tell Digit the secret code they sent you and you’re in!
After that, you’ll be directed to link your favorite checking account to Digit by using your user name and password. It’s just like setting up a Mint.com account.
As soon as link Digit to your account, Digit sets up an FDIC insured savings account where it will keep your funds until you’re ready to withdraw them. Unfortunately, I was unable to find out which bank Digit uses.
After setting everything up, Digit gets to know your checking account habits and gets to work on saving you money.
Is Digit worth it?
Since its inception, Digit has grown and has so far saved over $250 million for thousands of people (per its Facebook messenger notification) and every money blog writer that I know has tried it and liked it.
Personally, I love using Digit and I’m hoping they don’t change the way they do business. Recently, Digit updated their terms and conditions and one of the conditions stated that I needed to agree to a monthly fee.
As of this writing, Digit is free to use but I think in the future, they may charge a monthly fee for use of their algorithm - similar to how Acorns and Stash charge a small monthly fee.
UPDATE 4-12-17: (SEE END OF POST) Digit is no longer free to use.
Digit is definitely worth a try. It's free and will save money around your spending and income rhythm, making it a truly automatic way to save.
The biggest problem you may face with using Digit is if you track every dollar each month. Since Digit moves money based on your balance and spending habits, it’s hard to create a budget around what Digit will save you each month. One month Digit may save $70 and another $120. But if you play more loosely with your monthly budget - and don’t track every cent - it is nice to see how much it saved for you each month without you noticing.
One last thing, if it matters to you, the money sitting in your Digit savings account will not earn interest. But earning interest is not what Digit was designed for. It’s designed for microsavings which can be used for smaller goals like Christmas or an upcoming trip.
Digit does have a savings bonus incentive if you keep the money in your account. Ever month you don’t touch your savings, Digit pays you 0.20% 1.0% annually based on your Digit balance. Other than that, Digit is not designed to build long-term wealth.
Are you ready to make savings automatic?
Although Digit won’t save you thousands of dollars or earn you interest, it will help you save for things like Christmas, an upcoming trip, or a spa day. It’s always nice to check in with Digit every few months to see how your microsavings account has grown.
So if you want help saving a little bit of money without all the hassle of managing monthly automatic savings transactions, Digit is your app.
UPDATE 4-12-17: Digit is now going to charge it's customers $2.99 a month. I just got a notification in my email about it (see below). This charge is similar to what other microsavings apps are charging.
Current users will have free access to Digit for the next 100 days. And they will be increasing the savings bonus from 0.20% to 1.0%.
I'm going to be cheap here and delete my Digit account after the 100 days. It was a wonderful run when it was free and I totally understand the need to charge for such a great app.
Share your thoughts in the comment section. 🙂
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An easy and fun way to save money for small money goals like Christmas, a trip, a spa day, or that new gazingus pin.
UPDATE: Although Digit will start charging users, they have increased their savings bonus to 1% (instead of 0.20%) for every month you don’t touch your savings.
Money saved will not earn interest. And it won’t work for people who tend to use up all the money in their checking account every month because Digit may incur overdraft fees.
UPDATE: Digit is no longer free, they will now charge new users $2.99 a month.