Digit Savings – Review

What is Digit Savings?

Digit is a money saving app.

It has been on my to-do-list to give Digit a try for a long time and I finally decided to give it a try.

 

How to sign up for Digit Savings?

You sign up with Digit with your name, email, cell phone number, and link your bank checking account to Digit.

It took me two minutes to sign up. I mean SERIOUSLY! You can’ t beat that level of simplicity!

Honestly, it was as simple as signing up for a newsletter subscription.

The Digit website is plain vanilla bare bones – no bells and whistles – and is super easy to sign up and use.

 

How Does Digit Work?

Once you sign up and connect your checking account to Digit, Digit uses a proprietary algorithm to perform cash flow analysis.

If it determines there is idle cash that can saved, it will move a small amount of cash (usually between $5 – $50)  from your checking account to your Digit account.

You will see Digit saving money 2 to 3 times per week from your checking account to your Digit Account.

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Does Digit Offer Overdraft Protection?

Digit is confident about their algorithm.

They offer to pay for overdraft fees two times per year per customer if they end up over drafting your checking account.

That is an excellent way of backing their claim or confidence on their cash flow algorithm.

 

Is Digit FDIC Insured?

Yes, your Digit account is FDIC insured.

Here is an extract from Digit website – “Digit uses state-of-the-art security measures. Your personal information is anonymized, encrypted and securely stored. All funds held within Digit are FDIC insured up to a balance of $250,000.”

 

Does Digit have any fees?

100% free. No fees or hassles.

 

Digit Commands

Actually, you don’t even need to download the app.

When you sign up with Digit you get a text message from Digit.

Save the contact information when you get the text message.

You can manage your Digit account just via text.

COMMANDS – prints the list of supported commands

SAVINGS – Digit Savings Account Balance

CHECKING – Digit will tell you the current balance on your bank checking account

RECENT – most recent transactions that occurred on your checking account

SAVE – manually move money from your checking account to your Digit account. For example “SAVE 5” would move $5 from your checking account to your Digit Savings.

WITHDRAW – withdraw money from your Digit Savings to your bank checking account. For example “WITHDRAW 10” would move $10 from Digit Savings to your checking account.

PAUSE – pause the automatic Digit Savings. You will get text messages back from Digit.

Basically, you Digit Savings account is managed via text messages.

It if perfect for the “texting” generation.

Honestly, I fell in love with the simplicity and convenience of Digit.

Digit does have an app for iPhone and Android.

I have used the Digit iPhone App and raw text messages from my cell phone. Both worked well and I didn’t have any issues.

 

Digit Savings – Excellent Way to Build Emergency Funds

According to CNBC“one in three American families don’t have any savings, including 10% of those who earn more than $100,000 a year, according to a survey of 7,845 people by the Pew Charitable Trusts.

A medical emergency or a job loss could push many households to the financial brink. When faced with financial shock, including car bills, home repairs or medical emergencies, 41% said they don’t have enough saved to pay a $2,000 bill.”

If you are struggling to save emergency funds, then Digit offers an excellent, automated way to save money without having to do anything. Just sign up and save.

 

Save More With Digit Savings

I believe Digit has a use case for almost anyone.

If you live within your means, and are a regular saver, Digit may still be able to save you money based on my observation.

Give it a try – you got nothing to lose.

I belong in this bucket – within a 2 week time frame, Digit has saved me $105.60.

Some of the savings were manual, meaning I used the “SAVE” command a few times to manually save money as I was evaluating Digit.

 

What I don’t like about Digit?

#1 Unable to link from Digit Savings to External Savings Account or Brokerage Account

You can link only one checking account to your Digit Savings.

Today Digit doaes not allow you link your Digit Savings account to external savings account or brokerage account.

What I would love to see is to be able to connect to an external Robo-Advisor accounts like Betterment or Wealthfront.

This way, whenever, I have saved a chunk of money, like for example $500 dollars, I would be able to transfer money directly into my brokerage or an interest bearing savings account rather than withdrawing the money first to my checking account and then transferring it my brokerage or savings account.

I have griped about this to Digit and they said they are looking into it – however, no commitment was made. I am going to be pushing for this feature through the personal finance blogging community.

 

#2 Savings Bonus on Digit

On the average daily balance for the past three months, Digit rewards 5 cents for every 100 dollar balance on the account.

Basically, you don’t get any interest. Consider the 5 cents per $100 average daily balance for the past three months a bonus.

 

Stretch A Dime Opinion

If I need to sum up my Digit review in a single sentence, “Saving money couldn’t be easier.”

Overall, Digit offers so much benefit, I am willing to work around the two gripes I have.

I am a fan of Digit and plan on continuing with to use it.

Wish you Happy Savings with Digit!

 

Have you used Digit? How has your experience been? What other strategies do you use for saving money? If you enjoyed reading this post, please share it on social media.

 

 

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