I Saved $1,191.90 Automagically with Digit in Just 5 Months–My Digit Review

 

Digit (digit.co) is a service that helps you automate and separate your savings (you guys know this is right in my wheelhouse).

Digit connects to your checking account, automatically and algorithmically withdraws small amounts every few days (depending on your balance and spending habits), and deposits the funds into a separate, but non-interest bearing savings account.

In the first five months of using this service, Digit has made 48 transfers and I’ve saved $1,191.90.

Why Would You Do This?

  • Because saving money is important.
  • Because you want to kick-start an emergency fund, vacation fund, Christmas gift fund, or whatever.
  • Because you’re having trouble making progress with your current savings methods (manual transfers, waiting until the end of the month, etc.).
  • Because you care about results more than interest rates at this time. Although Digit does pay a 1% annual bonus (paid out every three months) on your balance.
  • Because automating and separating your savings works! And your boy PT preaches it regularly.

Digit Dashboard

What is Digit?

Digit is an automated money-saving app. It’s designed for people who aren’t natural savers, so they can save money passively. Digit launched in 2014 and has quickly grown to be one of the more popular personal finance apps on the market. This micro-savings app can help people achieve financial goals while running quietly in the background of their financial life.

How Does Digit Really Work?

When you connect Digit to your checking account, it starts analyzing your balance and spending over time. After a few days, Digit will transfer a small amount from your checking account into your Digit account.

“In my case, I opened my Digit account on January 15th and my first transfer ($14) happened on January 22nd. Over the course of five months, I’ve averaged a $25 transfer every 2.62 days.”

Digit uses an algorithm to determine how much is safe to transfer out of your checking account. From my experience, it starts slow and small and as it gets more comfortable with your spending habits it starts to ramp things up.

You have full control over Digit at all times. You can tell it to pause, save, withdraw (from your Digit account) at any time.

digit dashboard and messaging

Digit uses your phone’s messaging to inform you of the progress and to allow you to control the account. Digit now has both an iPhone and Android app.

You still have access to a browser-based dashboard where you can pause saving, close your account, or change your connected bank accounts.

Is Digit safe?

Security is important to Digit. They use the latest security measures to ensure you are protected. All of your personal information is anonymized and encrypted. Consumers can relax, knowing that Digit goes out of their way to protect users.

Your money is safe using Digit too. All funds secured within Digit are FDIC insured up to $250,000. Linking your financial accounts to an app can be a scary thought. Digit works hard to ensure that both your identity and your money are protected.

Is Digit legit?

Digit is legit. They keep your money and personal info safe and offer a valuable service that will benefit many people. It’s a great option for people who have a hard time saving money. There is a $5 monthly fee attached to using Digit so be sure to weight if the investment is worth using their service to save money. If you need to help or are just too busy to do it yourself, Digit could be a wise choice.

Using Digit isn’t going to make you rich, but it can help you develop healthy saving habits while settings aside hundreds, if not thousands. You could use these funds to create an emergency fund or save towards another financial goal. If you’re already in control of your finances and regularly save money, Digit may not be a good fit. But if you have consistent spending habits, Digit will find extra money and set it aside automatically. You’ll be on your way with your savings thanks to Digit.

Can You Trust Digit?

I haven’t experienced any issues. More importantly, the bank account Digit uses to hold your savings is FDIC insured up to a balance of $250,000.

If Digit overdrafts your checking account, they will pay the fee.

How Do You Get Started?

To get started, head to Digit.co and sign up. You’ll need to connect your current checking account and give Digit your phone number and email address. Get started and let me know what you think in the comments below.

Note: After the first 30 days, Digit has a $5 monthly fee and they pay a 1% annual bonus out every 3 months. Keep $6,040 in the account and the bonus negates the monthly fee.

I Saved $1,191.90 Automagically with Digit in Just 5 Months--My Digit Review

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About Philip Taylor, CPA

Philip Taylor, aka "PT", is a CPA, blogger, podcaster, husband, and father of three. PT is also the founder and CEO of the personal finance industry conference and trade show, FinCon. He created this website back in 2007 to share his advice on money, hold himself accountable (while paying off over $75k in debt), and to meet others passionate about moving toward financial independence. He uses Personal Capital to track his wealth. All the content on this blog is original and created or edited by PT.