Earlier this month, I published the article 9 Actions To Take To Trick Yourself Into Saving Money. While some may find it easy to save money, I know that not everyone does.
This is where my Digit review comes in. Digit is a new service that I recently heard about from many different people, so I knew I had to look into it and give it a try. I’ve been using it for a few weeks now and already love how easy it is to use.
The Digit savings app allows you to automatically save money. In fact, Digit helped their customers saved $4,000,000 just in the month of June.
With the Digit savings app, you link up your bank account to Digit and every few days Digit looks at your income and spending habits to see how much you could possibly save. Digit then automatically moves money from your checking account to a Digit savings account.
Whenever you want and/or are ready to, you can then withdraw your money from Digit quickly and for free. This can be a great way to save money and before you know it you may have saved up enough for whatever your goal may be. Having a separate savings account for a financial goal works very well for many and this is why I like the Digit savings app so much.
Related: Yotta Savings App Review – Win up to $10 million weekly by saving in an FDIC insured account
Below are some questions you may be wondering about.
How does the Digit savings app work?
When you sign up for Digit, you automatically receive a Digit savings account. This is where the money that is transferred out of your bank account is put. It is FDIC insured up to $250,000, so you know that your money is safe.
Each time money is transferred through Digit, you will receive a text message. Each transfer averages around $18, but it could be higher or lower depending on your individual situation.
Whenever you need to, you can access Digit on your phone or online. When you are ready to transfer the money from your Digit savings account to your regular bank account, all you have to do is text Digit (you will receive a text from them when you sign up asking you to save their contact information on your phone) the word “withdraw.” You can also change your settings for your Digit account by texting the word “settings.” You can also check your balance by texting “balance,” view upcoming bills by texting “bills,” and so on.
The Digit savings app is really that easy to use!
Related tip: I recommend checking out my PrizePool review. PrizePool is a new type of savings account where you can win one of the over 15,000 cash prizes totaling $50,000 every month simply by saving your money in a savings account. One lucky winner will get the $25,000 Grand Prize out of this guaranteed PrizePool each and every month. PrizePool savings accounts are FDIC insured too.
Why is Digit great? Why did you create a Digit review?
Digit is a service that I recommend because it allows you to save money even if you have a very hard time doing so. Digit figures out exactly how much you should save based on what you are spending.
Digit has a monthly subscription cost of $2.99. There are no fees for transfers, withdrawals, their service, or anything else except for the $2.99.
Digit also ensures that they will never overdraft from your bank account. They believe in their algorithm so much that they know that they will transfer the correct amount to savings each time. If something were to happen (which is extremely unlikely), they will even pay the overdraft fee.
You can also text “minimum” to set a minimum amount of money in your checking account in case you are afraid of an overdraft occurring.
Can you turn Digit off if you need to?
One thing I wanted to make sure before I tried this service was to make sure that I could turn off the automatic transfers just in case something were to come up.
The answer is: Yes, you can turn off transfers for however amount of time that you would like.
Is the Digit savings app safe?
Since you are connecting your bank account to Digit, I’m sure you are wondering if it’s safe.
Yes, it is safe. I wouldn’t have connected my bank account to Digit unless I was 100% positive. 🙂
Digit securely stores your information so that it is anonymous and encrypted. Also, your funds are insured with the FDIC just like with a normal bank of up to $250,000.
Why is Digit so affordable?
Okay, so after hearing all of the above, I’m sure you are wondering why the Digit savings app is so low. There are so many positives of Digit – their service helps many save money each and every day, it’s easy to use, it’s free, plus much more.
How could it possibly be this affordable?
Digit is affordable because they earn interest off the money that is transferred into your Digit savings account, just like how a regular bank earns income off the money that you have in your checking and savings account. In the future, they even plan on offering a return on your savings, which will make the service even better. It does stink that you won’t earn interest, but the amount you are losing out on is so minuscule that it most likely will not matter. Plus, if it actually helps you save money, then that’s great!
How do I sign up for Digit?
Digit right now is invite only. However, I have an invite link that will allow anyone to join through my Digit review.
All you have to do is:
- Join here via my link through my Digit review.
- Enter your cell phone number. Digit’s service is great, especially since they make it so easy to work with through text messages.
- Connect an account of yours to Digit.
Digit is only available in the United States currently, but they are hoping to expand internationally soon. I will keep you updated!
What do you think of the Digit savings app? Are you interested in starting a Digit savings account? Do you have a hard time saving money on your own?
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Ali @ Anything You Want says
Interesting app. I read about another similar program recently, seems to be a new trend! I’m not sure if I would be comfortable having automatic transfers made out of my account, but if I were new to saving and had trouble with it, it might be a good way to force the behavior.
Michelle Schroeder-Gardner says
The great thing about Digit is that you can tell them exactly how much you want them to move, so it wouldn’t be too bad in that sense.
Thias @It Pays Dividends says
I’ve saved over $1,500 since February which helped make paying off our student loans a little bit faster. We worked out a system that we save with Digit during the month and then move the savings to our investments (or loans when we had them) so that we can begin gaining interest on the money. I personally love the app! It is an easy way to save a little extra money that is sitting in my checking that I don’t need for my month to month expenses.
Michelle Schroeder-Gardner says
Great job!
Luke Fitzgerald @ FinanciallyFitz says
I personally don’t use it but I love the idea. As we build more technology are we going to build it in a way that helps us or hurts us? This would be a great tool for anyone who is having trouble saving.
Michelle Schroeder-Gardner says
I agree!
Mark@BareBudgetGuy says
Nice timing, I just signed up yesterday. My bank is a smaller credit union that they didn’t have, but all I had to do was ask, and they added it for me.
Michelle Schroeder-Gardner says
Awesome!
Saving Sanely says
I love it when you can save without thinking about it! I was using a “round up the change” savings account when I built up my emergency fund. Once that was good, I just recently found an ap called Acorns that lets you invest in stocks using the same basic principle of taking a bit at a time. It allows to to invest for potential growth without spending a lot at one time!
Michelle Schroeder-Gardner says
I’ll have to look into Acorns as well. I’ve heard a lot of people talking about it.
Amy @ DebtGal says
I’ve been hearing a lot about Digit lately, but haven’t signed up. However, my husband really wants to buy a small boat in a few years. Perhaps this would be a good way to set the money aside for that…
Michelle Schroeder-Gardner says
Yes, definitely!
Meagan @ okay now breathe says
I will for sure show this to my boyfriend, because he has like the hardest time saving ever. I think the best part is that the app automatically moves the money without you even having to think about it. My boyfriend also has the hardest time remembering. Oh well. Love him anyways. Thanks for the share!
Michelle Schroeder-Gardner says
Haha my husband isn’t the greatest at saving either!
Kayla @ Femme Frugality says
I like the idea of Digit, but I’m kind of a control freak, so I probably wouldn’t like them transferring my money around for me, haha.
Michelle Schroeder-Gardner says
Haha the great thing is that you can tell them exactly how much you want to save!
Mathe says
Interesting. When is it going to be available here in the UK?
Michelle Schroeder-Gardner says
I’m not really sure if or when they will expand. I will keep this post updated though!
Thomas @ i need money ASAP! says
Love Digit. What an amazing idea for an app. Making saving easy and painless is definitely something everyone should be interested in. I hope they do well
Michelle Schroeder-Gardner says
I agree! I love how easy it is to use.
Stockbeard says
Why would people be interested in saving their money in an account that gives no interest? Isn’t that just equivalent to losing money to inflation?
Don’t get me wrong, it’s probably great for people who can’t help themselves but spend. But for people who are truly interested in FIRE, is there any benefit in this app?
Michelle Schroeder-Gardner says
I think it’s mainly for those who have a hard time saving. I have heard from many that the app has been extremely beneficial for them. Plus, if you aren’t saving much then the paltry amount you may receive in interest isn’t going to change much. Digit isn’t meant as a way to save for retirement, it’s more of a way to save for smaller goals and then you can always transfer it into the account that you want to.
Vonne says
Do let me know when Digit hit internationally. It will be very awesome.
From Singapore
Michelle Schroeder-Gardner says
Will do!
Michelle Schroeder-Gardner says
Great job!
Michelle Schroeder-Gardner says
Yeah everyone is different. I was a little nervous at first but I like it.
Jayson @ Monster Piggy Bank says
I have been a Digit user for more than 5 months. So far, I pretty like it and feels like saving has been so easier to do than ever. It let me save automatically first before I pay bills, which are also taken care of by Digit.
Michelle Schroeder-Gardner says
Awesome!
Lisa | The Money Pinch says
I recently just signed up for digit, and love it. It only takes a couple dollars out at a time, and I never notice it gone. I’m curious to see how much it could help me save since I only make minimum wage, so saving money is really hard. Even trying to save $100/mo is a real challenge.
Michelle Schroeder-Gardner says
I’m curious to know too! 🙂
Corey says
I feel like this would have been incredibly useful back in my pre-budget days when I told myself that I was responsible enough not to need a budget. But I do a zero-balance budget every month now, so I don’t want an app taking anything extra out. Digit won’t overdraft my account, but my cell phone bill certainly will if it comes out after it! Still, I’ll recommend this to some friends who have difficulty saving. Great review!
Michelle Schroeder-Gardner says
Thanks Corey!
Laura Harris says
I may have to check this out. I’m always looking for new ways to save $$$, and I’ve always liked the outcome of automatic savings. Thanks for the review!
NA says
This was hands down the worst decision I’ve made to date in 2016. Immediately caused me to overdraft my account within 3 weeks of using the service and contrary to their promise to refund any fee incured as a result of using their service — they don’t. Huge waste of time & money – don’t use it!!!
Michelle Schroeder-Gardner says
I’m so sorry. That is very odd. What happened when you contacted them?
April says
Will check it out definitely!