Saving money can be tough especially when there are so many things to save for: emergency fund, retirement, vacation, etc. Deciding when to set money aside and how much can be difficult and vary month to month.
Well, there is an app for that!
Digit is a money saving app that sets aside money from your account into a “rainy day fund”. When you link your bank account, Digit analyzes your spending patterns to identify when you regularly receive income and when you usually pay bills. Then, it pulls out money into a separate savings regularly.
But what if I don’t have enough money or money is a bit tight this week?
No worries! Digit has a no-overdraft guarantee and will never overdraft your account. It also realizes when funds are more scarce and will opt to transfer less or not at all. For me, the transfers range from $0.30 to $40.00.
I need that money back, like now?!
Again, no worries! You can go into the app and transfer back your funds. They’ll be immediately available in your bank account. This account is also not a federally regulated savings so there is not cap on the number of times a month you can transfer from the savings to your checking (unlike those money hungry banks that charge a fee after 6 withdrawals/transfers).
Set Savings Goals
You can even setup savings goals. Select one of the standard goals or create your own. Enter the amount and date and Digit will help track your savings and motivate you to keep up the good work.
Low Balance Protection
Apart of the latest update, Digit now has a Low Balance Protection that will monitor your linked account and automatically transfer back money to it if you get below a specified amount at no cost. Even your bank doesn’t do that! Many banks charge an overdraft fee to transfer funds.
When it comes to budgeting, knowing your account balance is important. Digit will send a daily text with your current account balance and yesterdays balance. If something seems off, you can text ‘Recent’ and Digit will reply with your last 3-5 transactions. I personally love these texts and they greet you with a different greeting every day to switch things up.
They also send motivational texts when you reach saving thresholds, usually accompanied by a fun gif. I really don’t realize how much I save with this app so a text telling me I have over a $100 saved can be a positive boost to my day.
Not only does Digit help you save, it gives you savings! Every three months Digit automatically rewards you with a 1% annualized Savings Bonus. No minimums necessary.
For the app to work, you do need to link your bank account, which can be cause for hesitation. Digit uses a 128-bit bank-level security and they do not store your bank login so if they were to get breached, your bank information is not susceptible to being stolen.
Digit is also FDIC insured up to $250,000 just like any federally regulated bank. So if your money were to be stolen from Digit, not to worry, you’ll get it back.
I also did some due diligence and will randomly look to make sure the withdrawals from my account match the deposits into Digit. So far, I have not seen any discrepancies.
Why I Love It
I’ve been using Digit for nearly a year now and I really do love it. I hardly even realize money is being removed from my account and if I have a larger ticket item that I can’t exactly “afford” I check my Digit account a low and behold, there’s some extra money there just waiting to be used.
I usually like to use it for plane tickets or purchases like that but I do have friends that don’t touch it and are over $1000.00 in savings (not to shabby for not even realizing your saving).
The first 3 months are free, then there is a $2.99 month subscription fee. (But I think it is totally worth it)
So how do you save? Could an app like Digit help you meet your savings goals?