Saving money is tough, but user-friendly savings app Digit does the work for you.
Digit automatically saves a small amount of money from your checking account every few days. The Digit app deposits these savings into an account where they slowly add up over time. If you want your money back, you can withdraw at any time.
Check out this comprehensive Digit review to see if this financially savvy app is right for you.
Digit review: What is Digit?
It’s hard to strike a balance between spending and saving. Sometimes we forget about our savings goals altogether.
That’s where Digit comes in. It takes the work of saving money out of your hands and does it for you.
Instead of saving an arbitrary, set amount each month, Digit changes your savings to match your budget. How does it accomplish this?
Digit uses an algorithm to analyze your spending habits and record your income. By understanding your cash flow, the app finds saving opportunities and sets aside between $0.05 and $150 every two to three days. The average transfer is between $10 and $30.
Says the company, “Digit automates your savings so you don’t have to think about it or notice it happening.” It promises to set aside only money that you don’t need for your daily expenses.
How does Digit work?
Digit is a free mobile app available on Apple iOS and Android. Once you download it on your phone, link up your checking account. The company uses bank-level security to protect your information.
The app will transfer your savings into a Digit account, which is FDIC-insured for up to $250,000. Your Digit savings account has no minimum. Every year, you’ll get a return of 0.20%.
If you need to use your savings, you can transfer money back into your checking account at any time. Transfers are unlimited and don’t cost anything. You’ll just have to wait one business day for the transaction to go through.
How do you communicate with Digit?
Digit mainly communicates with you via text, but the company also recently introduced Digit for Facebook Messenger. Through text or Facebook message, Digit notifies you about savings transfers. You can also request changes in your account.
For instance, you could ask Digit to transfer more money, show your balance, or send cash back to you, among a number of other commands. You can also limit notifications so that the savings app is truly out of sight and out of mind.
When you first download the app and sign up for an account, you’ll get a text from Digit. It will ask you to add Digit to your contacts “so you’ll recognize me when I start reporting how much I’ve been saving for you.”
Depending on your settings, Digit can text you whenever it transfers money from your checking account to your Digit savings account. You can also text Digit to find more information or issue a command.
These are some of the basic commands you’ll need to use with Digit:
- Savings: for your Digit savings balance.
- Checking: for your checking account balance.
- Recent: for your recent checking account transactions.
- Minimum: to set a minimum checking balance below which Digit will stop saving. For instance, if you set a minimum of $200, then Digit will stop setting aside savings if your checking balance dips below $200.
- Save more: to request that Digit increase how much you’re saving. You can use this command up to three times.
- Save less: to request that Digit decrease how much you’re saving.
- Withdraw: to take out money from your Digit savings account and put it back in your checking account.
You can find more information on using this text service in the Digit app. For the full list of text commands, head to the Digit Help Center.
Getting started with the Digit app
To start using Digit, head to the app store on your phone. Search for Digit and start downloading.
Once you download the app, sign up for an account by entering your first and last name, email, and a password. Make sure to pick a secure password, as this app will contain your checking account and Digit savings account information.
After confirming your phone number, you’ll find your bank. Digit works with over 2,500 banks and credit unions in the U.S.
Finally, you’ll enter your checking account information and choose your settings. Once you give the app the green light, Digit will start analyzing your financial profile and setting money aside into your new savings account.
Is Digit safe to use?
According to Digit, the company uses 128-bit encryption to protect your information. The company is committed to keeping users financially safe and healthy. So far, there’s no evidence of a data breach or security concerns among Digit users.
Some reviewers have said that the app caused overdraft fees on their checking accounts. Digit offers a “no-overdraft guarantee” that will cover any overdraft fees up to two times per customer.
To protect yourself from potential overdrafting on your bank account, make sure to set a minimum in the Digit app. When you set a minimum, the app will pause its saving transfers if your checking account is running low.
Create multiple savings accounts with Goalmojis
When you sign up with Digit, most of your savings will go into one account called the Rainy Day Fund. This fund is meant to set aside money for unexpected expenses.
You can also use Digit to save for specific goals, like an upcoming vacation or your next credit card bill. To help you set specific savings goals, Digit recently introduced Goalmojis.
As the name suggests, you label a Goalmoji with an emoji on your phone. If you’re saving for a fancy pair of shoes, you could use the high heels emoji. For a vacation, use an airplane or palm tree.
You can set up a separate bucket for a specific savings goal in the app. Simply select “New Goal” or “New Bill” and label it with the emoji of your choice. You’ll also use the emoji in your texts to Digit to withdraw funds from this bucket.
In a way, the benefits of these Goalmojis are largely psychological. All of your money is still in your Digit savings account, but Goalmojis let you organize your savings and set money aside for particular goals.
How Digit uses behavioral psychology to help you save
Digit uses positive reinforcement to improve your relationship with money. The app sends supportive texts, random fun facts, and funny memes to encourage you in your savings goals. Texting Digit almost feels like texting a friend. Plus, it makes saving money a whole lot easier.
If budgeting sounds time-consuming, frustrating, or just boring, then Digit could change your perspective. The app will manage your money for you, but you’ll get the rewards of seeing your savings grow over time.
How does Digit make money?
As of April 2017, Digit costs 2.99/month. You don’t need to buy the app though, and there are no fees for saving money or transferring savings back into your checking account.
Besides the monthly fee, Digit largely makes money off of the interest accrued by your savings. It helps you set aside money and it pays itself with interest in return.
Digit is also venture-backed by a number of investors. It acquired over $22.5 million in funding in 2016.
How to close your Digit account
If you’d like to close your Digit account, you can do so on the Digit website here. When you cancel, Digit transfers any remaining funds back to your checking account within one business day.
It will store your information for 90 days. During this time, you can reactivate your account. After 90 days, you’ll have to go through a new sign-up process to create an account again.
Is Digit right for you?
Digit is geared towards tech-savvy millennials who enjoy conducting transactions through their phones. To use Digit, you’ll need to be comfortable with texting (and using emojis).
The app is best for people who have extra money that they can afford to set aside from time to time. If your checking account is hovering near zero, then it’s not worth the risk of overdraft fees.
That being said, most people will benefit from having an emergency fund. Even if you just set aside a small amount each week, you can save yourself a lot of stress the next time an unexpected expense pops up.
What Digit does really well is make its users feel good about saving. It takes the drudgery out of an otherwise boring process, plus it takes all the work out of your hands.
Instead of setting aside the same amount each month, Digit customizes your savings based on your spending habits and cash flow. In this way, Digit is one of the smartest savings strategies on the market.
How to contact Digit support
If you have questions that haven’t been answered in this Digit review, you can find more info on Digit’s FAQ page and Help Center. You can also submit a request or question online on the Digit website here.
Digit is located at 235 Montgomery Street, Suite 650, San Francisco, CA 94104.
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|Lender||Variable APR||Eligible Degrees|
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1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 6.97% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.30% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.47% – 6.30%1||Undergrad & Graduate|
|2.51% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.69% – 7.21%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|