Digit Review: A Super Easy Way to Build Your Savings Account

Digit review

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.

Image credit: Hello Digit, Inc.

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.

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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.

Image credit: Hello Digit, Inc.

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.

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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.

Image credit: Hello Digit, Inc.

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.

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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 tweets at the handle @hellodigit. Check out the Digit Facebook page here.

Digit is located at 235 Montgomery Street, Suite 650, San Francisco, CA 94104.

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