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

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

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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.

Interested in refinancing student loans?

Here are the top 7 lenders of 2019!
LenderVariable APREligible Degrees 
Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.

Earnest Disclosures

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 3.45% APR (with Auto Pay) to 6.99% APR (with Auto Pay). Variable rate loan rates range from 1.81% APR (with Auto Pay) to 6.49% 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 November 6, 2019, 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 11/06/2019. 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 hello@earnest.com, or call 888-601-2801 for more information on our student 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 SoFi.

SoFi Disclosures

  1. Student loan Refinance: Fixed rates from 3.46% APR (with AutoPay) to 7.61% APR (without AutoPay). Variable rates currently from 2.31% APR (with AutoPay) to 7.61% (without AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.31% APR assumes current 1 month LIBOR rate of 2.31% plus 0.75% margin minus 0.25% for AutoPay. If approved for a loan, the fixed or variable interest rate offered will depend on your credit history and the term of the loan and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

3 Important Disclosures for Laurel Road.

Laurel Road Disclosures

Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. Mortgage lending is not offered in Puerto Rico. All loans are provided by KeyBank National Association.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.

ANNUAL PERCENTAGE RATE (“APR”)
This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

FEE INFORMATION

There are no origination fees or prepayment penalties associated with the loan. Lender may assess a late fee if any part of a payment is not received within 15 days of the payment due date. Any late fee assessed shall not exceed 5% of the late payment or $28, whichever is less. A borrower may be charged $20 for any payment (including a check or an electronic payment) that is returned unpaid due to non-sufficient funds (NSF) or a closed account.

LOAN AMOUNT

For bachelor’s degrees and higher, up to 100% of outstanding private and federal student loans (minimum $5,000) are eligible for refinancing. If you are refinancing greater than $300,000 in student loan debt, Lender may refinance the loans into 2 or more new loans.
For eligible Associates degrees in the healthcare field (see Eligibility & Eligible Loans section below), Lender will refinance up to $50,000 in loans for non-ParentPlus refinance loans. Note, parents who are refinancing loans taken out on behalf of a child who has obtained an associates degrees in an eligible healthcare field are not subject to the $50,000 loan maximum, refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for more information about refinancing ParentPlus loans.

ELIGIBILITY & ELIGIBLE LOANS

Borrower, and Co-signer if applicable, must be a U.S. Citizen or Permanent Resident with a valid I-551 card (which must show a minimum of 10 years between “Resident Since” date and “Card Expires” date or has no expiration date); state that they are of at least borrowing age in the state of residence at the time of application; and meet Lender underwriting criteria (including, for example, employment, debt-to-income, disposable income, and credit history requirements).

Graduates may refinance any unsubsidized or subsidized Federal or private student loan that was used exclusively for qualified higher education expenses (as defined in 26 USC Section 221) at an accredited U.S. undergraduate or graduate school. Any federal loans refinanced with Lender are private loans and do not have the same repayment options that federal loan program offers such as Income Based Repayment or Income Contingent Repayment.

All loans must be in grace or repayment status and cannot be in default. Borrower must have graduated or be enrolled in good standing in the final term preceding graduation from an accredited Title IV U.S. school and must be employed, or have an eligible offer of employment. Parents looking to refinance loans taken out on behalf of a child should refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for applicable terms and conditions.

For Associates Degrees: Only associates degrees earned in one of the following are eligible for refinancing: Cardiovascular Technologist (CVT); Dental Hygiene; Diagnostic Medical Sonography; EMT/Paramedics; Nuclear Technician; Nursing; Occupational Therapy Assistant; Pharmacy Technician; Physical Therapy Assistant; Radiation Therapy; Radiologic/MRI Technologist; Respiratory Therapy; or Surgical Technologist. To refinance an Associates degree, a borrower must also either be currently enrolled and in the final term of an associate degree program at a Title IV eligible school with an offer of employment in the same field in which they will receive an eligible associate degree OR have graduated from a school that is Title IV eligible with an eligible associate and have been employed, for a minimum of 12 months, in the same field of study of the associate degree earned.

INTEREST RATES

The interest rate you are offered will depend on your credit profile, income, and total debt payments as well as your choice of fixed or variable and choice of term. For applicants who are currently medical or dental residents, your rate offer may also vary depending on whether you have secured employment for after residency.

DISBURSEMENT OPTIONS

The repayment of any refinanced student loan will commence (1) immediately after disbursement by us, or (2) after any grace or in-school deferment period, existing prior to refinancing and/or consolidation with us, has expired.

POSTPONING OR REDUCING PAYMENTS

After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship.

We may agree under certain circumstances to allow a borrower to make $100/month payments for a period of time immediately after loan disbursement if the borrower is employed full-time as an intern, resident, or similar postgraduate trainee at the time of loan disbursement. These payments may not be enough to cover all of the interest that accrues on the loan. Unpaid accrued interest will be added to your loan and monthly payments of principal and interest will begin when the post-graduate training program ends.

We may agree under certain circumstances to allow postponement (deferral) of monthly payments of principal and interest for a period of time immediately following loan disbursement (not to exceed 6 months after the borrower’s graduation with an eligible degree), if the borrower is an eligible student in the borrower’s final term at the time of loan disbursement or graduated less than 6 months before loan disbursement, and has accepted an offer of (or has already begun) full-time employment.

If Lender agrees (in its sole discretion) to postpone or reduce any monthly payment(s) for a period of time, interest on the loan will continue to accrue for each day principal is owed. Although the borrower might not be required to make payments during such a period, the borrower may continue to make payments during such a period. Making payments, or paying some of the interest, will reduce the total amount that will be required to be paid over the life of the loan. Interest not paid during any period when Lender has agreed to postpone or reduce any monthly payment will be added to the principal balance through capitalization (compounding) at the end of such a period, one month before the borrower is required to resume making regular monthly payments.

KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.

This information is current as of November 8, 2019 and is subject to change.


4 Important Disclosures for Splash Financial.

Splash Financial Disclosures

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers.


5 Important Disclosures for CommonBond.

CommonBond Disclosures

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 1.9299999999999997% effective October 10, 2019.


6 Important Disclosures for LendKey.

LendKey Disclosures

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.

Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of  5 years and is reserved for applicants with FICO scores of at least 810.

As of 11/07/2019 student loan refinancing rates range from 1.90% to 8.65% Variable APR with AutoPay and 3.49% to 7.75% Fixed APR with AutoPay.

 


7 Important Disclosures for College Ave.

College Ave Disclosures

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

1College Ave Refi Education loans are not currently available to residents of Maine.

2All rates shown include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.

3$5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees.

4This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.

Information advertised valid as of 09/23/2019. Variable interest rates may increase after consummation.

1.81% – 6.49%1Undergrad
& Graduate

Visit Earnest

2.31% – 7.36%2Undergrad
& Graduate

Visit SoFi

1.99% – 6.65%3Undergrad
& Graduate

Visit Laurel Road

2.43% – 7.60%4Undergrad
& Graduate

Visit Splash

2.02% – 6.30%5Undergrad
& Graduate

Visit CommonBond

1.90% – 8.65%6Undergrad
& Graduate

Visit Lendkey

2.74% – 6.24%7Undergrad
& Graduate

Visit College Ave

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

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