Digit is a financial assistant that manages your entire budget, from checking bank accounts and depositing paychecks to tracking long-term investments. It’s the only app you need for everything related to money!
The “digit money saving app reviews” is a new app that allows users to save money on their everyday purchases. The app has been around for over a year, but recently it has seen a surge in popularity.
picture courtesy of digit.co
Digit is still very unusual in the field of personal financial tools, while not being new by technological standards. This program, which many people refer to as a “passive savings” tool, is the non-response investor’s to the current trend of automating personal finances.
Digit is an app for microsavings. Consider it an electronic piggy bank where you may put tiny amounts into a savings account. This is similar to Acorns’ “round up” strategy, but digit determines deposit amounts using a spending algorithm.
The Digit app also allows you to save money and pay off debt. To progressively pay off high-interest credit card balances, you may link Cards of credit and have money deducted automatically. You may also create a “rainy day” fund that serves as an overdraft protection.
Digit also offers Individual Retirement Accounts (IRAs). It looks to be a relatively new function, since there is little discussion about it online, but my study indicates that it is a good investment opportunity. I’ll go through it in greater detail later.
Digit, a personal financial software founded in 2012 by Ethan Bloch, a former product manager at Intuit, has stood the test of time. Since then, the firm has received $63.8 million in four fundraising rounds and now employs over 200 individuals.
This article will teach you:
Millennials are the target audience for Digit. According to a Federal Reserve survey from 2013, about 60% of millennials between the ages of eighteen and forty have saved little or nothing for retirement. When Ethan Bloch created the app, he was twenty-nine years old.
This program is also a good solution for anybody who has trouble saving money, regardless of age. The deposits are modest enough that they are nearly imperceptible, and the balances accumulate over time. This strategy works for those who refuse to spend money that isn’t immediately in front of them.
Digit can help people with outstanding credit card balances pay them off and stabilize their spending, but only if they also have the discipline to stop using those cards. Automatic withdrawals from a checking account will pay the monthly expenses if this occurs.
Digit savings should not be considered a long-term “investment” account. The depositor receives no interest on the monies placed into their accounts. They do, however, give a monthly “savings incentive” of 0.5 percent, which is greater than the national average savings rate.
Setting up for the first time is straightforward, uncomplicated, and fast. Plaid serves as a data aggregator for Digit, and data communication is frictionless. My credit union account was linked in less than a minute, and the app promptly displayed balance information.
Some may find the security mechanisms built in to be inconvenient, but they are no different from what everyone else is doing. I was instructed to confirm code confirmations through text message. Email may also be used for two-step authentication.
The message “bot” that Digit utilizes to express intent to the user was one of the ingenious inventions that struck me throughout this process. “Hello, this is Digit,” said the first message, which came from a 628 area code (San Francisco).
My new Digit-bot buddy informs me that they’ll give me savings and checking balance updates from the same phone number, and that I should add that number to my contacts. It doesn’t say how often those updates will occur, but I’m guessing they’ll be daily.
Digit was linked to my MacBook, and then I downloaded the software on my iPhone. On the PC, I used the “recommended” password, but when I linked the mobile app, I immediately regretted it. I suggest creating your own password for convenience.
The smartphone app is user-friendly and well-designed. The color design clearly distinguishes each function, and the app is fully functional, so you won’t need to go to the desktop version to make adjustments. This covers account changes, goal resets, and cancellations.
Digit’s algorithm learns your spending habits and predicts how much you may safely save each day.
This portion was straightforward yet terrifying. Setting objectives effectively tells Digit how much money you need to save. That’s fantastic. What’s not so great is that Digit never fully explains how much money they’ll take from your account. The following are the goal categories:
- Emergency Fund
- Cards of credit
- Loans for Students
- Near or Far Travel
- Invest for a Good Cause
- Spend Money on Gifts
- Make Your Own Objective
I had credit card debt, like most Americans, so I set a goal to pay it off. The software quickly established a connection with my credit card provider and notified me that an automatic payment will be made on the 29th. How much? They didn’t say anything.
I realized how to maintain a lid on Digit withdrawals after conducting some study. Use the Safe Saving Level tool to safeguard your deposit account before putting up a goal. This will set a minimum amount on your bank account that Digit is not allowed to remove.
Setting goals and saving for them sounds like a good idea, but the amount of uncertainty makes it a risky proposition. I’d suggest using Digit for a few months before establishing objectives so you can have a sense of how much time you’re spending with it.
Digit now provides a retirement option in addition to ordinary savings (with no interest). I joined up for this and now have a Roth IRA into which I may put my monthly savings. This makes Digit a better alternative for more serious investors looking for a way to profit.
The age and income levels of the user define the investment portfolios for their IRAs. Mine is mostly comprised of US and foreign stock funds, with a few bond funds thrown in for good measure. When you set up your retirement account, you have additional alternatives.
The fact that the Digit retirement plans are not entirely made up of ETFs seems to set them apart from rival applications. Individual stock investments normally have a bigger upside, but they may also result in larger losses.
Opening an IRA on top of a 401(k) or pension fund isn’t a terrible idea for individuals who already have one, especially if it’s paid with basically disposable money. Digit’s investing funds are managed by Vanguard, so it’s a rather secure bet.
It’s vital to understand that the Internal Revenue Service sets yearly contribution limits to restrict how much you can put into an IRA or Roth IRA each year. The cap for 2020 is $6000, but if you’re over fifty, you may raise it to $7000.
Digit is $5 a month for new subscribers and $2.99 for those who joined up before July 23, 2019. They provide a free thirty-day trial, and cancelling is a straightforward procedure that can be completed on the website or via the mobile app. To cancel, you do not need to phone or send an email.
There are no extra costs associated with using Digit, however there is one. The 0.5 percent savings incentive is intended to replace an interest rate, although it is simply a one-time payment rather than a compounding rate. Digit pays out less than typical savings accounts because of this discrepancy.
Another disadvantage of the savings incentive is that it is only paid on amounts that remain after the month ends. You earn no money off your savings principal that month whether you’re paying off a credit card or saving for retirement. Although this is not a charge, it does cost you money.
Competitors vs. Digit Cost
- Qapital: Offers a $3 per month basic membership that excludes expenditure analysis and investing features. You must pay $6 each month for them. If you save more than $5000 per year, the monthly fee rises to $12.
- This online banking software has no minimum deposit requirement and no monthly cost. They give an ATM card that can access cash at locations on the MoneyPass and Visa networks, as well as round-ups on debit card transactions to help grow savings.
- Acorns: An ETF investing account is $1 per month, but you may upgrade to $3 per month if you include checking (with ATM card) and retirement choices. Their family plan is $5 per month and includes “Early” accounts for kids.
Overall, I think Digit is an excellent personal financial software, however it does have some flaws. So far, based on my experience and what I’ve read about it, the app gets my recommendation. The different grounds for that suggestion are listed below.
Advantages, Benefits, and Features
Using the Digit app has several distinct advantages. We’ve previously addressed one of them, the savings bonuses. I’ve put it in the benefits section since I feel it is beneficial to folks who would not otherwise create a standard savings account.
Another advantage is Digit’s approach to overdrafts. They provide overdraft protection to keep your deposit account from going negative, as well as overdraft reimbursement up to twice a year if they overspend your account and charge you a fee.
Because this is a mobile app, email assistance is available 24 hours a day, 7 days a week. Obviously, your access is the same. At any moment throughout the day, you may check your accounts, make modifications, or add objectives. Even on weekends and holidays, balances are updated in real time.
I appreciate the idea of deposits growing in size, but it may also be risky. I’m included it in the pros section since I feel the Digit algorithm can help you establish a sizable savings account. Because there’s a risk of over-extending specific users, you’ll notice it in the “con” section below.
Cons and Possible Drawbacks
After studying and utilizing this program, there are very few drawbacks that I can find.
Acorns and Chime, with their “round-up” capabilities, provide a more manageable approach to save money. Digit promotes its approach as a “invisible” way to save money, but the monthly contributions may soon pile up. This might be a problem.
The greatest disadvantage I perceive is unpredictability. Digit’s projections of deposit quantities are too hazy, and it should have a better mechanism for limiting them. The “Safe Saving” levels are helpful, but they don’t provide the user any actual safety. Digit could be able to handle too much.
On the App Store, Digit App has a 4.7-star rating, while on Google Play, it has a 4.6-star rating. They have a “B” rating with the Better Business Bureau, but Digit is not “accredited” with them (which is a paid status), which might explain the poor grade.
On the BBB website, there are just twenty-nine reviews. There are almost one million installations on Google Play. Over 200,000 reviews have been collected on the App Store. The sample size is crucial. I’m more likely to trust user evaluations of mobile apps than the Better Business Bureau.
Customer assistance is only available through email or in-app. People who want phone help will grumble about this. Fintech applications often use this method. Because of this, Digit does not seem to have received an excessive number of complaints. The most of the problems I’m reading about involve user mistake.
Overall, I’m impressed with how well this software is received. I want to use it in the future and take advantage of their retirement option. I have something similar with Acorns, but I am certain that this one will build up quicker.
The “Digit Review” is a new app that has been released on the Google Play Store. The app allows users to track their spending and savings. This review will cover everything you need to know about the app, including how it makes money. Reference: how does digit app make money.
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