Digit is a new company that might just revolutionize the way that people save money. They recently launched their app and it’s spreading like wildfire. But is Digit a great fit for everyone?
Let’s find out in our Digit Review.
Digit Savings – How it Works
The technology behind Digit is so smart that it scares me!
When you create a Digit account and link up your bank account Digit will take a look at your past expenses and income, determine what your future expenses and income are and then pull small amounts of money out of your bank account and into savings.
They generally pull $5-$50 every 2 to 3 days and promise to never overdraft your account. In fact they have a no overdraft guarantee.
Digit works through text commands. If you want to withdraw money out of your Digit bank account you just text Digit “withdrawal: (insert amount)” You can do the same for your account balance and recent transactions.
All of the money that Digit withdraws from your bank account is put into a FDIC insured Digit bank account.
What’s the Catch?
The catch is that you don’t earn any interest on your savings. That’s why Digit is free. They keep the interest earned on your money.
But to be fair, if you’re not saving any money then earning less than one percent interest isn’t going to make much of a difference in your financial life.
Is Digit Savings Right for Me?
I’ve got to be completely honest with you – this service scares me. I have heard nothing but great things about Digit but from personal experience I am not a big fan of having money withdrawn directly from my bank account. My automation includes one deposit into a retirement account and certain freelance payments into savings.
I’m also pretty uptight about keeping my checkbook balanced. So clearly, I’m not the target market for Digit. I already have a pretty good savings habit. If you’re like me then Digit might not be right for you either.
However, if you have trouble saving money and are looking for an easy way to save Digit could be the perfect solution.
They’ll only pull small amounts of money out of your bank account based on your current income and expense pattern. And when you let those small amounts add up they can become something huge over time!
To get started with Digit you’ll need to join the waiting list or get an invite from a current user. After that you just link up your bank accounts, verify your phone number and they’ll do the rest of the work for you – never taking large sums out of your bank account, only small amounts that you won’t miss!
What do you think? Are you brave enough to try Digit?