Digit is an app that helps you take the thinking out of saving and investing. It automates saving and investing to help you reach your goals.
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Digit is an app that helps you reach your money goals. If you’re having trouble building a habit around saving, Digit can help.
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While it doesn’t make you rich, it does help you begin saving or investing. It’s an app that focuses on micro-savings, which moves a small amount of money consistently.
The best part is that you can save or invest without logging into your online or mobile banking and transferring the money yourself.
Transferring small amounts regularly ensures that it won’t feel restrictive, and you may not even notice a difference.
How does it work?
To use Digit, you’ll need to connect your current bank account. It transfers small amounts of money from your existing bank account to your Digit account regularly.
The frequency depends on several factors. It looks at your bank account balance, upcoming income, bills, recent spending, and savings controls to figure out how much to save and when.
When it comes to saving with Digit, you can set an unlimited number of savings goals. Whether it’s a rainy day fund, grocery fund, vacation fund, paying off debt, or a specific purchase you want to make, it can help you achieve it.
Since it’s constantly assessing your bank account, it can help you avoid overdraft fees. If your account balance gets low or goes negative, it’ll instantly transfer savings to your bank.
Digit also helps you start or consistently invest. Each day, Digit can invest in your retirement or personal investments.
You won’t be investing in individual stocks. Instead, you’ll select the level of risk that you’re willing to take on, and it’ll match you with a diversified portfolio of exchange-traded funds (ETFs).
By using an algorithm to figure out how much you can save or invest without negatively impacting your life, Digit can help you achieve financial security.
If you want to pause, increase the amount, or withdraw funds, you can. At any time, you can make changes to your Digit account.
What makes Digit incredible is that it helps you gain control of your finances. You’ll become more confident and be better positioned when it comes to money.
Cost and fees
The pricing structure is simple and straightforward. Your first 30 days are free, which is great because it gives you time to try it out and see if you find value in it.
After your 30-day free trial, it’s $5 per month. For $60 a year, Digit can provide a ton of value because you won’t have to think about saving or investing.
Since Digit uses machine-learning to find the right amount for you to save and invest, it may be worth it. The small amounts every day add up to help you reach your financial goals.
Your data is safe and secure because Digit uses bank-level security. It’s secured by 256-bit encryption, which is also the same level of digital security that governments and militaries use.
Your funds are also secure because they’re deposited at one or more FDIC-insured banks, such as Chase, Wells Fargo, BBVA, Luther Burbank, Bank of America, and Axos.
FDIC insurance means that your money is protected up to $250,000 per member per bank.
Downsides of Digit
While Digit offers many benefits and features, it’s not perfect. The two main drawbacks of it are the monthly fee and the small amounts.
It’s great for getting started with saving and investing, but for long-term wealth, you’ll need to save or invest more.
You also might not want to pay a monthly fee for saving. If that’s the case, Digit isn’t for you.
It’s not built for everyone. If you want a fixed amount transferred to your savings every week or month, you can do it for free through your bank.
You can get started with Digit through the website by entering your phone number and creating a unique password. You can also download the app on the Apple App Store or Google Play Store.
Once you sign up, you’ll link your bank account by providing your login information. This allows Digit to get information about your balances and expenses, which is used to determine how much to transfer.
After linking your bank account, you can customize your goals, track your progress, and maximize Digit.
If you need to, you can also withdraw funds from your Digit account by using the app.
Digit takes the thinking out of saving and investing. It looks at your situation objectively instead of emotionally and saves a small amount over time. Small amounts are much easier than saving a lump sum. It’s an excellent way to begin building a habit around saving and investing.
Featured image courtesy of Hello Digit, Inc.
About David Em
David Em is the founder of More Money More Choices, which he launched to help you take control of your finances and build your dream life. Before More Money More Choices, David worked in leadership positions in the finance industry.