Digit is a money saving aid which automatically transfers unnoticeably small amounts of cash you won’t need immediately to a separate savings account, this will make your savings automatic helping you save without having to think about. Users are sent daily and weekly balance notifications and the service is accessible for those who have not yet made the move to smartphones, with their text service.
The service is designed to make saving seamless and stress-free, to help people set extra money aside they never knew they had. By making a smart analysis of your income and regular spending habits, Digit estimates how much it can safely take out of your account and places it in a non-interest-bearing savings account.
Features and Highlights
- To use Digit, you need to connect your checking account. It works by scanning the users’ bank accounts to measure their cash flows. Then its algorithm determines how much money it can save without your noticing. The goal is to truly make your savings automatic, to hit a fine balance between deducting so little that users hardly notice the money is gone while saving enough for small amounts to start building up to larger balances. Every few days Digit will pull out a small amount of cash that it deposits into its own savings account which users can access at any time. Digit will open a savings account for you with one of its partner banks, Wells Fargo or BofI Federal Bank. It uses 128-bit bank-level security and does not store your bank login details.
- Digit does not have a mobile app or website with detailed statistics about your spending habits, where your money went, or how you could better budget for the future. Rather than overwhelming users with information on the website, Digit’s primary mode of communication with users is via SMS. It sends users daily updates via text with different pieces of information each day. Most days it provides users with the balance of their checking account, but occasionally also updates them on how much they’ve saved with Digit over the course of a week or a month.
- The company has other bills features and also a feature designed to automate savings from tax refunds. Since the company knows how much money you spend monthly on various different things, adding bills to its algorithm seems like a natural extension of what Digit is already doing. In the future, Digit or a company like Digit would be able to automate your finances so you never have to worry about missing a payment or having an overdraft fee hit your account.
If you are someone who takes an active interest in investing, this is not exactly the app you may be looking for. Interest does not accrue to the money being saved. It all about building good habits for people who tend to spend and not save. Some other interesting personal finance apps we noted include:
Acorns: a mobile application that automatically captures spare change from everyday purchases and invests in a professionally managed portfolio. Every dollar you invest is automatically diversified across 7,000 stocks and bonds to help improve your return while reducing risk.
Qapital: Qapital is a mobile based banking application that provides automated savings tools, personal banking, and related services. Choose your Goals, set up Rules to trigger deposits into your Qapital account! It’s FDIC-insured and powered by industry-leading security.
Level Money:: is a mobile application for analyzing your financial picture. It essentially replaces your bank balance with a Spendable number for the month. With this number, you’ll know how much you can comfortably spend on non-essentials, like coffee or eating out. With Level, it’s easy to achieve a balance between spending and saving.