Digit Review: How I’ve Effortlessly Saved $837.49

If you have ever tried to start a new savings habit, you know it can feel a lot like a new diet. It goes well in the beginning, but there are often surprises that can derail your progress.

Boozy weekend brunches. New running shoes. Last minute concert tickets.

Before you know it, the “miscellaneous” line in your budget has ballooned out of control. Instead of feeling guilty, you insist you work hard and “deserve” these splurges.

That’s what I have told myself, anyway.

But the fact remains—you have missed another month’s savings goals.

When extra money lingers in your account, it’s way too tempting to spend it. This is why savings automation can be so powerful.

Disclosure: This post may contain affiliate links.

What is Digit?

Digit is a money saving app backed by Google’s venture arm.

Digit helps you save effortlessly through the power of automation.

When I first heard about Digit, I was hesitant to sign up. I’m pretty traditional when it comes to saving and budgeting. This typically means steering clear of the latest money management technology. However, I finally signed up in April. And since then, I have effortlessly saved $837.49!

How Digit Works

Getting started with Digit is pretty simple:

Sign up in minutes

Start by visiting Digit’s website and entering your name, email address, and cell phone number. They will confirm your cell phone number to use with their SMS account management (more on that below!)

Connect your checking account

Automating your savings with Digit can begin once you have connected your checking account. This gives Digit the ability to analyze your cash flow. From here, the software determines how much can safely be set aside.

If you’re concerned about security, you can rest assured knowing Digit doesn’t store your bank login. All of your information is anonymized and encrypted. Also, your money is FDIC insured up to a balance of $250,000.

Digit saves a little every 2-3 days

Every few days Digit automatically transfers ($5-50) into a separate account. This is based upon what you can afford. They even offer a no-overdraft guarantee.

“It can find an amount that won’t put you in a bad place, and it blends in with your traditional spending, so you won’t even feel the money’s missing,” Digit CEO Ethan Bloch explains.

Easily access your money

When you are ready to access your savings, Digit can transfer the money by the following business day. This is initiated through text message!

The Perks of Digit

Free My favorite price! There are absolutely no fees to use Digit. There is no need to worry about too many transfers or account minimums.

SMS account management Digit has a basic desktop dashboard, but otherwise, it’s basically app-less. It feels weird at first, but their simple functionality grows on you quickly.

Digit Dashboard Online

 

Digit manages your account through daily SMS notifications. There are only eight commands, and this keeps things simple:

  1. savings – view your savings balance
  2. checking – view your checking balance
  3. recent – view your recent transactions
  4. withdraw – make a withdrawal from your digit savings
  5. save – move money into your digit savings balance
  6. pause – pause saving
  7. notifications – adjust balance updates
  8. commands – view all possible commands

Digit SMS CommandsEasy withdrawal – You know how most banks take a few days to transfer funds? That’s not the case with Digit. Once you have requested a withdrawal, you will have access to your money on the following business day.

Customer service – I’ve read reports about their support being efficient and helpful. They can be reached at (888) 322-3103 or help@digit.co.

Referral bonus – You know what’s even better than saving with Digit? Earning $5 for each friend you refer.

The Downsides of Digit

Minimal interest Digit’s lack of interest is kind of a drag. Instead of interest, they offer Savings Bonuses (.5 for every $100, every three months = 0.05% return). I get around that by regularly transferring my savings into a high-interest account. Basically, I’m using Digit to identify “extra” money in my checking account, automatically set it aside, and then put it to better use.

Random savings algorithm I have no idea how their algorithm determines how much I can save every few days. If not having 100% control over your money gives you anxiety, you may not like this. Obsessive budgeters may find the random transfers annoying. However, it’s comforting to know you can easily access the money within one business day.

Limited website functionality – Don’t dig managing your Digit savings account through SMS? You’re out of luck. The website is mobile-friendly, but it’s just a basic snapshot of your account information.

The Verdict

Digit has won me over as a tactic for boosting savings automatically. Earning no interest isn’t ideal, but their fast transfers and unlimited withdrawals make it easy to work around. Overall, it’s a handy tool that I’ll continue to use.

Readers: Have you tried Digit? Do you recommend other savings apps? 

Share:

Discussions — 25 Responses

  • Brian @ Debt Discipline August 22, 2016 on 7:16 am

    I just started using Digit last month and love it! We have saved over $400 so far. Such a great tool. The daily text messages are great too, good reminders to be mindful of your money each and everyday.

    Reply
    • Kate Dore Brian @ Debt Discipline August 23, 2016 on 7:40 pm

      Wow, that’s great Brian! I really dig the daily text messages, too. It saves me from logging into my checking account.

      Reply
  • Holly Johnson August 22, 2016 on 7:27 am

    I haven’t tried Digit before. Maybe one day!

    Reply
    • Kate Dore Holly Johnson August 23, 2016 on 7:40 pm

      It’s pretty sweet!

      Reply
  • Stefanie O'Connell August 22, 2016 on 8:32 am

    I love Digit, but I have to admit that I wind up having to transfer the savings back into checking at the end of each month because it doesn’t sense how great my start of the month expenses are. I’m sure there’s a way I can input that, maybe I should look into it 😉

    Reply
    • Kate Dore Stefanie O'Connell August 23, 2016 on 7:39 pm

      Great point, Stefanie. I haven’t found a workaround for that.

      Reply
  • Tonya@Budget and the Beach August 22, 2016 on 8:34 am

    I love Digit! I guess that’s all I can say about it!

    Reply
    • Kate Dore Tonya@Budget and the Beach August 23, 2016 on 7:38 pm

      Same here, Tonya! Simple and efficient.

      Reply
  • Joe August 22, 2016 on 1:34 pm

    Digit is an awesome way to save. I wish they’d pay higher interest, though.

    Reply
    • Kate Dore Joe August 23, 2016 on 7:37 pm

      Me too, Joe! For now, I’ll just keep transferring my cash into a high-interest online savings account.

      Reply
  • Dollar Engineer August 22, 2016 on 4:56 pm

    Nice review Kate! I haven’t used Digit yet, but if I get around to trying it out I know where to find a good refresher.

    Reply
    • Kate Dore Dollar Engineer August 23, 2016 on 7:37 pm

      Thanks, Dollar Engineer. It’s really handy!

      Reply
  • Teri@The Freshman Cook August 24, 2016 on 8:33 am

    Great article, and it sounds interesting! I am going to have to check it out some more. Thanks!

    Reply
    • Kate Dore Teri@The Freshman Cook August 30, 2016 on 11:58 am

      Thanks, Teri. Let me know if you decide to give it a try!

      Reply
  • Finance Solver August 28, 2016 on 8:43 am

    I’ve heard of Digit but never dug deep enough to have an overview of the app, thanks for walking us through it! It sounds like a great app to keep track and making sure to save.

    Reply
    • Kate Dore Finance Solver August 30, 2016 on 11:57 am

      Digit rocks! Let me know what you think, Finance Solver!

      Reply
  • The Financial Panther August 28, 2016 on 5:03 pm

    I’m a huge fan of Digit! Great review. I’ve saved over $4,000 in the past year, without even noticing it.

    If you need another app to help you save automatically, you should definitely check out Qapital. You can set it up to round up all your transactions, and save all your spare change. Another easy way to build up some savings without noticing it.

    Reply
    • Kate Dore The Financial Panther August 30, 2016 on 11:56 am

      Wow, $4,000 is really impressive. I’ll have to check out Qapital. Thanks for the tip!

      Reply
    • Designing A Frugal Life The Financial Panther September 12, 2016 on 3:32 pm

      Thanks for the tip! Adding Qapital to my ‘look into’ list.

      Reply
  • Michael August 29, 2016 on 11:51 am

    Hi Kate,

    This is my first visit t your blog.

    Nice review. I love the automatic saving aspect.

    The main drawback I see is this – you will need to withdraw your savings from Digit and then transfer it to your brokerage for investing.

    It would be nice if Digit allows customers to directly link their investment accounts so that one could transfer their savings and get their savings invested.

    –Michael

    Reply
    • Kate Dore Michael August 30, 2016 on 11:25 am

      Thanks for stopping by, Michael. And I agree with your suggestion! It would be amazing if there was a way to transfer savings automatically once it reaches a certain point.

      Reply
  • Designing A Frugal Life September 12, 2016 on 3:24 pm

    Thanks for sharing Kate! I’ve seen Digit mentioned a few times recently and have been meaning to check it out. Very helpful review – maybe I’ll give it a try : )

    Reply
    • Kate Dore Designing A Frugal Life September 17, 2016 on 1:18 pm

      Awesome! I’ll look forward to hearing what you think.

      Reply
  • Damian September 18, 2016 on 6:34 pm

    How do they make money with no fees? Investing/spending your deposits to get higher returns?

    Reply
  • Big Saver September 18, 2016 on 6:46 pm

    This is probably a topic for another post, but what high interest savings accounts are you using?

    Seems like everything is petty paltry right now.

    Reply