7 Things To Know About Digit Savings

in Reviews & Random by Lacey Langford, AFC®

7 Things To Know About Digit Savings

People often tell me they’re unable to save money for emergencies or to buy things they want. Of course, I understand, saving money isn’t much fun and can be a source of frustration. One rule of thumb is to have at least $1,000 saved for emergencies. Many people don’t have at least that amount set aside.  So when I heard about Digit, I thought it might be a great new way to save money. For 45 days I’ve been trying it out to learn how and if it works and these are the 7 things to know about Digit savings. Then find out how much money I’ve saved in the month and a half.

1.  It’s A Quick Set-Up

Setting up an account takes no time, and once you completed that, you’re ready to go. There’s no remembering to move money or trying to calculate how much money you can spare to put away. Digit does all the work, they analyze your spending and income, then use that information decided when and how much to save. Super quick and easy.

2. They Won’t Overdraw Your Account

I have to admit—I was a little uneasy about linking Digit to my checking account. I like to think I’m tech savvy (not), but, I have no idea how the “analyzing” of my accounts works. And so, I worried they might withdraw too much money, and there won’t be enough cash to cover bills. Well, they’ve thought of our concerns and have offered a little insurance policy to guarantee they won’t overdraw your account. If they do, they will pay the fees up to, two times. digit

3. Commands To Give You Control

Another area that made me uneasy about creating a Digit account was not being in control of the account. Once your account is set-up, they’ll text you commands you can reply with such as “save” or “pause” to tell Digit to save more money or pause your savings for the time being. Also, they text updates based on the frequency you selected to receive them. I get mine weekly, and that is working about well thus far. I can always go to the app to find out my current balance.

4. The Account Earns Money

My Digit account doesn’t earn interest like a checking account, but they do give you a “Savings Bonus” after three months. It’s five cents for every $100 in your account.

5. It Doesn’t Have To Be Your Only Savings

We have set savings we do each month and have continued with that plan during the past 45 days. Digit is somehow accounting for our other savings while it’s calculating how we can additionally save. I love it. We’re saving, even more, each month without any discomfort in our spending or savings!

6. You Can Get The Money When You Want

Any day or time, you can withdraw your money. Digit has a “withdraw” command you text, to let them know you want your money. Then they’ll move the money into your checking account.

7. They’re Insured

Just like your checking account at your bank (or should be), your Digit savings is FDIC insured for up to $250,000. Now that you’ve heard the things I think you should know about Digit, here’s how much I’ve saved in 45 days, $309.41. That’s a good chunk of change to have put aside in a month and a half. All started by spending about 10 minutes setting it up. It’s a great way to build an emergency fund or to save for a trip or something else you want. I’ve enjoyed watching it grow and plan on keeping the account open.