Have you ever wanted to save money, but couldn’t quite figure out a system in which to save? Have you ever created a special account to put money aside for savings, but just never got around to it? Yeah, I think that is true for lots of people. If you have been looking or ways on how to save money, this review will be very helpful for you.
Most of us have really good intentions when it comes to saving money, however, according to a survey done by Google Consumer Survey, 62% of Americans have less than $1,000 in their savings account (GoBankingRates). There is an easy way to save money and the best part, it is free.
I came across the Digit Savings app while I was researching some different apps to use for budgeting. Greg and I use pen and paper to budget because we are old fashioned, but I know lots of people that use apps to help them budget.
I ran across the Digit app and thought it would be fun to give it a try.
How to Save Money Using Digit:
What is Digit?
Digit is an app that is totally free to use. You sync it up to your bank account and every few days, Digit takes a little money out of the account. When you sign up, Digit asks that you save them as a contact so you know how to get in touch with them for future transactions. You get a text message when the money comes out of the account.
How do I use Digit?
You sign up using Digit and you correspond using your phone. There is a list of commands you text to Digit to gain information. For example, for your Digit account balance, you type “S” for savings balance.
Do I need a savings account for Digit?
No. You do not need a savings account for Digit. The funds are held by Digit in one of their accounts. If you need access to the funds, you simply text Digit and the funds are transferred to your checking account.
Is it safe to use?
Digit is safe. The balance of the money held by Digit is insured up to $250,000. Your personal information is anonymous. They do not store your bank login information and they are FDIC insured.
Won’t I have to worry about overdraft?
No. Digit is confident in their ability to help you save. They guarantee to pay your overdraft fee should it happen. They actually guarantee they will pay it 2 times for each customer should it ever happen. On average, Digit saves $10-$30 per week based on what you have in your account and based on your spending habits. The frequency and amounts will depend on your personal habits. You do have some control over how much is saved. You can tell Digit to “Save More” or “Save Less” after you see the savings patterns from Digit. You can also set a minimum amount that you need in your bank account so Digit won’t go under that number.
You can check out other Frequently Asked Questions here.
What banks are affiliated with Digit?
Digit is affiliated with 2,500 banks in the U.S. They are not available internationally at this time.
How do I access my Digit savings?
You simply text Digit and if you are needing a transfer, Digit will transfer over the funds to your checking account per your request.
How much money is generally taken out?
As mentioned above, the range is typically $10-$30 per week depending on your individual spending habits.
Why the heck is Digit Free?
I was wondering the same thing… until I looked it up. Digit is free because they get paid the interest that is transferred into your Digit savings account, just like banks get paid for having your money. You don’t earn interest on your money through Digit, but if you have trouble saving in the past, this service does make it nice and easy to save money. Yes, it does kinda stink you don’t earn interest on your money, but it is really convenient to be able to do everything by phone.
Things I like about Digit
I love that Digit is free to use. I also love how they artfully know how to save money based on how I spend. I think that part is really cool. I like that I will have a little emergency fund without even trying. This would also be great for a Christmas fund or an upcoming vacation. It would also be great if you were having a hard time establishing an emergency fund. I like that it is very user friendly and I like that I can manage everything by using my smart phone. I also like that you can turn Digit off if you want to pause how much money you are saving.
Things I don’t like about Digit
You don’t earn interest like you would with a bank. However, the interest I would earn with a bank would be low anyways. For me, it is a trade off. I prefer not to have to go to a bank to open up a special savings for things like Christmas or vacation funds. This is just more convenient for me.
If you are interested in signing up for Digit, you can join here for free.
What method works best for you to save money?
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