Digit is a free app that siphons small amounts of money from your checking account to an FDIC-insured Digit account based on an algorithm that analyzes your checking account balance, upcoming income, upcoming bills, and recent spending. They currently have an iPhone app and are working on an Android app (as of 3/17/16).
So far, it’s working just as I expected. I don’t expect to save a huge amount with Digit (maybe around $1,000-$2,000/yr). It’s accessible but not always visible, so I can see myself not touching the money unless I really need it.
I think they are still in their early stages, so the interface could use some improvement, but I also like how it is so simple.
The best part about it is that it’s free, and they do pay a tiny bit of “interest” in the form of Savings Bonuses (see below).
I give it a thumbs up for now. I’ll provide more updates with actual savings after I’ve had it a little longer. For now, here’s some information I got from Digit‘s FAQ page.
Does Digit pay interest?
Is Digit safe?
All personal information is anonymized, encrypted, and securely stored. All funds held within Digit are FDIC insured up to a balance of $250,000.
What if I overdraft?
They stand behind their ability to safely identify money you can afford with their no-overdraft guarantee. If you overdraft, they will pay your fees for you, up to two times per customer.
How do I access my Digit savings?
What is the app like and how do I communicate with Digit?
The app is set up like a text message conversation. There are a bunch of commands that Digit will recognize. Here are some of them:
- savings – view your digit savings balance
- checking – view your checking balance
- recent – view recent checking transactions
- bills – view upcoming bills
- withdraw – make a withdrawal from your digit savings
- save – move money into your digit savings balance
- pause – pause saving
- commands – view all possible commands