★ Rockstar Review: Digit.co (Save Money Automatically!)

Posted January 10, 2017 6:00 am by with 9 comments

Review of: Digit
Price:
Free

Reviewed by:
Rating:
5
On January 10, 2017
Last modified:January 9, 2017

Summary:

An easy way to automate your savings! Connect with your checking account and let Digit do the rest :)

digit screenshots

This is part of our Rockstar Reviews series.
Be sure to check out all previous products we’ve reviewed!

digit logorockstar rating 4 and a half stars
Who it’s for: Anyone having trouble saving money or wanting to push themselves to save even more.

Ease of use: Super easy. Just connect your checking account and their robots do the rest!

What I like about it: Instead of other apps that will just round up your transactions and drops change into savings or investments, Digit actually moves chunks of money over anytime it sees savings sitting there (it could be $6 one day, and $26 the next). I also like that you interact with them directly through text messages, and can speed up or slow down the savings algorithm (among other settings) to your liking. They will also text you your checking account balance every morning which is pretty helpful!

What I don’t like about it: It takes a while to get comfortable with a robot in your account transferring money out on your behalf :) There’s a bunch of settings you can tweak to help make you more comfortable and fast, but if you love staying in full control then this service is definitely not for you.

Digit.co (Free!)

The App That’s Saved Me
$8,266.49 So Far :)

Two years ago, a friend of mine texted me about a new app that was going to hit the scene called “Digit” and said I needed to check it out. He told me it was going to be a game changer, and asked if I wanted to connect with the founder as they were friends.

I said yes, and two months later I had become not only one of their biggest fans (which is rare as I don’t usually get obsessed with apps), I also joined their board of advisers because I believed in them that much. I’d spend the next three months telling every blogger and friend I knew about it, and two years later we’ve all saved a combined $5,000,000. Not a typo.

Here’s a screenshot of my own money saved (sadly not near millions ;)):

digit screenshot

Why am I telling you all this? Well for one, to let you know I’m very much biased here towards this week’s app, haha… And two, to show you just how helpful Digit can be :)

Now it’s not for everyone, as we’ll get to in a bit, but here’s an overall snapshot of all the pros and cons and exactly what Digit is. I hope it helps!

What is Digit?

Digit is an app/service/tool that automatically saves money for you without lifting a finger. You connect your main checking account with them, and every day their robots will scan your account to analyze your spending patterns and then transfer over small amounts of money it knows you won’t miss (usually $5.00-$50.00). If you have money to be saved, it saves it for you, and if you don’t, it doesn’t! That’s it!

Here’s a 1 min video if you prefer the visual explanation:

Ummmm… I have questions.

Okay, lay ’em on me!

  1. What if I don’t have any money to save? If you have no extra money laying around, they won’t save you anything and will just wait for when you do (though you’d be surprised what they find!).
  2. What if they take out too much and my account bounces? They have a “no-overdraft guarantee” that will take care of any costs you’d receive in the off chance your account bounces (which their algorithms are extremely careful of). You could also set a threshold of when you’d like them to stop saving for you once your checking account hits a certain minimum if it makes you feel more comfortable. For example, I have mine set at $1,000 as I like having a padding in there.
  3. What if I budget using a credit card? As long as you pay your credit card with your checking account, the money will get analyzed just like any other transaction.
  4. What if I get lazy and just let them save everything for me? This is definitely a possibility, however seeing that you’re on a $$$ site right now (for fun!) I’m sure you’ll be just fine ;)
  5. Where do they save all this money? Digit opens up a savings account in your name that they manage for you (at a bank they are partnered with). You can take out or put in money anytime you want by simply sending them a text message. It takes one business day to get it back into your checking account.
  6. Is Digit insured like other banks? Yes – all money saved is FDIC insured up to $250,000.
  7. Is Digit secure? Yup. All personal info is anonymized, encrypted and securely stored using state of the art security measures.
  8. Can you withdraw your money from Digit anytime you want? Of course! Just text in “withdraw” and you can send as much or as little of your savings right back to your checking. The same as any other bank account (only cooler with texting :)).
  9. Is Digit free? Yes.
  10. How do they make money then? They make money off the savings sitting in these accounts, as well as future features that will one day be rolled out.
  11. Do I get any interest? Not “interest” technically, but yes – they give you cash “bonuses” for leaving the savings alone. Every three months you will automatically receive one of these Savings Bonuses based on your average Digit balance over the last 3 months. This comes out to 5 cents for every $100.
  12. Does it work in Canada or other places in the world? No :(
  13. How about with my really tiny bank? Probably not, though they do work with over 2,500 banks in total! And you might be surprised even if you do have a relatively smaller one, so I’d still give it a shot if it’s something you’re interested in.
  14. Do they have an app Yes! Both on Apple and Android now! They didn’t when I first started using them, but now both are up and running and it’s great :)

Some of the Digit “Commands”

Since everything is done over text after you’re signed up, they provide you a list of “commands” you can use to do stuff. Here are some of the most popular/helpful ones:

“Savings” — This will tell you how much you have saved up in your Digit account so far.

“Checking” — This will show your checking account balance (which you also automatically get every morning unless it starts annoying you and you shut it off :))

“Recent” — To see a list of the last 3 transactions in your checking account.

“Save” — If you want to have them move over extra money on your behalf.

[Pro tip: Add a $ amount after “Save” and you can do it even quicker. For example, let’s say you want to save an extra $22.00 because you used a coupon somewhere that saved you $22.00, and now you actually want to SAVE IT for real. So you’d text in “Save $22” and Digit will move it over for you.]

“Pause” — If you want Digit to stop saving for you at any time.

“Hello” — If you want to hear a fun fact ;)

bill murray text gif

Overall Pros and Cons

Here are the quick pros and cons to using Digit to wrap it all together:

Pros:

  • Digit literally saves money for you
  • It’s automatic
  • It’s separated out from your accounts giving you less temptation to pull from it!
  • It’s super easy to use and interact with
  • You can tweak a lot of the features to best fit your situation

Cons:

  • You have to give another app access to your bank account
  • As well as relinquish a little control
  • They move over money every few days which can be annoying for reporting
  • They don’t work with all banks or all countries (only U.S.)
  • You have to wait a business day to get your savings back

Worth Giving It a Shot?

Is it for everyone? No. But if you’re still looking for a better way to save without the frustrations (or forgetting!) of doing it on our own, Digit can be a solid option.

And remember – it’s all YOUR MONEY at the end of the day, so you can still do with it as you please! Some periods I let it build up just to see how high I can get it (it’s a fun game!), and others I need to transfer it back out to pay for stuff. Life happens.

But as good as I am with my money, I can tell you for a fact I wouldn’t have had over $8,000 extra saved without using Digit those two years ago. So I’m definitely glad I gave it a shot!

Want to try it? Sign up here.

*****

All Rockstar Reviews include affiliate links to the companies being featured. Thank you to all those who support our site by going through them when you find them helpful!

Jay is the founder of Rockstar Finance, and blogs about money over at BudgetsAreSexy.com. He loves all things finance, coffee, and hip-hop, and is the proud daddy of two beautiful little boys!
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9 responses to ★ Rockstar Review: Digit.co (Save Money Automatically!)

  1. Go Finance Yourself! January 10th, 2017 at 8:07 am

    Interesting concept. If you’re just starting out and feel like you don’t have any money left over to save, then this app might be worth a shot. The bad thing is you’re relying on a computer to save an arbitrary number for you that will vary each month. Therefore, I don’t see it as a long-term play. It also promotes a very hands off approach to your finances.

    I think a better move is to figure out an amount you can save each month, however small it might be. Then take that amount off the top of your paycheck and set it up to automatically transfer to savings. Increase this amount anytime you receive a raise.

    Good idea behind this app, and good for certain people to get started. I just don’t see it as a long-term tool to use.

    Reply

    • J. Money January 10th, 2017 at 10:00 am

      yup – doing it yourself every month is even better (but only if you actually do it ;)).

      Reply

  2. Brian @ Debt Discipline January 10th, 2017 at 8:20 am

    I started using Digit late last year and I’m a big fan. Very easy to use and has helped us increase our savings rate. I would recommend giving it a try if you are looking to increase your savings and have been struggling to.

    Reply

    • J. Money January 10th, 2017 at 10:00 am

      You tease! How much have you saved so far??? :)

      Reply

  3. sea4sky January 10th, 2017 at 10:41 am

    Although I automate savings to capitaI one from every paycheck, I also use digit, qapital, and acorns. It cracks me up to see each savings app round up the savings done by the other apps. Digit is by far the most aggressive at saving for me, but it’s very easy to dial it back if I get worried about my checking balance. I’ve already saved $800 in just a few months, without ever feeling it. It’s also more fun to interact with, since it’s by text–they even tell me my checking balance every morning which helps me stay on track with spending. I enjoy the friendly, low-key experience with digit and trust its algorithm to work in the background, identifying money I wouldn’t have known I could save. I also love qapital, since they have if/then rules that let me ding myself for shopping at guilty pleasures stores (for instance, it “saves” $10 bucks for me whenever I spend money at Whole Foods, target, and a bunch of others).

    Reply

    • J. Money January 11th, 2017 at 11:40 am

      Nice!! I haven’t tested out Qapital yet, but I also rock Acorns and then now Qoins (for debt paying off) and I too think it’s hilarious to see one xfer going out, and then another rounding that up and dropping into investments and now into debt haha…

      Gotta love technology :)

      Reply

  4. Thomas January 10th, 2017 at 5:02 pm

    I tried it, and liked it…mostly. More than once they withdrew when I only had a little money in my account, sending me into negative balance–not enough to cause fees, but annoying nonetheless.

    Reply

    • J. Money January 11th, 2017 at 11:38 am

      Ewww well that shouldn’t be happening. Want me to pass your name/email over to them and see if I can help figure out why?

      Reply

  5. Heather January 12th, 2017 at 1:22 pm

    Total Savings Since Joining Digit
    $5,343.88
    I joined around Aug 2015. I love Digit. I still save money every month automatically but this just finds the “extra” money that is just hanging around my checking account. Another good bonus is that now when I get a large sum deposited (bonus, side hustle, extra tips) I decide quickly where to move it before Digit takes it all (yes, I know I can transfer it back). Anytime I have money just hanging out in my checking account it just disappears, so how much better for it to disappear to savings than to junk!

    Also thank you for recommending Digit so many times, it took me awhile to see how it might be a good thing for me but you always talked so highly of it I figured why not try it, and now I love it!

    Reply

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