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I couple of years ago, I signed up for the Digit savings app after hearing about it from a friend that I trust. I was intrigued because Digit was designed to be a “set it and forget it” app.
I’m a huge believer in automation. I’m only human, so sometimes I forget to move money into my savings, sometimes I am lazy about saving money, and sometimes I tell myself that I don’t have enough to put back and that I’ll put more back next month (which I usually never do).
Aaannnnd then I go spend $20 on a box of wine, because boxed wine makes me feel frugal despite the fact that I could have thrown that Andrew Jackson in savings…but naw. Going to the trouble of logging into my bank to transfer a measly $20 to savings is too much of a pain in the ass and way less fun than a glass of Malbec.
With Digit, you connect it to your bank account, and because of algorithms written by people way smarter than me, somehow it knows how much you can afford to save. It saves amounts it knows you can afford based on your lifestyle and spending habits.
Seriously, I have no idea how it works, but some days, Digit sees that I have less money in my checking account than normal, so it only saves a few cents. Literally, I have days where Digit saves just 12 cents.
Other days, it sees that I have more money and haven’t touched it in awhile, so it might save $15, knowing I won’t “miss” it.
Basically, it embezzles my own money for me.Basically, Digit embezzles my own money for me.Click To Tweet
Over the past 2 years, Digit has saved a total of $2,123.91 for me. That’s an average of almost $100 per month, and the brilliant thing about it is that I didn’t have to touch a thing. This was all automatic, and in addition to my normal savings (which I still did).
The Digit Savings App is Totally Transparent (and Secure)
Just because Digit is automated and doesn’t require anything from you doesn’t mean you don’t know what’s going on with it.
The app has a text-messaging feature that is almost like getting a text from a friend. It sends you a courtesy text each day to tell you what your current checking account balance is. It sends you texts to let you know how much it has saved for you over the past few days.
And if you want the app to save more or less for you, you don’t have to log into an account and change any settings. All you have to do is just send a text that says “Save more” or “Save less”.
It uses state-of-the-art security measures, is encrypted, etc. and is FDIC insured up to a balance of $250,000.
Save Money for Any Occasion – Even a Wine Allowance!
A more recent feature is something called Goalmojis. When you first sign up for the app, any savings goes into your “Rainy Day” fund by default. But you can also set up new Goalmojis for monthly bills or any category of savings you want.
Wanna start a savings account solely for your cruising kitty or for general boat maintenance? You can do that. I can even create a monthly wine allowance with the app!
All you have to do is text Digit to set up a new Goalmoji or bill. It will ask how much total you want to save and when you’d like to save it by. It will then calculate how much to deduct each day to ensure you meet your goal. Of course, you can pause or cancel the Goalmoji at any time.
Withdrawing Money From Your Digit Account
Like everything else, Digit makes it extremely easy to withdraw money from your Digit account and move it back into your bank’s checking account. There are no restrictions and no penalties.
Just send a text to Digit and say, “Withdraw $1000” or whatever your desired withdrawal amount is. The app will reply back to confirm, and the next day, the money will be back in your checking account, ready for immediate access.
How Much Digit Costs
You can try Digit completely free for 100 days, and after the trial, Digit charges a $2.99 monthly fee. But knowing I’m saving almost $100 per month without even missing it is worth the tiny price to pay for the service. I know myself, and even though I love to save money and make a game out of it, if it’s just another thing I have to remember to do, I’m not going to do it.
Plus, when we’re cruising, we can’t always get wifi, or don’t always feel comfortable logging onto our bank websites when using unsecured or public wifi connections. Digit prevents me from having to do that since it’s hands-off. That is worth the price of a cup of standard brew coffee each month.
Digit Savings Bonuses
Unlike that awful Robert Redford movie, however, all is not lost, because Digit does give you two ways to offset the small monthly fee.
First, they pay an annual 1% bonus based on your average Digit account balance, and they pay it out quarterly. (So you get 1/4 of the 1% bonus each quarter). So if you carry an average balance of $4000, that’s an annual $40 bonus (paid out $10 quarterly). It’s not a whole lot, but neither is $2.99 per month.
The second and best way to offset the fee is to refer your friends. Digit offers a generous referral bonus of $5 for each person you refer. So if you like the service and refer a few friends, you get $5 for each friend who signs up! This can add up quick. I’ve made about $150 or so just referring people. Again, not a groundbreaking amount, but savings is savings and it all adds up.
So there you have it. The Digit savings app is one great way I have been able to save money without feeling the sting of seeing the money go away, and without even having to lift a finger or log into an account.