A lot of people want to save money, but only a few are actually able to do it successfully. The majority of people who try saving money end up prematurely spending what they save or they never even get to start.
One major issue that people face when it comes to spending is discipline. Even if you have excess money to be able to save, it takes proper discipline to be able to do this consistently.
You will need to be disciplined enough to put aside this excess money in a bank or a hiding place and be disciplined enough not to spend it.
Though I understand there will be emergency situations where you will be forced to use this money. But most of the time the money gets used up for leisure or entertainment.
One app, though, wants to change that and that app is called Digit. It is an app that will help you save money by automating the process for you.
The beauty of this app is that it also provides you with an opportunity to make some money by referring people and by earning a bonus.
The amount of money you can earn here will depend greatly on your effort in getting people to sign up and on how consistent you will be in saving money. But is the Digit app really a legitimate opportunity to save money or a scam?
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The Digit App is a Legit Opportunity To Save and Earn Money
Digit is an app that is designed to make it easier and simpler for you to save money. This is done by automating the process of setting aside some money as part of your savings.
The beauty of this is that the app will only set aside money that you can afford to save without sacrificing your budgeting.
The app also allows you to earn some money referring people to the app and for constantly putting money into your Digit savings account.
From what I’ve seen, the app seems legitimate. It does allow you to automate saving your money and it does provide opportunities to earn small amounts of money to add to your savings account.
There are, however, some issues with the app. One of the issues is the $2.99 monthly fee that you will need to pay to use the Digit’s services.
There have also been complaints from some members about the app overdrawing their checking account, which caused them to pay fees to their respective banks.
The interest bonus you can earn from this app is not that high, compared to other online banks.
There are more issues which I’ll discuss in more detail, as we progress further in this review.
Who Uses the Digit App?
The Digit app is designed to be used by those who are looking for ways to help save more money.
The app is specifically designed for anyone who is having a hard time disciplining themselves to set aside a certain amount a month or a week for their savings.
Digit will basically help you with this through their automated system of withdrawing a certain amount in your checking account.
The app uses an algorithm that tracks your spending and determines how much money you will be able to save in a month or a week and puts it in a Digit Savings account.
Digit also provides an opportunity to increase your savings account by recruiting people to the app and by constantly putting money into your Digit Savings account.
The app is free to use for 30 days and after that, you will be charged $2.99 to use it. Registering is free, but the app is only available to U.S. residents.
In the next section, I’ll discuss in more detail the registration process and how the app works.
How does the Digit App Work?
Digit is an app that allows people to automate the process of saving money. This will allow you to save money without the need to constantly think about it and process it yourself.
The app also provides an opportunity for you to earn some money to add to your Digit Savings account. Downloading the app and signing up is free and easy to do so.
You will just be required to provide your personal information and the details of the checking account that you will link to the app. You will also be required to provide the login information of that checking account.
Once you have signed up and linked your checking account, you will be required to provide specific savings goals and when you want to achieve that amount.
This will give Digit an idea of how much money you need and when you need it. Then the app will spend the first few days analyzing your spending habits.
They use an algorithm to determine how much money you can afford to set aside for your Digit Savings account and when would be the best time to transfer it. The algorithm allows them to look for money every 2 to 3 days.
You can expect the app to withdraw about $0.50 to $150, depending on how much you can afford. The app tracks all of your spending habits, as well as other expenses that may occur based on past data.
Digit won’t want to put you in a financial bind whenever they withdraw the money. The app’s savings account is FDIC insured for up to $250,000.
It’s important to note that your account will only be free for the first 30 days. After that, you will need to shell out $2.99 a month for Digit’s services.
Your savings account can also earn an annualized bonus of 1%, provided you have saved with Digit app for 3 consecutive months. The bonus will automatically be deposited to your savings account.
Digit also allows you to make some money with the app through their referral program. You can earn $5 whenever a friend signs up to the app using your referral link. This is a good opportunity to add to your savings account with Digit.
Digit says in its FAQs page that they have a ‘No Overdraft Guarantee’, which means the company won’t draw more money than what you can safely set aside.
If they do overdraft, the company will reimburse the fees for up to 2 instances. There are, however, a lot of complaints about the app overdrawing checking accounts.
Some of these complainants didn’t just experience the overdraft once or twice, but several more times. It seems there are some problems when it comes to detecting if the app is overdrawing an account.
Another issue that some people have with the app is that it is very hard to converse with a customer representative. The only way you can converse with Digit representative is via email.
The app doesn’t have a contact number, which makes it hard to address issues or problems immediately.
There’s also some who didn’t like how they needed to wait for 3 to 4 days before they get their money back to their checking account.
What I Like about the Digit App
Now that we know more about Digit and what it offers, it’s time to discuss what I like about this app.
- The first thing that I like about the Digit app is that it can automate saving your money. The app uses an algorithm to track your expenses and calculate how much money you can save and when would be the best time to transfer it to your savings account in the app. In this way, you won’t have to worry about going through the process of doing the transfer yourself because Digit does it automatically.
- I also like that Digit provides you with two opportunities to increase the money in your savings account. First, you can earn a 1% annualized bonus for saving money consecutively on the app. The second one is through Digit’s referral program, where you can earn $5 per friend you refer to the app.
What I Dislike about the Digit App
Of course, there are also things that I didn’t really like about the Digit app and I’ll be discussing them here.
- My first issue with the Digit app is that their No Overdraft Guarantee doesn’t seem to work all the time. There have been a lot of complaints about the app overdrawing checking accounts, which results in the members paying their bank overdraft fees. And it’s not just once or twice, but many times at that. It’s important that Digit fix this issue ASAP, as this is a big negative on their part.
- I’m also not on board with the $2.99 a month fee that you need to pay to Digit. Though you can still earn the money you will spend through their bonus or referral program, I still believe their fee is a bit high compared to other similar apps. And if you are not really putting a lot of money into the savings account, then the interest bonus won’t be able to cover your monthly fees.
- Another thing that I didn’t like about Digit is that you can only contact their customer service via email. This means that resolving your issues or concerns can only be done via email, which is likely slower than if you are talking to someone via telephone.
Do I Recommend the Digit App?
After learning more about Digit and what it is able to bring to the table, I can say that this is an app that is not really for everyone.
Yes, being able to automate your savings is a good thing and this can really help you save some money. But there are certain limits to what the app can do.
First, the app’s algorithm doesn’t seem to factor in any sudden expenses that will appear in your checking account. It can only monitor and predict recurring expenses.
So if there is a sudden big expense that will appear in your checking account, this will cause issues with how the algorithm monitors your spending.
I’m also not a big fan of the app’s $3 monthly fee. I believe this is a high price to pay just so you can automate saving money.
And if you’re someone who doesn’t really have a lot of extra cash lying around, then this added expense can be more detrimental than helpful.
You also have to contend with the possible overdrawing of your checking account. There have been a lot of complaints about this issue, which Digit can hopefully address.
Yes, the app is helpful when it comes to saving money. But I believe its positives are not enough to offset the negatives.