Saving money is kind of hard.
I don’t mean just in the living frugally sense. I mean being able to keep money in your bank and not spend it.
A few years ago I started putting my emergency fund in a completely different bank account to make it a little bit harder to “accidentally” use.
I’ve discovered that I save money best when it isn’t easily accessible from my operating account. There is a lot of truth in the old saying “out of sight, out of mind.”
If you are struggling to save money, you need to try Digit. A Digit savings account is designed to do all of the work for you.
You’ll Easily Save Money With A Digit Savings Account
Digit is an FDIC insured company that uses a computer algorithm to transfer small amounts of money from your regular checking account to a Digit savings account.
The transfers are done based on your spending & deposit habits.
The system can tell how much extra money you have in your linked account and will periodically make small transfers from your regular account into your Digit savings account.
If you struggle to save money, I highly recommend trying Digit out. Even if you are like me and have savings accounts for your savings accounts I still recommend the program.
I’m the type that really likes to have control of my money, so I was really hesitant to try it out. However, as a personal financial blogger, I love trying new things and finding products that may help my readers. I was very pleasantly surprised with my experience reviewing digit savings accounts.
Digit is a product I’ve used and will now recommend.
How to Set Up a Digit Savings Account
Setting up Digit was super easy. I created a login (which included phone & email verification) and then linked my bank account. The linking process was super simple and didn’t require a ton of extra work like I’ve had to do in the past.
Setting up my Digit Money saving account took me less than 5 minutes.
Why I Love Digit Money
Three months later I have saved just under $500 in my Digit account.
I’m rolling in the dough, huh.
I know, it is a very small amount, however, it is a little bit of extra money that is now being saved for our next vacation. As I continue to use their system I can guarantee this money will continue to grow.
What I like about the Digit system is that I didn’t even “notice” the money was gone. I check my accounts daily, so I knew it was gone, but the amounts weren’t large enough to cause issues with my budgeting.
It was almost like I had chosen to eat out a few more times than normal.
The missing money was never enough to get my pain receptors going, but was just enough to actually add up.
I love how simple and easy it is to quickly save a little bit of extra money with Digit.
Editors Note: It has been 6 months and I now have $1,258.27 saved through Digit.
Digit Money Saving Review – Positive Features
1. Found Money
Digit’s greatest strength, in my opinion, is in the concept of found money. It is really easy to look at our bank accounts and think because you have a balance you can keep spending.
If you are budgeting and controlling your money hopefully this isn’t your mentality. However, even when you aren’t paying attention it is easy to fall into the mind trap that the money is there and as a result, can be spent.
Your Digit savings account takes little bits of extra “found” money throughout the month. This means you don’t spend the money.
These small amounts aren’t even noticeable to most people. However, as you begin to add the little amounts up, they can quickly become larger amounts.
2. Digit Accounts are easy to set up and use
I had my Digit account set up and ready to go in less than 5 minutes. From there, I receive periodic emails with updates on my balance. I didn’t have to do any extra work or monitor anything in the system.
The system takes care of all of the work associated with saving money. To be honest, that could be a positive or a negative, but I’m choosing to view it as a positive.
3. Digit Overdraft Guarantee
Digit guarantees that you will not overdraft as a result of their transfers or they will cover the fees. If you keep a super low balance you may want to watch your accounts, but overall, the amounts were insignificant enough on my end to never be a concern.
4. Regular Communication
This could be a negative or positive depending on your view of texts. Digit texts you regularly with updates on your banking balances and how much they are transferring to your savings account. I personally love it, but I’m kind of OCD about my money. You can turn off this feature if you’d rather not have the updates.
Other Positive Features:
- State of the art security features including the fact that your personal information is anonymized, encrypted and securely stored
- All funds are FDIC insured up to $250,000
- Funds available for transfer to your bank 24/7/365
- No withdrawal fees
Digit Money Saving Review – Negative Features
1. Lack of control
Digit controls how much and when money is taken from your account.
Even though they have the overdraft guarantee, there is still that little part of me that stresses about allowing a random computer algorithm to take money from my account. It is just hard for my OCD personal financial nature.
So far, the algorithm has been perfect and I’ve never even come close to over-drafting my account, but the chance is always there.
2. Interest Rate
Interest rates are pitiful everywhere, so to be honest, I’m not sure this really matters.
With Digit automated savings, you don’t earn interest on your money until you’ve had three consecutive months of deposit.
Once you are eligible to earn interest, the rate is 1%. On a positive note, this is the same rate I’m currently earning in my regular saving account.
If you run the numbers, I’m currently making .16 cents per month on my balance of 200.
3. Monthly Fee
Digit has a monthly fee of $2.99 that they begin to charge after 100 days. This isn’t a huge amount, but you will need to have $3,500 in your account before you’ll offset the monthly charge with a 1% interest rate.
Will I continue to use Digit?
When I first ran the numbers and realized the balance I’d need to keep in my account to offset the monthly charge my immediate answer was no.
However, after using a Digit savings account I’ve come to really like the concept. It is such a simple easy way to save a little bit of extra money. My Digit money saving review changed the way I viewed this product.
I love the fact that Digit does all of the work for me.
It just runs in the background and the money just keeps adding up.
I’m not sure if I’ll continue to use it indefinitely, but for now, I’m going to use it for another 3-6 months and see what happens.
To be honest, the only reason I tried out Digit was to review it for this blog. I’ve always questioned these type of programs and didn’t see the value. I’m a total believer in the micro-savings sites now.
I love the simplicity of the program. I set up Digit to run in the background and it does all the work for me. Yes, I’ve continued my other savings programs, but the money I save in Digit is a total bonus for me. It is extra money, that I don’t believe I would have saved on my own.
It is even more valuable to non-savers who are struggling to put money aside for a rainy day. As a money saving system, I believe that Digit is an amazing resource for anyone struggling to manage their money.
If you are looking for a new way to save money, or need a boost to your self-control, I highly recommend giving Digit a try.
If you are looking for other ways of saving money you may want to check out these posts:
Money Saving Posts:
- 14 Money Saving Tips to Lower Your Grocery Bill
- 5 ways to Stop Spending Creep from Destroying Your Budget
- How to Cheat Your Clothing Budget and Still Dress in Style
- How to Avoid Busting Your Budget
PS. It has been 6 months and I now have $1,258.27 saved through Digit. Last month I made $.78 in interest and was charged $2.99. This means technically I lost $2.21. However, I don’t think I would have saved this much money on my own. As a result, I’m still keeping this financial tool in my recommend bucket.