Digital apps provide entertainment galore, but some apps like Digit App can actually help you improve your life. The present generation is often accused of being self-absorbed and irresponsible and totally addicted to their mobiles. But this generation is also reaping the benefits of being digital-savvy and getting their learning in on-the-go.
In order to help you get a grip on your finances, a tailor-made app has been created to help keep a check on your financial numbers. Once you sign up for the app, they will have access to your bank account. This access allows the app’s algorithms to pick up on your spending habits.
Based upon the results of what the app determines your spending to be, it withdraws money for you into a savings account. We’ve looked a little further into exactly how this app works. Digit App does in fact help you save money without you being too involved, but there are some limits to what it can do. Read below to find out if this app is right for you.
What is Digit App?
As the motto of the app suggests, Digit helps you save your hard-earned money by analyzing your spending habits. Once you are registered and your checking account is opened, Digit does all the thinking for you and moves money that you don’t require, from the checking account to your Digit savings account.
What Are The Benefits Of The Digit App?
A Safe Saving Process
Created by Ethan Bloch, the app is a boon for young professionals who cannot be bothered with the nitty-gritty of setting aside some part of their salaries. Digit analyses income and expenditure patterns for you and moves small or big amounts, as the case maybe into the Digit savings account, helping even spendthrifts save some money.
Digit is completely safe to use as it uses the best security systems to ensure total privacy and protection of account details. It uses 128-bit encryption and does not store bank login details either. Moreover, your savings are deposited in an FDIC insured account that will reimburse you in the event of any mishap or fraud.
You Get An Annual Savings Bonus
One of the attractive features of your money manager – Digit, is that it also offers a bonus for your efforts You are rewarded with 1% annual Savings Bonus which gets paid to your account once every 3 months.
The bonus amount is calculated from the average daily balance in your Digit account over the previous 3 months. This includes Rainy Day savings and money accrued toward goals or bills.
Digit Covers Overdraft
With a Google-backed bot handling your money, you may be worried about running out of cash due to overdrafts. But the app is well-equipped to take care of this kind of circumstance.
And if by any chance a Digit transfer results in an overdraft from your checking account, the company will meet the associated fee. The Digit savings accounts don’t specify any balance requirements either.
You Can Try Out The App For Free
Though the app was free initially, it has started charging a monthly maintenance fee of $5, which can be tough to meet. This means you have to pay money to save money.
However, you do have a 30-day free trial period which will help you discover if you really need the app to manage your earnings. You also do not accrue interest on your savings amount other than the aforementioned.
What Are The Negatives Of The Digit App
You Need A Debit Card
One disadvantage of the app is that you must use your debit card to make your purchases or use services. This is primarily because Digit tracks your spending habits based on the use of the debit card.
If you shift to using your credit card or pay in cash, the app will not be able to draw up an accurate algorithm to save money. And therefore, it may not prove to be super beneficial as you had thought it to be.
Limited Access Via Website And Phone
One cannot deposit or withdraw money using Digit’s website. The information available on the phone is also limited for finding out things like balance, transaction and days left to receive your bonus. If you wish to keep track of the more detailed information, then you have to log in via a computer.
The app is a first step towards saving though there are doubts regarding the efficacy of saving based solely on spending patterns. The algorithm used has also never been explained satisfactorily. Despite these hiccups, Digit has proved to be popular among the youngsters who are grappling with the process of “adulting.”