You work hard, you play hard, and somewhere at the back of your mind, you know you need to be saving. There is a new service called Digit that can help you out. In this Digit review, you’ll learn how to automate your savings the easy way.
What is Digit?
There are lots of ways to save, such as setting up a regular draft to savings from your checking account. But what if you don’t want to commit to a large, monthly or bi-weekly withdrawal? Life happens and the amount in your checking account fluctuates.
Five percent isn’t enough for retirement, an emergency fund, or just the occasional big purchase.
If you are saving 5% or less, a new service that analyzes your checking account, spending patterns, and automatically withdrawals what you can afford is now available for free!
Digit is a service that makes small, usually $5-$50 dollars, transfers to your Digit.co saving’s every two to three days.
If you haven’t been able to save on your own, or you don’t want to save a large amount once a month, give Digit a try. Other reasons to sign up are:
- a savings goal
- an emergency fund
- a Christmas gift budget
- a vacation fund
- or just to get into the habit of saving
How does Digit work?
You allow Digit to access your checking account with their bank-level security process. Digit starts noting your spending habits and the average amounts in your checking account.
After doing this analysis, Digit starts transferring acceptable amounts of money into a Digit Savings Account.
What about over-drafting my account?
Digit has a no-overdraft policy so they won’t put you into the red.
How do I control Digit?
Digit can be monitored and accessed by texting in addition to their website.
If you want to save additional money, text “save” to Digit and it will ask you how much to transfer.
If you need access to your money, text “withdraw” and Digit will ask how much to transfer back to your checking account.
How is Digit free?
My first question when looking at Digit was:
How is this service free?
Digit does not pay interest on your savings, so they can earn interest on members’ savings and pay for their business expenses.
They do pay you 5¢ on every hundred dollars you have in Digit for three months.
Interest rates in September 2015 are at 0.01% at Bank of America and Wells Fargo Savings accounts, so missing out on interest is not a reason to skip out on Digit.
Automatic savings works!
Making saving something that happens even when you are not thinking about it is one of the best ways to save. You can’t spend what isn’t in your checking account, and many of us tend to spend all we have out of habit.
Saving $5 to $10 at a time is going to be almost unnoticeable to everyone who isn’t counting every penny. Many of us aren’t counting every penny, and that is why we don’t have savings.
How to get started
So if you are ready to make saving a few dollars here and there add up to big savings this year, give Digit a try.
- Visit Digit.co
- Link Digit to your checking account