Want a savings account that saves money automatically and intelligently? This is one smart way to save.
Enter Digit.co, a different kind of savings account.
I first learned about Digit almost a year ago. I signed up and let it get to work saving for me. Whats great is it moves small amounts of money depending on your balance from your checking to your savings, maybe once a week. The way they do it, I don’t even notice the money gone so its a pleasant surprise when I check my Digit savings balance.
You can customize how often it saves, and also set a minimum balance for your checking account. So you can tell it to only save if you are over $100, $500, $777, or any amount. This lets you setup a buffer. If for some reason you withdraw all your money from your checking and Digit causes you to overdraft, they will reimburse you. Their system seems smart enough that this won’t ever happen but its nice that they have a guarantee in place.
The site is legit, they raised $2.5m from Google Ventures & Alexis Ohanian (one of reddit’s cofounders). No hidden fees or anything.
HOW IT WORKS
HOW TO GET STARTED
- Sign up to Digit.co
- Link a checking account for Digit to monitor
- Link a cell number to get daily text updates
- Every few days Digit will check your balance, and if you have enough money they will transfer a couple dollars to your Savings
IS MY MONEY SAFE?
It is. They hold the funds in Wells Fargo and Bank of America accounts, FDIC insured. There are no fees.
HOW TO ACCESS SAVINGS
You can easily/quickly get your savings back into your checking account. You just text them “withdraw” and the money is in your account the next day!
ANY DOWNSIDES?
Only downside is you aren’t earning any interest. They are working on implementing interest.
I actually love Digit for one main reason, every morning they text me with the current balance of my checking account. Its odd but I really like the alert. Its part of my morning routine seeing it on my phone. It also tells you how much your balance has changed and you can even respond “recent” to get a breakdown of recent transactions that caused the change.
Thank you for reading!