Digit Review 2023
A Painless Way to Save Money
Commissions & Fees - 6
Customer Service - 7.5
Ease of Use - 8
Education - 6.5
Savings Options - 8
Compounding - 2
Digit Pros & Cons
- Helps you set and track different saving goals using Digit's algorithms
- Automatically budget for monthly bills
- Variety of ETF investment options
- No-fee debit card that helps you spend within your budget
- Not many investing options or control over the assets you invest in
- The $5 monthly fee is high for small account balances
- Great for beginners but not as useful for experienced investors
What Is Digit?
Digit is a microsavings platform designed to help you save small bits of money over time. As with Acorns, you won’t get rich off the money you save with this service, but it does initiate that first step toward creating a savings habit and building wealth.
“Digit believes anyone can start saving regardless of income,” says CEO Ethan Bloch. “While everyone understands the importance of saving, it’s hard to get started. Digit’s goal is to make saving as easy, stress-free, and automatic as possible,” explains Bloch.
“Digit fits into the lifestyles of people who grew up on the web and look to technology, like Uber, Instacart, and Venmo. They trust tech and use it daily to simplify their lives,” says Bloch. In other words, if you’re looking for a tech-assisted automated process to start saving, this service allows you to do this with zero effort on your part.
You can use the money you save in your account for a summer vacation or small emergencies like car repairs. Because of Digit’s micro-savings format, it’s not likely it will propel you towards a car or a down payment on a new home. But it's useful for setting smaller savings goals and staying on top of your bills.
More recently, they have begun offering robo investing services for more long-term financial goals. And you can now spend and budget for monthly bills while you work towards your saving goals.
|Mobile Access||iPhone App, Android App, Blackberry App|
How Does Digit Work?
At its core, Digit is a micro-savings app that helps you build good financial habits. But the app has changed a lot over the years. Nowadays, the Digit app has numerous features to help you save, spend, and invest your money wisely.
To help you save money, Digit evaluates your spending habits and transfers money from your linked bank account into your account.
In my experience, the average transfer each time is around $9. Sometimes it’s as much as $14 or as little as $2, depending on the balance in my personal bank account. Digit Savings are FDIC insured up to $250,000.
You can also set as many savings goals as you want so Digit can help you work towards them and track your progress. This is similar to budgeting apps like Mint and Acorns' round-up feature.
You can pause goals anytime and also set a daily savings maximum as well so Digit doesn't move too much money around.
Customers also get a savings bonus of 0.10% paid out every three months. This interest rate isn't as high as many high-yield savings accounts, but it's nice that Digit customers still get rewarded for diligently saving money.
Like its saving side, Digit uses algorithms to determine how much money you should have in your available spending account at a given time. This amount is based on your historical spending habits, and Digit's goal is to limit temptation by not keeping all your funds in a spending account.
As for how you pay, Digit offers a debit card with several perks like:
- No ATM fees at 55,000+ Allpoint ATMs
- No overdraft fees
- FDIC-insurance up to $250,000
- Instant transfers between your Digit accounts
- Mobile wallet integration so you can pay from your smartphone
Your Digit Spend account can also accept direct deposits, so you can transfer money to your account or set up future paycheck deposits.
Like its automatic savings feature, Digit also helps make sure you have enough money saved up for your monthly expenses. The app automatically calculates how much money you should keep on the side for bills like:
- Phone bills
- Streaming services and subscriptions
One advantage is that Digit also slowly moves money into the budgeting category, so you don't notice funds drain from your account at the start of the month.
This automatic form of budgeting is easier mentally, and it also helps prevent the risk you miss payments and incur late penalties.
One newer and exciting Digit app feature is the ability to start investing. Like the other accounts, Digit uses its technology to determine a comfortable amount of money you can invest every month. From there, it helps you pick various exchange-traded fund (ETF) investments that match your goals and risk tolerance.
There are three different Digit investment portfolios you can try:
- Conservative: This ETF portfolio minimizes risks and is best for short-term investing.
- Moderate: This portfolio aims for strong returns over an extended period of time.
- Aggressive: Digit's aggressive portfolio has the most growth potential but also the most risk.
Digit offers both tax-advantaged retirement accounts like Roth or Traditional IRAs and taxable brokerage accounts. You don't pay extra commissions either, and overall, it's a beginner-friendly way to start investing with little money.
You don't have nearly as much control as using an online broker like eToro or trading apps like Robinhood. But if you want to add ETFs to your portfolio while managing your personal finances, Digit is for you.
Digit Pricing & Fees
Digit charges $5 per month for their service. Your $5 monthly fee gives you access to all of Digit’s services, including saving and investing. Digit doesn’t charge a percentage-based fee on your investments or commissions on ETF trades. Your first 30 days are also free.
How Does Digit Make Money?
Digit makes money from its $5 monthly subscription fee. It also makes money from interest on cash balances. Finally, users can pay $0.99 to use Digit's instant withdrawal feature if they want to move money from Digit to their bank account instantly. Normally, Digit withdrawals take one to two business days depending on the time you make the withdrawal.
What Would Make Digit Better?
With its simplistic idea, Digit is focused on helping you save small, affordable bits of money each week. You won’t get rich using Digit.
They’re honing in on the tech-savvy Millennial marketplace with their innovative text-message savings feature and habit-forming method of getting you to save money regularly.
One thing that would make Digit better is to have a more concrete formula for calculating your savings transfers. Their current method is much too vague and actually turned me off to their service in the beginning. I tested it out only because a trusted friend used and recommended their service. If nothing else, they do offer a no-overdraft guarantee on your checking account.
It would also be nice if Digit could add some form of cash-back rewards or a higher APY. Earning 0.10% every three months is nice, but online banking apps like Juno often pay 1% APY or more. And Acorns, one of Digit's main competitors, now lets you earn cash-back when spending at over 350 different partners.
Is Digit Safe?
Digit takes plenty of security measures to keep your money and personal information safe. The company uses state-of-the-art security measures, ensuring your personal information is anonymized, encrypted, and stored securely. Additionally, Digit is an FDIC member, meaning your money is insured up to $250,000 per person per account type.
The company also uses firewalls and other security measures to help keep customer information private and secure. Overall, Digit is a safe and reliable FinTech app that is similar to many other micro-saving apps.
Is Digit Legit?
Yes, Digit is legit. While there’s no guarantee of investment performance, both the saving and investing features of Digit are legitimate, so you can rest assured you aren’t being scammed. The app helps you automatically save money, budget for bills, and helps you invest and spend without paying high fees.
Is Digit Worth It?
Whether or not Digit is worth it depends entirely on you and your personal financial situation. People who struggle to save money on their own might find Digit’s savings features extremely beneficial. On the other hand, those who have no problem saving might not find the $5 per month worth it.
Similarly, you’ll have to look at your own situation to determine if Digit’s investing services are worth it for you. It's a useful investment app fo beginners, but it's not for everyone. And no matter where you invest, you should always pay attention to any management fees you’re paying. Digit's $5 fee covers its investing services no matter how much you have invested.
However, you should also pay attention to the fees on any individual investments your money is in. You might find that $5 is a great deal, or you might decide you could save more by going another direction.
Digit Competitors & Alternatives
The Digit app is great for building good habits and keeping on track with monthly bills. However, for more serious investing, there are numerous alternatives that are better choices.
Bettermentrobo advisor designed to help customers build wealth in a variety of different types of brokerage accounts.
Like Digit, Betterment automatically chooses your investments based on your risk tolerance, but it considers a greater number of factors when choosing investments, including your financial goals and time horizon. Betterment also offers a no-fee high-yield savings accounts
Rather than a flat fee like Digit, Betterment charges an annual percentage-based fee of 0.25% of assets. Which one is cheaper depends on how much you have in your investment accounts. For amounts of about $20,000 or lower, Betterment’s fees are cheaper. For amounts greater than that, the $5 flat monthly fee is a better deal.
Betterment may be better suited to those who are more focused on investing for long-term goals than for saving. While they don’t have the same automated saving features that Digit does, the company’s investing tools and options are more robust.
Acorns' primary feature is still its round-up feature. You can set your account to round up each purchase and deposit the excess change into your investment account. To use just this feature, Acorns charges a fee of $1 per month. To upgrade your account to include retirement investing and checking, it will cost $3 per month. Finally, adding a custodial account will cost you $5 per month.
To get similar features, Acorns offers a more affordable monthly fee. However, they don’t offer savings accounts. If increasing your savings is your ultimate goal, Digit is likely the better option.
Stashinvesting app that allows customers to grow their wealth through a variety of types of accounts. Stash is well-suited to more hands-on investors. It allows customers to buy individual stocks, and even buy fractional shares. As a result, this company might be most well-suited to those who prefer to choose their own investments.
Stash also offers online banking that, like Digit, allows you to designate certain savings goals and track your progress toward each one. It also offers a unique banking perk where when you use your Stash debit card to shop at well-known brands, you’re rewarded with a piece of matching stock to help grow your investment portfolio.
Stash offers two different plans:
- Stash Growth: This plan costs $3 per month and lets you invest on your own in a personal portfolio or use Stash's Smart Portfolio to invest automatically. You can also use its stock-back card to earn free stock rewards for shopping and get paid up to two days early.
- Stash+: This plan costs $9 per month and includes everything in Stash Growth. But it's designed for families, and you can open two kid custodial accounts to begin investing. You can also get up to $10k in life insurance through Stash's partner Avibra.
|Minimum to Open Account||$10||$0||$0|
|Advice Options||Automated, Human Assisted||Automated||Automated|
|Socially Responsible Investing|
If you want an all-in-one budgeting app that helps you save and also invest, Digit is an excellent app worth using. You don't have as much control over your investments as using a robo-advisor or stock trading app. But for automatic saving and budgeting based on your spending habits, it's a useful app.
Alternatives like Acorns are better if you care more about investing but still like having a round-up feature for consistency. And for longer-term goals, you can use robo-advisors like Betterment to save on fees and enjoy more investing choices.Disclaimer - Paid non-client endorsement. See Apple App Store and Google Play reviews. View important disclosures.
Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk.
¹For securities priced over $1,000, purchase of fractional shares start at $0.05.
²Debit Account Services provided by Green Dot Bank, Member FDIC and Stash Visa Debit Card issued by Green Dot Bank, Member FDIC. pursuant to a license from VISA U.S.A. Inc. Investment products and services provided by Stash Investments LLC, not Green Dot Bank, and are Not FDIC Insured, Not Bank Guaranteed, and May Lose Value.” because the article mentions the debit card.
³You’ll also bear the standard fees and expenses reflected in the pricing of the ETFs in your account, plus fees for various ancillary services charged by Stash and the custodian.
⁴Other fees apply to the debit account. Please see Deposit Account Agreement for details.
⁵Stock-Back® is not sponsored or endorsed by Green Dot Bank, Green Dot Corporation, Visa U.S.A, or any of their respective affiliates, and none of the foregoing has any responsibility to fulfill any stock rewards earned through this program.
Just a quick note of warning here…I tried this app after reading similar articles, and ended up getting frauded, with the app continuously withdrawing funds without consent. Like many similar services customer service is all remote and different people respond to each email making it difficult to resolve. Perhaps they have worked the security kinks out now, but just pay attention to your account if you use this app!
It is Interesting that you view it as a drawback. I’ve had Digit it for years and have had no problems with the random withdrawals. It is supposed to help save money passively. I started my sophomore year of college and am currently in grad school. I have over $10,000 saved with Digit. Before I signed up saving $300 was a HUGE triumph for me. I guess it’s more for people who don’t notice random changes in their account balance.
One of my personal favorite highlights that keeps me with this app is that the daily withdrawal is so low. Digit takes money so quietly that it’s not as if I need to consider it a part of my budget. Months pass, suddenly I have a few thousand dollars that I didn’t even realize had accrued. I’m wondering if maybe I need a shorter rope, but this app doesn’t make it feel any tighter from day to day.
You can adjust your settings to where it saves less aggressively, more aggressively, or not at all.
So, digit texted me, informing me that $597 is being withdrawn from my account back into my bank account and I have yet to see the money back in my bank account. Was wondering if anyone else has had this problem?
Honestly, I love the app. I just moved out on my own and have been trying in every way to save money. I downloaded it in January, it is now March and I have saved $300.00. I don’t really mind the $2.99 fee a month because I was just blowing that money before. Also the text I get every morning are adorable lol. I also kinda forget I have the app, so it’s nice when I do remember to see how much I’ve saved that I didn’t even realize.
The app just doesn’t appear to work when it comes to transferring funds to your bank and closing the account. Right now they’re holding me hostage, because there is no customer service number and they keep conveniently being unable to process my requests with these app errors.
I was with DIGIT for just under two months and someway I managed to save over $500. Was THRILLED at how easy and painless it was but then my bank (WellsFargo) put a stop to it. They won’t allow transfers direct to my account so I had to stop. BUT I want to say to those who have better bank options it is amazing. You are in control without even knowing it.
What do you mean they won’t allow transfers direct to your account? How did you get your money then? I am with Wells Fargo and just joined Digit. Does this mean I should bow out now? Your message left those who bank with Wells Fargo hanging. Please enlighten. Thank you!
How do I withdrawal my money at anytime with no fees?
I had 35$ in my rainy day fund, on feb18th I I tried to withdraw the total , the app only let me withdraw 34.73. Now I attempted to with draw the remaining 1.12 cents twice because the app didn’t tell me why I couldn’t withdraw it. So Monday feb 19th was Presidents’ Day so the banks were closed, app and bank both say my 34.73$ is pending, today I see I go 73 cents in my account and a charge for 34$ from the app for insufficient funds, I broke and hungry , shouldn’t this be illegal? I closed my account and now I have to wait for an email response or call (888) 322-3103 and leave a voicemail, now I have to wait 7 days with no money for food until I’m paid again!
This is what I’m afraid of. The 2.99 fee I get, they gotta make money somehow. But that’s taking more. Every penny ads up when there’s hundreds and thousands of people using this.
And hope things turn around for you, uhgg life.
I am having so much trouble getting my $ and closing I have been trying with email texting do not trust
I will be cancelling my Digit account as it has been having difficulty connecting to my bank and I can receive no legitimate assistance from their help center. Certainly I am not the first person to change log in information to my bank account. There is no telephone number for customer service and it takes days to get any email response. They say I can withdraw from my account, but if they cannot access my bank account I do not see how they can deposit money into it. At any rate, they are now charging and I will be closing this account. I am so frustrated as I really need to retrieve my funds.
Verify your withdrawals during that time I noticed around three or four withdrawals which were not credited to my account Closed it and they are still withdrawing money from my Bank
My brother told me about Digit in early March. He had been saving since last September and had nothing but great things to say about the service. He explained a bit about how it works and said he had an issue come up where he needed $500.00 in hurry and had no problem getting the cash returned to his account. I mentioned it to my wife and we signed up the next day. You set up the amounts to save and the minimum you want your checking to go in the initial sign up to avoid over drafts. If your account overdrafts it’s likely something you did in the beginning. We haven’t had the first problem with the service and I would recommend it to anyone that has trouble managing savings. BTW, we’ve never been charged a service fee since signing up. Almost three months in and we’ve saved more than $650.00. I love it.
Tried to cancel my digit account. Withdrew the money last week and everything seemed to transfer into my account without any problems. This week I noticed that not only was Digit STILL withdrawing from my account, it was withdrawing much larger amounts. Like every single day! It withdrew $50 over the course of 3 days. That is way out of line.
I have withdrawn the money back to my account (which so go through over the next few days). Hopefully it has been closed at this point. We are buying a house within the next year and cannot have any overdrafts. I will be PISSED if something causes an overdraft.
I’m having the same problem with them still withdrawing money from my account even though I cancelled my account it’s very frustrating! I tried to redownload the app and login and now it won’t let me log in and it says I got $33 trying to email them back and forth going back and forth is very very very frustrating
I set my account not to be withdrawn from if there was $10 or less in my checking account. They still took out money and made my account go negative. Then I got an overdraft fee. This app sucks and costs you money rather than saving it.
I have been using the service roughly 2 years. I have no issues, cancelled due to new $2.99 monthly fee.
I would not recommend this service. They took out $10 for my first surprise transfer. Great. Worked like a charm. Two days later they took out $135. Apparently, their AI did not ‘see’ my pending payments for my monthly bills. They were clearly labeled as pending in my banking app. They had been pending since Friday when I scheduled them. They stayed pending over the weekend. They cleared Tuesday morning. The so-called micro transfer of $135 was initiated on Monday morning.
The app texts you with a perky message “Good morning, blah blah, your bank balance is $526.” Monday afternoon I get an email alert and a text alert from my bank telling me that I have $16 in my account. WTF? Monday evening Digit texts another perky message telling me what I already know.
I contacted them regarding their overdraft guarantee, since the f’d up. So far, no response. Needless to say, I closed the account.
Everything was fine. I had 2 goals set, a rainy day goal & a new house goal. Then I woke up to a $500.00 withdrawal, and upon attempting to return those withdrawn funds it would only allow so much. On top of all of that you can’t deal with a human. I closed my account. I also noticed that when I closed account the money being returned was not correct for one of the accounts and for the other there was a $30.00 manual withdrawal and I do not know what it was for.
How do we withdrawal money and when.
Via a text message, or within their app.
Digits apparently does charge a monthly fee of 1.99. When I signed up no mention of this fee was presented and is still not mentioned on their website. In fact “twice” on their site they say Digits is “COMPLETELY FREE.” Perhaps it is in the fine print but isn’t the bold customer-facing print supposed to mirror the fine print? This company is a FRAUD in this case.
I’ve seen that mentioned a few places, but with our test account have never gotten charged. I will contact the firm and ask this question.
In speaking with their PR rep and the new terms, they may charge a monthly fee and were testing out options. The terms do not disclose the exact amount. So I suspect they will be charging a fee. Based upon this decreasing the rating to three stars.
I keep getting text messages to “update my account” which I’ve done already two days ago. Does anyone know why I keep getting these messages? I really like the app but now I’m not so sure. I just signed up in Nov 2016 and have already saved over $200.
Same. I’d saved $250 in just a few months, so it was disappointing that it no longer worked. Customer service was terrible. Their solution is for users to close and then reopen accounts. I told them that connecting was their job and Engineering should be able to fix the problem. Asking customers to do the work is no solution. It’s evidence that they are failing. I closed my account instead.
How do you withdraw your savings? And are there any penalties?
By asking Digit via a SMS message. No there are no penalties.
I’ve got 401ks and IRAs and savings accounts and blah blah blah. I just signed up for Digit yesterday, and my hope is just to save up that 2 month “in case of unemployment” bumper. You know? Because for some reason, I just can’t manage to save up for “in case of emergency”.
How safe is it? I am concerned that the saved money could be lost in cyber space or stolen. How do you then access the digit money?
They have FDIC insurance, so you are protected via that method.
When I’m ready to withdraw money from my digit account how does it work?… & if I don’t like the service will it be easy for me to cancel it and for them to stop taking my money out my personal account?
Everything is done vis SMS or via their app.
How do you get them just to take out once a week instead of two to three days a week
There’s no option I’m aware of that can do this in Digit.
If you go to the dashboard there is a help tab , one of the questions is how do i cancel? It’s relatively easy to do.
We use Digit to save for family vacations. We love it! We save for retirement and rainy days with other accounts, but Digit is fun because we don’t miss the money it takes out, and by the end of the year, we have enough money (around $2000) for a nice family trip. So yeah, it won’t make you rich, but if you’re looking for a nice little savings for special occasions, like savings for vacations, clothing, etc, it works.
I set a goal of saving $300 a month but now cannot figure out how to change it? I found there is no way I can enter the amount besides text “save less”?
hated digit. Couldn’t regret using it more — caused me to overdraft my account within 3 weeks of using their service and did nothing to fix it. Terrible customer service!!!
I’ve been using Digit for a few months and have never had an overdraft. You can pause it if you think that you might get overdrawn.
It caused me to overdraft as well! I pay my credit card off at the end of each month, so I have about $1700 or so in my checking account at any one time. At first my average savings was small, but then it started taking out $70-$140 (!) every couple of days. I definitely DO notice this amount missing, Digit!! I have it on the least aggressive savings plan, too, so I have no idea why it is taking out so much. After this last withdrawal of $140, which caused me to overdraft since I also paid off my credit card, I immediately deleted my Digit account.
I love digit and their adorable text messages 🙂
Thanks for reviewing this new savings platform! Investor Junkie is my favorite investing & finance blog!
I was hesitant to sign up for digit.co but your review helped me decide. Digit is definitely for small, “unconscious” savings goals. And as their website explains it does not matter if they don’t pay interest (bank interests are too low to make any money off of small amounts anyway). The BEST thing about Digit is that you don’t have to think about the money being saved for you. After a year that could become a substantial savings without realizing it, or feeling the savings pinch. I’m guessing I’d be able to unconsciously save around $100-500. At that time I can move the money to a high-interest savings account.
I’m going to get some family members to sign up too (I get $5 for each person that signs up) and the money we pool together at the end of one year will be used to pay for a ticket to bring our sister home from Europe. She is just starting out her business there and doesn’t have money to visit home. I’m excited to start saving with Digit.
Just wanted to update my comment…The best thing I like about Digit is that they send you adorable texts that make me smile. The texts keep me updated about changes in my account and are friendly and sometimes funny. When I get a text from Digit, its like getting a text from a friend.
The pleasant experience I’m having with Digit is helping my brain to associate positive feelings with saving. I wonder if the creators meant for that to happen.
If I have Acorns would it be good to get this to ?
Have you tried to take your money out? Is it easy? No trouble or minimums?
No issues I have to report.
Thanks for the reply. I was a little hesitant because I’ve only read reviews about everyone saving, but no one has mentioned whether or not they were able to withdraw their money. Thank you so much!
How do you get your money out in case of an emergency?
It is as simple as typing ‘transfer’ within your SMS app.
I love it .I signed up on the 5th of october by the end of last month digit saved me $138. I withdrew it last week into my savings account with no problems .I received the funds today so it took a couple of days . I use my card alot so dont noticed the money missing. The most they have taken is $20 but then again at your pattern . Love it
“It doesn’t even pay you a small interest rate for using your money.”
Then forget it.
It actually pays in the form of savings “bonuses” now. It also ofcourse has the 5 dollars for every person you bring aboard. Yes while although there are more technically savvy ways of compounding interest in other riskier markets, this is not for that market. It’s for those who either can’t save if there lives depended on it, or just those looking to incorporate something different. I read these reviews and while although 2.99 a month now after 90 days seems like a hefty price, I’m one of those who couldn’t save if my life depended on it. This makes it easy. In just 60 days i have 800 dollars and am reaching real savings goals and they have kept true to their word thus far