Is Digit app a scam? Each one of us needs to learn the value of money. Money doesn’t come from trees, and one way to know and appreciate the value of money is through saving.
We all know saving can be a pain in the ass. Whenever we see something we like while we are strolling in the store, we itch to purchase it and have it in our possession. Then you say to yourself, “No! I need to save money!” Come on, who are you kidding?
When saving money, it gets harder when you consciously think that you ARE indeed saving money. Most of the time, this method is not effective and will just get you tempted to reach out for your wallet.
Some of you may already be experts in the saving game, and most of us just need an extra nudge.
The Digit App is made for people like us who can’t effectively save, and it swears to help you save without even having to think about it!
So, is Digit App a scam? That’s what we are going to find out today in this review. In this review, I am going to take you behind the curtains of Digit App, how it works, and most importantly, if it really works.
First, let us know what Digit App is all about.
Hello Digit, Inc. was built from dust in 2013, managed by Christopher Wilson and Ethan M. Bloch. Both of them worked together and formally launched the Digit App back in 2014.
It is relatively new in this niche but it has been working ever since 2014 to give people an innovative way of saving.
This automated saving service, Digit, is available for Android and Apple users that makes saving a breeze since it automates your process of saving money, without having you to even think about it.
Before you can benefit from this app, you have to download the app first and then link it to your checking account. You don’t even need to have your own savings account, because Digit will open one for you with one of their partner banks.
Even if you sign up for Digit with a savings account, take note that you are only restricted to withdraw 6 times per month which is not advisable if you have Digit using all that up.
You can choose to go to their website, digit.co, and sign up for free. Note that signing up is free, but using the app requires you to pay a monthly fee of $2.99. However, they do give you the option to try out the app for free within 30 days.
Another way in which you can sign up is by simply downloading their app on the Google Play Store or Apple Store. May I inform you as well that Digit is only available to US residents.
You download the app and then link it to your checking account. In order for Digit to work and serve its purpose of helping you passively save money, it first has to analyze your spending patterns.
With the use of an algorithm, it analyzes how much money enters your account and how much money leaves your account when you spend money. It also takes into consideration when all these transactions happen all throughout the month.
When you first log in to Digit, the app will prompt you to fill up information on how much you want to save and when do you need your savings by.
With the information that they gather, they will know how much money they will deposit in the savings account they opened up for you. They analyze your spending habits every two to three days. The amount of money they deposit into your account ranges from $5 to $50.
The downside is here that if you want to check and transfer your balance from the savings account to your checking account, Digit does not let you do it with the use of their app. As unnecessary as it may seem, you have to send them a text message first. But don’t worry! You can transfer money any time you want and all the time you want. Digit lets you do that for an unlimited number of times.
Plus, you do not even has a threshold to worry about since there are no required minimum balances.
The Digit app also gives you incentives for referring it to your friends, family and co-workers. They also reward you for constantly depositing money to your savings account.
You might be thinking, where does the extra money that Digit deposits into your savings account come from?
The money basically comes from you because they always take little opportunities in which they squeeze money from the cash flow in your checkings account. This is where all the automation happens because Digit processes the information regarding your spending habits and only sets aside what you can afford to save without sacrificing money for your needs. This money does not really go anywhere since you can claim it again by sending them a text message.
How does Digit make money out of all this? For one thing, they make you pay $2.99 per month. Also, they keep the interest earned on your money while it is being held in Digit’s system which is FDIC insured for up to $250,000.
Lastly, if you have saved money with the help of Digit for three consecutive months, you could earn a bonus of 0.20%. Save money through Digit for the rest of the year and you can get an annual bonus of 1%.
Savings? Oh Yeah! The App!
You don’t even have to think that you are saving money. Let’s face it, trying to prevent yourself from spending and thinking to yourself that you are saving does not really work nor end up well. All you have to do is spend and earn money like how you would do so, let Digit produce an algorithm out of this, and let it stash some money from your checking account to your Digit savings account. Then, when you need the money, all you have to do is send them a text message. Pretty cool, huh?
No Need for Your Own Saving Account
You do not even have the need to open up your own savings account, Digit does that for you. Your savings are also FDIC insured up to a balance of $250,000. So you can rest assure that your money is kept safe elsewhere, somewhere you can’t reach for easily when you are itching to buy that new limited edition watch. Nice try, bud.
Not only can you save money, but you are also making money. Digit gives you incentives for referring your friends and getting them to use the app. You are given an annual bonus of 1% when you use the app on a constant and consistent basis, as well.
Digit guarantees that while you are saving, they will not overdraft your account. If they do, however, they will compensate your fee up to two times.
This is what Digit promises you, though. However, is a pinky swear really that hard to keep? This brings us to the next section.
More Like Overdraft Guarantee
Welp, yeah. Digit did say beforehand that there is a possibility that your account may be overdrawn and that they will be responsible for that. But, if this problem keeps resurfacing not just once or twice, this a big problem. Most Digit users complain that their account have not just been overdrawn once, but several times already. Due to this, users are forced to pay their bank overdraft fees.
Not For People Who Get Paid Monthly
Being paid weekly means that Digit can analyze that cash flow and squeeze possible savings out of it by the week. However, most of us get paid only once a month. If this is the case, Digit will take money from your savings account by the month. This could take a toll on your budgeting.
Unusual Expenses, What?
If you splurge out a few hundred dollars on a new microwave, chances are Digit might not be able to process that information. Since the algorithm they create is to observe and analyze your spending habits, a sudden warp in this might not allow Digit to do its job properly.
Not everyone saves money by the same amount. Some of us want to save more while some of us tend to save less. Digit offers you that option, but unfortunately, it is not working anymore.
Of course, Digit needs money so that they could run the programs and algorithms. However, how do you make saving logical when you have to spend money so that you could save? Plus, this fee is expensive compared to other apps with the same premise and purpose as Digit.
Only Through E-mail Please
When we want answers and customer service, we want it fast and quick. One of the fastest ways of acquiring this is through calls. Unfortunately, Hello Digit, Inc. does not give you that option. If you want to seek for assistance, you would have to ask for it only by means of email. It could take days for Hello Digit Inc. to answer your inquiries, thus, making their customer service a flop.
If you really have a big problem when it comes to spending, why don’t you give Digit a chance? It is easy to sign up, and all you have to do is be yourself, and have your money be stored aside without you even thinking or sweating about it.
I do recommend Digit. However, it is not something I can recommend to everyone. For me, I don’t think the extra $2.99 a month is worth the shot just so you could save. If you continuously use the app for a year, that’s already the amount of money you could save within a month. You don’t need somebody else to hold your money for you, you just need to instill discipline in you so that you can save money more effectively in the long run.
Final Verdict, Is Digit App a Scam? NO! However, instead of saving pennies, why not focus on make real money online?
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