Digit AI Powered Savings

We all know how important it is to save money, but for many saving is much more difficult an act to accomplish. Sure, you can set up an automatic transfer each payday or download apps that transfer the change from your card purchases.

For others, an AI-powered savings app might be a better option to save more without much thought on your part. Say hello to Digit.

What is Digit?

Digit is a mobile app and website that enables you to save money through artificial intelligence (AI) to determine how much money to transfer and save based on your spending history. The app and text message-based service transfer small amounts from your checking account into Digit. Digit analyzes what amount can be transferred on a daily basis.

Is Digit Safe?

Digit is a legitimate business and offers a trusted app used by thousands of people. From Digit’s FAQs, they use “state-of-the-art security measures. Your personal information is anonymized, encrypted and securely stored.”

All funds held within Digit are FDIC insured up to a balance of $250,000.

How does Digit work?

Digit looks and analyzes your spending patterns, bills, and checking balances. Then, Digit will transfer your money (a safe amount based on their analysis) from your linked checking account into your Digit savings account. The artificial intelligence (AI) looks at your transaction history to determine the safe savings transfer amount.

Auto-savings transfer amounts can vary based on checking account balances and spending history. It can be a few pennies or $20 or more.

You can let the Digit AI decide the amount to save or you can transfer any amount at any time too. There are no account minimum balance requirements.

• Digit savings accounts – Digit started as a single rainy day fund account but now offer additional savings accounts using AI to help you save for them. Set up multiple accounts for specific savings goals or for upcoming bills and expenses.
• Digit Savings Bonus – Earn a 1% annualized Savings Bonus paid every three months.
• Goalmojis – save for specific goals using emojis
• Mobile app – Perform banking transactions through a mobile app on iPhones and Android phones.
• Text Messaging – Communicate with Digit’s service via text (SMS) messages. View your balance, initiate withdrawals, save extra money or viewing upcoming bills, without using a computer. There are dozens of easy commands you can use to interact with Digit text messaging.

Digit offers a no-overdraft guarantee. In the event, your checking account is overdrawn due to auto-savings transfers, Digit will refund the fee up to two occurrences.

There is no withdrawal limit and you can transfer from your Digit savings account back into your checking account as many times as you want.

What are the fees?

Digit charges $2.99/month to use their artificial intelligence software and automatic transfers to help you save. The $2.99/month fee comes out of your checking account, not your Digit savings account.

Is Digit a good idea?

Paying $2.99 a month for a savings program may seem a lot to those who have very little savings. However, the app is most helpful to those are in that exact situation.

With Digit, you don’t have to wonder if you have enough money in your checking account to put towards a savings goal. The AI will determine these amounts and can help you “unsee” available money. This might help you from overspending. Basically, the money will be out of sight and out of mind as it sits in your Digit account and not in your checking account.

Digit will transfer money before you have the chance to spend it which is a good thing for those who need to start saving for their rainy day funds, emergency funds, and other savings goals.

Again, paying $35.99 for the year ($2.99 x 12 months) may not be costly if you’re saving less than $100 in the year. However, if Digit can help save money you’d otherwise spend mindlessly, then it can be worth the expense.

Is there an alternative to Digit?

A cheaper option is to set automatic transfers each payday from your checking account into various savings accounts. However, you’ll need to determine the amount to transfer into your savings accounts. This can be done through a budgeting process to determine your net cash-flow.

How to get started with Digit