Update: I recently made a small savings withdrawal.
Have you heard of Digit yet? Digit is a savings tool that can help make saving money painless and simple. I’d been hearing about it for months and decided to try it. I started my account on September 18, 2015, so it’s been 8 months now.
In 8 months, this is what has happened (as of 7:56 am 5/20/2016):
Digit has managed to save us $384.57 in the last 8 months. That may not seem like much, but it is $384.57 I wouldn’t have managed to save on my own.
We have two other savings accounts, one which gets a regular deposit when my paycheck is direct deposited, and another that gets a set amount from our main checking account each month, and a small deposit here and there when I think about it, so this isn’t ALL the money we have saved, but it was certainly the easiest.
How it works is you set up an account and connect Digit to your bank account. Digit analyzes your account to come up with an algorithm to determine how much to siphon from your account into savings without you noticing.
The first deposit Digit made to my account was $1.43. Sometimes the amount is only $0.25. Sometimes it’s more than $20. It just depends on the algorithm. We haven’t noticed the money coming out of the account – what I mean is we see it on the bank transaction list, but we don’t *feel* it. Our spending habits haven’t been affected and our bank account hasn’t been overdrawn.
The one real downside to Digit is you don’t earn any interest on your balance. This keeps the service free. However, if you’ve seen the paltry interest rates on bank savings accounts, you know that they’re just a smidge over 0%. Digit does incentivize a teensy bit: they offer a *very* small amount on balances over $100 if maintained for more than 3 months. I don’t remember the amount and it’s not even really worth mentioning. 5 cents per $100, maybe?
After 8 months I can honestly say I’m glad I signed up with Digit. I think you’d be glad you signed up, too.
Pros: Makes savings easy, savings are “out of sight, out of mind”, no app to download as everything is done via text message, or on the web if needed.
Cons: No interest earned on savings.
Bottom Line: DO IT. You’ll be glad you did.