Posted byon August 21, 2015
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Digit is an automated savings tool. While that sounds a little boring on the surface, I’m intrigued by the math that is running the show.
Essentially Digit is analyzing your spending daily and calculating how much they can “painlessly” transfer to savings, little by little each week.
Digit states their free service is a “journey aimed at refreshing the interactions between humans and their money”. Let’s celebrate the Digit journey for Free Money Friday!
How Much and How Often Will Digit Transfer? The frequency and amounts of transfers vary by person, taking into account pay days, rent, recurring bills, spending patterns, and average balance. Digit says that most people see 2-3 savings transfers per week and the amount is typically between $5-$30. The minimum is $0.05 and the maximum is $150, which they state is extremely rare.
0% Interest. The Digit account earns 0%. Obviously, this is going to have to improve.
Withdraw Money. You can withdraw the money at any time, but it only goes back to the account it started from. To transfer it back, you just send a text.
No-Overdraft Guarantee. Digit is backing their math and ability to identify the money you don’t need. If they do create an overdraft, they will pay the fee. I love this feature since I have huge swings my balance because of manufactured spending. If Digit can figure this out correctly, I’ll be impressed!
Referrals. You can refer your friends and get $5 for each friend.
Have you used Digit? If so, how much have you saved so far?