What the heck is Hello Digit and how can they Help You Save More Money?
Saving money can be a challenge, it’s so much easier to spend money than it is to save money (it’s also more fun). Saving money may not be as sexy as a new outfit or something to show off. Of course, saving is one of the most important parts to good financial skills, after all it’s not how much you make but rather how much you save. Digit is a company that makes saving amazingly easy, I like them because they add digits (and eventually commas) to your bank account automatically. You don’t even have to think about it.
If you have questions, more on how digit works below.
I use to love buying new things. But i’ve found out something interesting since becoming a saver. You’ll find this too, that it will be addicting once you get good at it. You’ll just get excited as you see your account balance hit a comma, then 5 digits and so on, it’s like a game. Now I don’t mean be so cheap where you strangle yourself, but don’t waste money on pointless things – or do just save a tiny bit it’s your choice!
Our whole monetary system is based on keeping the consumers (you) spending and going into debt. In fact, money is created when banks issue loans.
So how do we start to break this cycle and get saving started? Because once you get use to saving you’re going to love how you feel. You’ll no longer be scared to look at your bank account – you’ll love it! You wont have to worry about paying bills – they are all on auto pay. Life is so much easier when you take out the financial stress.
So how can we get there?
One of the major problems with saving normally is that it’s easy to “cheat” and just takeout a little bit, you know, just take out $20 here, $30 over here and so on. So what’s the sure fire cure to this?
What is Digit?
Hello Digit is the name of a rather interesting company. Digit aims to help people save more money and they have a pretty unique way of doing it.
Digit automates the savings process by taking out a small amount of money -you control how aggressive the saving withdrawals are – and they move the money to a separate account. While it’s not your personal account you can get the money back any time you want.
How Does Digit Work?
Digit works by you connecting a bank account which they analyze your spending and income. Digit then runs some tests and their computer decides an amount of money you wont miss and moves it into a separate account – your digit account – as a savings vehicle. They will never overdraft your account so don’t worry. In fact they have a no overdraft guarantee!
Saving money automatically with digit however wont make you rich. But it is a great way to put away extra money every month so you have a nice amount to fall back on in tough times – an emergency fund. Or save money for a vacation or toy you’ve been wanting. Saving money is very important, many Americans are living paycheck-to-paycheck with no savings, this is a very stressful situation to be in. Many of these people would have a massive decrease in stress which will keep them healthier if they managed to save a little bit every month.
Digit understands that a lack of savings in people’s personal finances holds people back from many things and leads to increased stress and health/family issues. A lack of savings stops average hardworking people from doing things they like, working jobs they like, and so on. Digit wants to change all that, digit does everything via SMS (text messaging) you send digit a command, say: withdraw $x.xx and they will take a specified amount (by you) and place it back into the account you connected, in one business day and no fee. You can even pause the automatic withdrawals for a specified amount of days up to 30.
Digit also texts you daily (or set up a frequency) on your banks account balance and it says click to find out why it changed. So this will help people find out where their money is going. One of the great things about digit is they are totally 100% free to use! Digit also has no monthly account fee.
How to Use Digit?
Update for 2017: Digit now has an app. You can get it from their official website.
Digit functions by text messaging, it’s actually very easy to use. For your convenience here is a list of their commands:
- Commands – Lists common commands for easy remembering.
- Checking – View your checking balance.
- Recent – View your recent checking transactions. You can text “R” as well. You can also add a number like “Recent 5” for your last 5 checking transactions.
- Save – Move money into your Rainy Day Fund. You can also say things like “Save 10” to save $10 to your Digit account. When within the ‘Save’ conversation, before you confirm the transfer, you can text ‘Cancel’ to change your mind.
- Save More – You can text this command up to 3 times to increase Digit’s savings aggressiveness. This will increase the amount that Digit attempts to save for you in a given day.
- Save Less – If you’ve increased Digit’s savings by texting “Save More”, you can lower it back down by texting “Save Less”.
- Minimum – This will allow you to set a minimum level under which Digit will not attempt to save for you. (Example “Minimum 100” would set Digit not to try to save if your checking balance is under $100)
- New Bill – This will allow you to save towards your monthly bills through Digit. Learn more about Goalmojis in their knowledge-base.
- Change Bill – You can change the amount or completion date of an existing bill.
- Withdraw Bill – Withdraw from your active Bill that you’re saving towards.
- Cancel Bill – You can cancel an existing bill and automatically transfer any funds saved towards the bill back to your checking account.
- New Goal – This will allow you to create a unique savings goal within Digit. Learn more about Goalmojis
- Change Goal – You can change the amount or completion date of an existing goal.
- Withdraw Goal – Withdraw from your active Goal that you’re saving towards.
- Cancel Goal – You can cancel an existing goal and automatically transfer any funds saved towards the goal back to your checking account.
- More – You can text this after using “Recent” to see either more times that Digit saved for you or more recent transactions. If you used a number like “Recent 5” and text “More” you will receive 5 more transactions.
- Savings – View a complete breakdown of all your savings within Digit. This will show your Rainy Day Fund, as well as any Goals or Bills that you’re saving towards. Tap into a fund in the app to see a breakdown of that specific fund.
- Today – See what Digit’s savings activity for the current day is.
- Withdraw or W – Make a withdrawal from your Rainy Day Fund. When within the ‘Withdraw’ conversation, before you confirm the transfer, you can text ‘Cancel’ to change your mind.
- Withdraw X – You can also include an amount such as “Withdraw x” where x is a dollar amount you wish to withdraw from your Digit account. So if you wanted to withdraw $25 you’d just text “withdraw 25” to digit.
- Help – Access the Digit Help Center and Digit Support contact.
- Pause – Pauses Digit’s automatic savings, after prompted you put in how many days you’d like digit to pause savings for (1-30).
- Resume – If you had previously paused the automatic savings and want to save before your specified end pause date, then this command will resume it the next day.
- Nickname – Changes the name which the text messages, app, and website address you by.
- Notifications – Adjusts the notifications of account balance updates.
- Refer – Retrieve a special referral code from Digit that earns you $5 per friend who signs up for Digit.
- Stop – If you want to stop receiving Digit messages
- Start – If you want to start up Digits messages again.
- Timezone – This will allow you to select your timezone. Digit updates will be sent at 9am in your local timezone.
- Vcard – This gives you a friendly Digit contact card for your phone’s contacts.
*I originally wanted to put these alphabetically due to my OCD however that was much harder to follow along so I grouped by relevancy and the alphabetized; sorry about that.
One thing that cracks me up with Digit are their text messages. They text you daily (you can change that) on your account balance and use a different greeting nearly every day! It’s nice to have something keeping you updated with your account and I’ve found digit does it better than my bank! In fact I made a purchase with the wrong card and digit texted me saying I usually have pending credit card payment of $40.00 and my balance was $25.34. So I made sure to transfer some money over to my “bills” account within my bank before this payment hit.
How did it know that? I assume its because it was a regularly occurring payment on the 14th of every month and digit saw that it was the 12th and I didn’t have enough money in there. I was not expecting this nice alert but damn it was sweet!
Lets get into the nuts and bolts of this digit review.
How Much Does it Cost to Use Digit?
As of April 2017 Digit now charges $2.99 a month to use. Which quite frankly makes me a bit unhappy. However for the first 100 days it’s still free to use, however here are still no fees. So the price is decent, as far as what’s in it for you? They offer you a fantastic way to create a huge savings over time! One of the ways I recommend to people to help with getting a savings going is to create a separate bank account that their money gets put into so they have to “work” if they want to spend it. The reason that works is because if the money you want to save is separate from your main account you’re less likely to spend it.
So it seems digit offers you all the above without the hassle of setting it up and managing it.
Is Hello Digit Safe to Use?
Digit uses state of the art security measures and all funds they take from your account is held in an FDIC insured bank account. So digit is as safe as your bank. However some people might not like letting a 3rd party access to you bank’s login information and if that is you then definitely don’t use them. For me i’m fine with it because it’s insured. But the short answer is yes digit is safe to use and no they aren’t going to steal your money.
Since you connect your bank account can they steal your money?
To reiterate – I’m sure this is something people might be asking and the answer is No. This is because they are regulated and the simple fact that they wont make any money is accounts start getting hacked. Not to mention they will be in huge legal trouble. I have used digit for several months now and everything is working as it should. They have also been mentioned in high profile publications. Check it out here.
Does it Cost Money to Withdraw From Your Digit Account?
No, they do not charge you any fees for withdrawing your balance, any amount or frequency. Just text them “withdraw”. Once you have specified an amount the money will be in your account the next business day (if you initiated it before 4pm or 2 business days after 4pm).
What I Like About Digit
- It’s Free and Very Quick to Sign Up
- $0 Account Maintenance Fee
- You can pull your money out at anytime – again no fee
- They use SMS as opposed to calling, emailing, or any other annoying time consuming method.
- They reward you for leaving your money in savings by offering .20% APY after every quarter! (that’s more than my checking account at my credit union)
- The leadership seem like really nice and helpful people.
- Their new way of helping people to save money seems like it will really help out people to save money not only for toys but also help them set up a emergency fund.
- They text you balance alerts of your connected account and ask you to find out why it changed by $x.xx so people track their money better.
What I don’t Like About Digit
- The frequency of automatic withdraws is a little too often. I average 2 days between them and my average amount is $6.70. – Edit: You can now change how aggressively it saves.
- The website has almost zero functionality.
- Costs $2.99/month after 100 days
- Low interest
- The bonuses they pay (for referring a friend) is only paid by a gift card or deposit to your main bank account. I did not see an option to your digit account.
Final Verdict on Digit
To conclude this Digit Review, I think they have an amazing idea. You won’t get rich using digit to save money, however you will be able to save up a decent amount.
While it would be hard to save up money for a decent downpayment on a house or to buy a nice car with cash, it’s not a bad deal. Any money saved up is better than none and while I don’t like the $2.99 fee very much, I do understand they have many expenses now especially as they grow.
I think $2.99 is okay to spend to save money, also they do pay a small amount of interest to you every quarter which will help lower the real cost some.
I think this is an amazing way to help our saving crisis. If you’ve read our other articles then you know most people can’t cover a$400 emergency which is a problem and digit is going to help a lot of people out. They offer a lot of nice features and are totally free which is highly unique! That is different from most apps that are “free” to join but in order to do anything they have lots of fees..Not digit! I have had an account now for over a month and I have zero complaints, but i do have a lot of extra money saved by them! I highly recommend you add this to your life, you literally have nothing to lose!
One thing I would highly recommend is after a certain point pull your money from your digit account and put that savings into some type of investment account or anything to get a higher return on the money than digit pays you. But it is nice having money that you “forget” about.
Digit Is Hands Down The Best Tool To Use To Save Money
Make sure you click the button below and get started! I think you’ll find it pretty awesome!