Digit Finds Extra Money in Your Budget and Saves It Automatically
If you want to save more money, automating your savings is the best option. Digit takes it one step further by calculating how much you can afford to save every few days. As your income and expenses change, it automatically adjusts your savings.
Digitally link to your online accounts and then communicate with you via text message. By analyzing certain factors – for example, spending habits, income, and upcoming bills – the tool calculates how much money you can afford to set aside. He then transfers this amount to your digital account. It won’t bring any interest, but you can withdraw money whenever you want.
I first read about this service on Budgets are Sexy, where blogger Jay Money interviewed Digit founder Ethan Bloch. Bloch says the tool checks your linked account balance every few days and takes into account a number of factors, including:
- Is the balance high or low depending on how the person makes and spends money?
- Do they have any invoices due in the next few days?
- Will they have income in the next few days?
- How much money did they spend yesterday?
- How much did they spend in the previous few days?
- How much have they already saved this month?
From there, Bloch explains the purpose of the service:
After answering questions such as these, Digit then tries to get a small amount of money that it knows you don’t need, but more importantly, may not feel like it isn’t, based on recent spending and income.
They also have a “no overdraft” guarantee, which means that if they accidentally overdraft your account, they will pay all fees.
It is very easy to set up. You sign up, then link your accounts and subscribe to text messaging. They will text you with your checking and digital balances every day, but if you don’t like it, you can ask them to stop.
I decided to just check my balance online periodically. I saved $ 43 in about a week. This doesn’t seem like much for a week, but keep in mind – these are additional savings on top of my regularly automatic savings. So while I thought I was squeezing everything out of my check, it’s nice to see that I can save about $ 7 more per day by not skipping them at all.
In terms of security, they use bank-level security to keep your information encrypted and protected. Bloch told me that they do not store your bank login and password, and while they store your account number, they use asymmetric cryptography to protect your information. You can read more about their privacy policyhere .
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