Editor’s Note: Overdraft Apps provides detailed product reviews and recommendations based upon extensive research and our own hands-on testing. We may earn a referral fee when you sign up for or purchase products mentioned in this article.
Digit helps you save money automatically by scanning your checking account and putting small amounts of money into a “Rainy Day” account. You will receive 1% annual interest (paid out every 3 months) on all the money in your new account. Digit costs $5/ month, with the first six months free. While Digit doesn’t tackle overdraft issues directly, it helps you save enough money to avoid them in the first place. If you have trouble saving, we think Digit is a great solution for you!
- Financial Planner App
- No cash advance
- Available to anyone with the app installed
Editor’s Score: 3.5/5
Automated Savings with the Digit App
Like many applications in the overdraft app space, you will need to connect your checking account to Digit using your banking credentials. Once connected (an easy process), Digit’s algorithm will monitor and scan your account every few days; it will then decide how much money to safely transfer to your new savings account. Don’t worry about the app losing your money because your money is FDIC insured!
Digit usually “saves” between $5 and $50 a month. While some of the process can be controlled through Messenger-style chatbot, many users complain about the lack of transparency behind their calculation, the data they have access to and the control they have over your money.
Regardless, you can request your money (any amount) and it will be deposited into your account within 24 hours.
Pricing
Subscription fee of $5/month
Score: 3/5
Digit costs $5 per month (after six months days of trial). Though it isn’t free, you receive 1% on all money saved, so depending on how much you save Digit might pay for itself.
Features
Not directly tackling the overdraft problem
Score: 2.5/5
Digit is an automatic saving and budgeting app. By putting money aside in a separate account, you prepare for rainy days: unexpected expenses (which could trigger overdraft or NSF fees), pay cuts, medical emergency etc.
Summary
We really like the Digit app, but we urge those of you thinking about signing up to do a basic calculation before making a commitment. Digit costs $5/ month, or $60/ per year. At 1% interest on all money saved you will need to save $3,600 dollars annually for the app to pay for itself. If you think you will save $3,600, or if you have trouble saving money on your own, Digit is a great app for you. In a pinch, the savings they put away for you can help you avoid overdraft fees, or other financial crisis. However, if it is a cash advance that you are looking for, we should consider the Even app, apps like Dave or Earnin.
Watch: How does the Digit App work?
WAIT! High overdraft fees aren’t the only way your bank is costing you money.
With inflation overheating, you’ve probably heard that interest rates are climbing sharply. That means that for the first time in years, it’s a great time to shop around for a high interest savings account.
The national average interest rate for savings accounts is currently 0.23% APY – that means that if you have $2,500 in a savings account, you’d earn just $5.76 after one year! Move those hard-earned savings to an FDIC-insured bank paying 3.50% APY and you’d earn $81.73 more!
Don’t let your hard-earned savings sit there doing nothing. Check out the rates that you can earn at other banks:
Mitchel holds a Bachelors of Business Administration in Finance from The Goizeta School of Business at Emory University and a Masters of Business Administration from The Haas School of Business at The University of California.
