Digit app review: Easily set aside money to save for multiple goals

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.

Is Digit a good match for you?

Digit review

Annual Percentage Yield (APY)

0.10% APY

  • Pros & Cons
  • Details
  • Pros
    • Automatically pulls money from your bank account to put into savings, investment, or retirement account
    • No minimum balances or contributions
    • Set personalized savings goals
    • Unlimited withdrawals
    • Overdraft fee reimbursement
    • Low savings APY
    • $5 monthly service fee
    • Free for 30 days, then $5 per month
    • Looks at your linked bank account and spending habits to determine how much you can afford to put into savings, investments, or a retirement account daily
    • Earn 0.025% every 3 months (0.10% annually) on your average daily savings balance for the quarter
    • In the unlikely event that Digit withdrawals overdraw your bank account, Digit reimburses up to 2 overdraft fees
    • When you open a retirement account, choose from a Traditional or Roth IRA
    • When you open an investment account, Digit invests based on the level of risk you want
    • Savings balance is FDIC insured for up to $250,000

    Digit is a good tool for helping you figure out how much you can afford to save — and for helping you take action. You might like the app if you want to start saving or investing but either a) don’t know how to get started, or b) don’t want to spend the time or energy figuring out how much you can afford to set aside.

    You also may like Digit if you already save but suspect your budget might allow you to save more. Digit looks at your bank account balance daily to determine how much you can save, so you can save more money than you would have otherwise.

    However, Digit charges a $5 monthly service fee, and there’s no way to waive it. The APY on your savings balance is also fairly low, and you could earn significantly more with an online high-yield savings account. But if your main goal is to save as much as you can with automatic savings, you might decide downloading Digit is worth the tradeoffs.

    How Digit works

    You can use Digit to save in three types of accounts: savings (Member FDIC), investment, and retirement. The first 30 days are free, then you’ll pay $5 monthly, regardless of whether you open one account or all three.

    Each day, Digit scans your linked bank account and assesses your balance and spending habits. Then it automatically pulls the amount you can afford to save and puts it in a Digit account. In the app, you can set up how you want your money split between the savings, investment, and retirement accounts.

    Because Digit only withdraws what the algorithm determines you can afford, it’s unlikely the app will overdraw from your account. But if it does cause an overdraft, the company will reimburse up to two overdraft fees charged by your bank.

    In savings, you can set individual goals, such as Emergency Savings or Travel Fund. You’re able to move money back into your regular bank account whenever you want at no cost, and Digit allows unlimited withdrawals.

    Your savings account balance is FDIC insured for up to $250,000, meaning your money is safe should something go wrong and Digit shuts down.

    When you set up an investment account, Digit gives you a quiz about your risk tolerance, then uses your answers to invest in certain ETFs.

    To save for retirement, you can choose between a Digit Traditional IRA or Roth IRA.

    Is Digit a good investment app?

    This depends on what you’re looking for. Digit isn’t solely an investment app; it also offers savings and retirement account options. However, the platform could be ideal for those looking to invest strictly in passive funds like ETFs.

    Digit creates an investment portfolio for you and gives you the option to choose from a list of suggested investing goals (e.g., Build wealth, Buy a home, or Family) or build your own goal.

    As mentioned earlier, Digit also asks questions about your risk level. Your answers to these questions result in either a conservative, moderate, or aggressive risk portfolio.

    Is Digit trustworthy?

    The Better Business Bureau gives Digit a B in trustworthiness. The BBB measures trustworthiness by assessing a company’s response to customer complaints, honesty in advertising, and transparency in business practices. The BBB cites the volume of customer complaints as the reason behind the B grade.

    Digit doesn’t have any public scandals, though, so you may still feel comfortable banking with this company.

    How Digit compares to similar apps

    We’ve compared Digit to two other apps that set up automatic savings: Acorns and Chime.

    Digit review vs. Acorns review

    You might prefer Acorns if you want to focus heavily on investments and retirement. Acorns has an investment account, retirement account, and investment account for kids. Its checking account rounds each debit card purchase up to the nearest dollar and puts the spare change into your investment account. You can also schedule automatic transfers for a percentage of each direct deposit into the checking account to be moved into investments.

    Digit and Acorns both offer Traditional and Roth IRAs, but Acorns also has a SEP IRA, which is a good option if you qualify to open one.

    Acorns doesn’t have a savings account, though. If you want help saving for shorter-term goals, like a down payment for a home or an emergency fund, you may want to go with Digit.

    Digit review vs. Chime review

    Chime is a full banking platform with a checking and high-yield savings account. If you want to open new bank accounts, you might like Chime. But if you’re just looking for a tool to help you save some money here and there, you may prefer Digit.

    The Chime Savings Account pays a much better rate than Digit on your savings balance, and Chime doesn’t charge monthly fees. However, the platform doesn’t help you invest or save for retirement, so if you want help working toward those goals, Digit is the way to go.

    Laura Grace Tarpley, CEPF

    Editor, Banking & Mortgages

    Laura Grace Tarpley is an editor at Insider, responsible for banking and mortgage coverage on Personal Finance Insider. She covers mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips. She is also a Certified Educator in Personal Finance (CEPF). Before joining the Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at ltarpley@insider.com. Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services »

    Rickie Houston, CEPF

    Wealth-Building Reporter

    Rickie Houston is a wealth-building reporter for Business Insider, tasked with covering brokerage products, investment apps, online advisor services, cryptocurrency exchanges, and other wealth-building financial products. He is also a Certified Educator in Personal Finance (CEPF). Previously, Rickie worked as a personal finance writer at SmartAsset, focusing on retirement, investing, taxes, and banking topics. He’s contributed to stories published in the Boston Globe, and his work has also been featured in Yahoo News. He graduated from Boston University, where he contributed as a staff writer and sports editor for Boston University News Service. Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services »

    Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC.

    Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team. Read our editorial standards.

    Read More