For those attempting to save money and avoid credit card debt in 2015, it looks like the new “Digit” app might be the perfect new addition to your smartphone and bank account.
For consumers that struggle with managing their money and feel they are completely unable to save, the new Digit app might be the perfect solve for you. Here’s some info on how it works:
1. You sign up.
2. Link the program to your checking account.
3. Let the app do its work.
But How Does it Work?
Every few days the app uses an algorithm to look at your spending habits, your cash flow, and all vital expenses. Then it synthesizes all that info and withdraws a few dollars into your Digit account. No worries, the Digit account is FDIC-insured up to $250,000. The withdrawals are so small that you’ll barely notice – until you take a look at your Digit savings account balance. That’s when the true magic happens. All that money you barely noticed becomes a full-fledged savings account.
If you need to withdraw from your savings account, all it takes is a simple text message that contains the amount. The funds are transferred back to your checking account within a day.
Digit is a free app. All of its transfer and operating costs are paid for by the interest it earns saving users’ money at the banks it partners with. Because of this, you do not receive interest on the savings you put away, but that is in its plans for the future.
Source: Inquistr, Digit Is The App For Anyone Who Stinks At Saving Money, February 20, 2015