Digit is a mobile app that helps you save money effortlessly. With their bank account feature, you can earn a high interest rate on your savings and also get access to a debit card. In this review, we’ll take a closer look at Digit’s bank account and see if it’s worth considering.
Features
The Digit bank account comes with several features that make it stand out from traditional banks. Firstly, there are no account fees or minimum balance requirements. This means you can save as much or as little as you want without worrying about monthly charges.
Secondly, Digit offers a high interest rate on your savings. Currently, the rate is 0.10% APY, which may not seem like much, but it’s still higher than most traditional banks. Plus, the interest is compounded daily, which means your savings grow faster over time.
Thirdly, Digit provides a debit card that you can use for purchases and ATM withdrawals. The card is issued by Visa, so it’s accepted at millions of locations worldwide. You can also use the card to withdraw cash from any ATM that accepts Visa.
How it Works
To open a Digit bank account, you need to download the app and sign up. The process is quick and easy, and you’ll need to provide some basic information like your name, address, and social security number.
Next, you’ll link your existing bank account to Digit. This is how the app knows when to transfer money into your Digit account. Digit uses a sophisticated algorithm to analyze your spending patterns and income, and then calculates how much you can afford to save each day or week.
The app will then transfer small amounts of money from your linked account into your Digit account. This process is called “digitizing.” The amount is usually between $5 and $50, depending on your spending patterns and income. You can customize how much you want to save each week, or you can let Digit handle it for you.
Once your money is in your Digit account, it earns interest at the current rate. You can withdraw your money at any time, and there are no fees or penalties for doing so. You can also set up savings goals and track your progress within the app.
Pros and Cons
Like any financial product, the Digit bank account has its pros and cons. Here are some of the main ones to consider:
Pros:
- No account fees or minimum balance requirements
- High interest rate on savings
- Debit card for purchases and ATM withdrawals
- Automated savings based on your spending patterns and income
- Customizable savings goals
Cons:
- No physical branches or in-person customer service
- Only one savings account per user
- No joint accounts or beneficiary designations
- No overdraft protection
Customer Support
Digit offers customer support via email and in-app messaging. They also have an extensive FAQ section on their website that covers most common questions and issues. However, there is no phone support or live chat available.
Overall, customer reviews of Digit’s support have been positive. Most users appreciate the quick response times and helpfulness of the support team.
Security
Digit takes security very seriously and uses several measures to protect your account. Firstly, they use bank-level encryption to secure your data, and all transactions are processed through secure servers.
Secondly, your deposits with Digit are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). This means that if Digit were to go out of business, your money would be safe and you would be reimbursed up to $250,000.
Thirdly, Digit offers two-factor authentication (2FA) as an extra layer of security. This means that you’ll need to enter a unique code sent to your phone or email to access your account.
Conclusion
If you’re looking for an easy and automated way to save money, the Digit bank account is definitely worth considering. With no fees or minimum balance requirements and a high interest rate, you can grow your savings effortlessly. Plus, the debit card makes it easy to access your money when you need it.
However, if you need in-person customer service or want more than one savings account, then Digit may not be the best option for you. Overall, it’s a great choice for anyone looking to simplify their savings and earn a higher interest rate.