Do you always tell yourself you’re going to start saving money, only to always end up short of achieving your goal?
When you’re living paycheck to paycheck, it’s hard to set aside an extra $20, $50 or $100 each week or month.
A new app called Digit understands that struggle. The app creators developed an advanced algorithm to pull little amounts of money from your checking account at a time and deposit into savings for you.
Digit uses an advanced algorithm to save you money here and there without you noticing. First it tracks your spending to see what you’re buying– a coffee here, a soda there– then it automatically starts pulling bits here and there and putting it into a savings for you!
Eugene Kim of Business Insider said the app analyzes, “The level of money in your checking account, upcoming salary, upcoming bills, and how you’ve been spending lately. With some banks, Digit can pull three years of transaction data.”
The whole point is to start saving without noticing a big amount being transferred over.
Digit guarantees it will never overdraft your account. “We believe so strongly in our math and the ability to safely identify money you don’t need that if we overdraft your account we’ll pay the fee,” Digit states.
How it works(From Digit):
Every few days, Digit checks your spending patterns and moves a few dollars from your checking account to your Digit account, if you can afford it. Easily withdraw your money any time, quickly and with no fees.
Digit automatically figures out when and how much is safe to save based on your lifestyle. Digit doesn’t require you to figure out an arbitrary amount to transfer every month.
When you signup for Digit you get your own Digit account which will hold any Digit savings until withdrawn. Any funds held in your Digit account are FDIC insured up to a balance of $250,000.