Digital Budgeting App Review – Forbes Advisor

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Budgeting can be a problem for some, but Digit aims to take the strain off you by automating the work of saving and investing. Digit does the heavy lifting for you, calculating the right amount to enter to meet your financial goals.

With over 297,700 ratings on the App Store and Google Play, Digit ranks among the top budgeting apps from Forbes Advisors in 2021 and is a great choice for consumers who want to prioritize savings and savings. investment.

Mobile apps like Digit can also help you pay off debt and prepare for a financially healthy future. Account details and fees are correct as of September 29, 2021.

Number and your budget

Digit is committed to helping you reach your short and long term financial goals. The app uses machine learning to analyze your linked bank account every day, accessing your spending habits and your balance. Then it automatically withdraws the money you can safely save and deposits it into the Digit account you specify, either the Digit Savings or Retirement Account. Funds from your Digit accounts can be transferred to your linked account at any time.

As part of setting savings goals, you can also identify debts, such as student loans or credit card debt, that you want to reduce, helping you to ensure your budget is resting. on a solid basis.

The Digit app savings account redirects to one or more banks, which are FDIC insured. Digit’s partner banks include Chase, Wells Fargo, BBVA, Luther Burbank, Bank of America and Axos. This means your funds are protected for up to $ 250,000 per depositor, per bank, for each category of account holder, in the event of a bank failure. The savings account pays a savings premium of 0.10% APY, which is paid every three months as long as you save for three consecutive months.

Security

Digit provides users with a fully encrypted application. When your information is transmitted between Digit and your financial institution, it is also encrypted.

However, the Digit app makes it clear in its terms that no method of transmitting or storing information is 100% secure.

Price

Digit is free for the first 30 days. After that, the fee is $ 5 per month.

To some, it may seem counterintuitive to pay for a budgeting app. But, if it adds value in helping you budget and meet your financial goals, the cost may be worth it.

Distinctive features

The selection of funds to invest in can be overwhelming. With Digit, you don’t choose individual actions. The Digit app matches users with a diversified portfolio of exchange-traded funds (ETFs) based on the user’s risk tolerance and investment goals. Digit also offers the option of saving for retirement with an IRA. The app makes sure that you don’t contribute more than what is allowed per year.

Since Digit performs automated withdrawals from external accounts, the app includes an overdraft protection feature. If your linked checking account falls below a balance you specify, you can have funds withdrawn from your Digit savings account to avoid overdrafts.

Access and assessments

Digit is available for iOS and Android. The app is currently rated 4.7 out of 5 stars on the App Store and 4.5 out of 5 stars on Google Play.

It is also accessible on the desktop.

Advantages

  • Automated savings and investment
  • Simple user interface
  • The savings account is insured by the FDIC

The inconvenients

  • Cannot transfer money directly from savings to investment
  • Free version only available for 30 days
  • Application functionality is limited to registration and investment tasks

How the number stacks up

Digit offers a simple experience for consumers who want to achieve their financial goals, focusing on saving and investing. Through automation, it removes manual labor, allowing users to passively achieve their goals.

Although the app includes debt repayment as a subject of savings, the app maintains its goal. There are no features designed for money management, expense reporting or analysis, or net worth tracking.

If you’re looking for a budgeting app that is all about saving money, paying off debt, and investing simultaneously, Digit is a great budgeting app to consider. With a modest price of $ 5 per month, the app may be worth it for some to avoid the drudgery of manually saving every month and making investment decisions.

Frequently Asked Questions

What is the Digit app and how does it work?

Digit is a budgeting app that applies machine learning to help consumers create their savings and retirement accounts. By withdrawing small amounts of money each day into an automatic Rainy Day Fund, the app helps users slowly but consistently reach their financial goals.

What is a budgeting app for?

A budgeting app can help you organize your finances, including bills, expenses, and cash flow. Some apps even help manage retirement accounts, invest, and build emergency funds.

Are budgeting applications secure?

Many budgeting applications are secure; however, none are perfect. Budgeting apps are a great way to organize your personal finances, but it’s important to research each app before entering your personal information.

When you visit a budgeting app website, be sure to research the types of security that the app uses. If it is a secure application, it will likely use security methods that include 256-bit encryption, biometrics, or multi-factor authentication.

What is the best free budgeting app?

The best free budgeting app is the one that works best with you and your budgeting needs. Each individual has different financial goals, so selecting a budgeting app that works well for your specific goals is essential. Mint and Personal Capital are two popular free budgeting apps.

What are the key elements of a basic budget?

Budgeting is a process that begins with identifying your financial goals and priorities for saving (and spending). When you know how much money is coming in and going out, you are much better prepared to face life’s expected and unexpected financial challenges.

How important are good budgeting habits?

While creating a family budget is the first step, what really makes it work is living your budget, not just planning it. The clearer your financial mindset and habits, the better your budgeting and investing efforts can serve your goals. If you have financial habits that you need to improve, the right app can help.


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