by Dana Sitar, CEPF®, Carson Kohler
In the span of two and a half years self-described “bad saver” Matt Wiley managed to save $4,300 without thinking about it.
“It feels weird saying ‘I saved,’ because I really didn’t do anything,” he said.
Despite being an editor at The Penny Hoarder at the time, Wiley admitted he’d never been good at putting money away.
“I don’t have a good reason for why it has been difficult, other than I’ve never been good at forcing myself to put money aside to not touch.”
In early 2015, Wiley heard about a money app called Digit from one of his wife’s friends, who was already using it to build savings. Since its early days as the automated savings app that turned Wiley into a bonafide saver, Digit has expanded a lot to cover more than just savings needs.
How did Digit help this bad saver stash away more than $4,000 and can it do the same for you? In our Digit app review, we’ll cover everything the app has to offer to help you save, invest and manage your money all in one place — with, let’s be honest, the least amount of work possible.
In this 2022 review, we’re looking at the app’s full suite of features, including spending and savings accounts, investing, and money management tools.
When you sign up for Digit, you can choose just its saving feature, or you can open a Digit Direct account to access savings, checking and investing with automated money management features.
Direct is Digit’s deposit account backed and FDIC-insured by MetaBank. 
It takes the work out of managing your money by automatically setting aside money to pay your upcoming bills, working toward your savings goals and investing, then telling you your “available to spend” amount, so you don’t have to wonder whether you can afford the second latte you’re about to order.
You just tell Digit how much a bill is and when it’s due, and the app automatically moves money from your spending balance into your bills balance in small amounts throughout the month.
Digit doesn’t offer automatic bill pay within the app, but you can use your Digit account or debit card number to set up autopay with your biller. Through AI (and tweaks from you), Digit recognizes the payee as bills are paid, and it deducts the amount from the associated bill balance.
A Digit Direct account comes with a Visa debit card you can use for purchases and for ATM withdrawals. ATMs are free in the AllPoint network (which you can find at popular retail locations like CVS, Walgreens and Target), and you’ll pay $2.50 plus the ATM owner’s fee to use an out-of-network ATM.
Digit also uses your Direct balance to set money aside for savings goals and retirement investments.
To make sure you only save money when it fits your budget, you can set a minimum balance for your spending account. If you dip below that balance, Digit’s “overdraft protection” will take money from your savings account and replenish your spending account without charging an overdraft fee. (Note that the Direct account doesn’t include actual overdraft protection; if you try to make a purchase without the available funds in your account, it’ll be declined.)
You can fund a Direct account with deposits from a connected bank account and direct deposits but you can’t deposit cash.
You can use a Digit Direct account for $9.99 per month or $95 a year (20% savings). As the app transitions to this new offering, existing Digit savings customers can switch to the Direct account and continue paying $5 per month for their first six months.
Saving is Digit’s bread and butter. The app originated as an automatic savings app before bringing banking onto the same platform.
Unlike many savings apps, Digit also doesn’t force you to set an end target for your savings goals. You can add a target amount and end date for every goal, each optional; or you can leave them open-ended, like Wiley did, and save what you can.
You can set a maximum daily saving amount and a “safe saving level” — a minimum checking account balance — to make sure Digit doesn’t get more zealous with savings than you’re comfortable with.
You can use Digit just for the savings feature, connected to a third-party bank account, for $5 a month. Or it’s included if you open a Digit Direct account for $9.99 per month or $95 per year.
What’s special about how Digit helps you save money is that it doesn’t rely on you to budget and commit to a strict savings schedule that might not always work for you. Instead, it looks at the income and spending habits in your account and adjusts your savings amount every day.
“I was intrigued by the idea of an algorithm pulling money out of my account in ways I wouldn’t notice,” Wiley said. “I was working my first job out of college and basically living paycheck to paycheck, so I definitely hadn’t been putting anything aside. It seemed worth a try.”
If you use a Digit Direct account for your spending, the app will also see the bills you have coming up and set money aside for those before calculating how much you can afford to save.
Investing is a natural extension of Digit’s short-term savings features, and the options work similarly in the app.
You can set up a Digit Investments account with buckets dedicated to your long-term savings goals, like building wealth, buying a home or starting a family. 
Digit asks easy-to-understand questions to determine your risk tolerance and recommends a conservative, moderate or aggressive portfolio for you. Your money is invested in exchange-traded funds (ETFs) to grow while you work toward your goal.
Contributions to Digit Investments work like its savings goals. It’ll analyze your spending balance and make safe daily investments to your portfolio.
You can also set up a Traditional or Roth IRA to save for retirement tax free.
Because of the way retirement accounts are regulated, Digit only makes investments monthly, and you face the same contribution limits and withdrawal restrictions as with any IRA. It does, however, still set aside the money regularly from your spending balance according to the same saving rules.
Unlike more robust investment apps, Digit doesn’t facilitate individual stock trading. You can’t choose which stocks or funds your money goes into, just the general type of portfolio you want Digit to build for you, but you can see which ETFs your money is invested in.
There’s no way to open a Digit Investment or Retirement account on its own; the option is included with a Digit Direct account for $9.99 per month or $95 per year.
Digit started as a savings app and added banking and investing in September 2021.
It doesn’t currently offer other financial products, like loans, credit cards or insurance, but it wouldn’t surprise us to see those added in the future. The company was acquired in late 2021 by Oportun, a loan company focused on affordable loans and credit cards.
One interesting perk included with Digit’s bill management feature is credit card balance management.
When you set up a credit card bill in Digit, you have the option to link your credit card account through Plaid (the industry-standard platform that connects money apps with bank accounts).
If you do that, you can see your credit card balance and transaction right in the Digit app. The app will use your credit card’s current balance, statement balance or minimum payment — your choice — to determine how much to set aside for the bill that month.
This feature solves two major problems that exist with other money apps:
This feature, along with its flexible savings and investing features and “available-to-spend” balance, help people manage money by accounting for the real ways we interact with money, including things like irregular income and unexpected bills.
In a blatant deviation from competitors, Digit charges a flat service fee to use the app. You have two options:
Your first 30 days with either option are free.
For Wiley, the amount he paid to use the app was worth the $4,300 he saved without thinking about it or ever panicking about his bank balance.
“Way less than Netflix,” he said.
Digit doesn’t charge any other fees associated with some bank accounts, like overdraft fees or minimum balance fees. ATMs are free as long as you use an AllPoint network machine; otherwise you’ll pay a $2.50 fee plus anything the ATM owner charges.
You won’t pay any management or maintenance fees to Digit or its partner broker-dealer, DriveWealth, for Investment or Retirement accounts.
The money in your investment accounts gets invested into ETFs, which usually come with third-party fees that come out of your account balance. Those fees (referred to as an expense ratio) tend to be well below 0.5%, and you can find them by looking at your portfolio’s ETFs in the app.
When you open an online bank account, the quality of the app is key. It needs to be intuitive and easy to use. Digit checks both of those boxes.
The app is rated 4.7 out of 5 in the App Store and 4.6 out of 5 in Google Play, with hundreds of thousands of reviews.
Like any online bank account, Digit doesn’t come with physical locations where you can connect with a teller or customer service rep in person. But it’s online customer service is there for you. An online help center answers any general question you could have about using the app, and you can send an email if you have a question about your own account for a quick response.
Worried about turning your finances over to AI? Don’t be. The app gives you plenty of control to set boundaries on where and when it can move your money — and, anyway, letting it do its thing works.
“I’m definitely a fan of passive saving,” he said. “For people like me (he’s talking about all the Bad Savers out there), not having to think about it is the best way to save.”
Digit is for folks who want a money management solution that means they don’t have to think about managing money.
If you’ve struggled to set aside money, stay on top of your bills, start saving money for retirement or find success with a typical budget, this automated account could be for you.
Digit doesn’t offer joint bank accounts, so this isn’t a good option if you want to share an account with another user. It also doesn’t offer a way to deposit cash, so it’s not the best bank account for you if you’re mostly paid in cash.
Here are the biggest benefits and drawbacks of using Digit for savings, banking, investing and money management.
Here are our answers to some commonly asked questions to help you decide whether Digit is the right place to manage your money.
Dana Sitar is a Certified Educator in Personal Finance® who’s written about work and money for publications including Forbes, The New York Times, CNBC, The Motley Fool and a column for Inc. Magazine. Former The Penny Hoarder staffer Carson Kohler contributed reporting to this story.
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