Digit - free automated savings

[r3dt4rget]

http://www.budgetsaresexy.com/2015/01/digit-review-save-money-fast-easy/
http://digit.co/

Just thought it was an interesting idea. Not much use for people with enough discipline to save, but since the majority of the US doesn't, I can see this taking off.

EDIT: decided to try it out for awhile, if you are interested in signing up here is my referral link: https://digit.co/r/AnQ4U

[deborah]

Terrible idea! Opening an account that automatically syphons money away from your other accounts could get you into serious trouble!

[Jack]

WTF is with the three paragraphs of sycophantic cheer-leading at the beginning of the article?

Otherwise, it's an interesting idea and sounds like it'd be useful for the sort of people who so badly need help saving that it's smart for them to accept 0% interest to do it.

[HipGnosis]

O.M.G!!
"All you do is attach your checking account and their robots do the rest – analyzing your income and spending patterns to figure out what amounts you won’t miss, and then xfering these amounts ..."

A) I don't want ANYONE (but me) to have access to my $$ accounts!! EVER!!
B) I don't have any respect or trust for anyone or anything that calls a computation a "robot"
C) I don't do any financial transactions with anyone that doesn't tell me EXACTLY how much is involved in all aspects of the deal
D) How do you keep your check book 'balanced'?
E) I do NOT want ANYONE (but me) to have access to my $$ accounts!! EVER!!

Definitely not for me.

[HipGnosis]

Otherwise, it's an interesting idea and sounds like it'd be useful for the sort of people who so badly need help saving that it's smart for them to accept 0% interest to do it.

Most people I know like that use their tax withholding and refunds for that - but then they spend ALL of the refund...  often as a downpayment on something.

[deborah]

So why isn't this in the Anti-mustashian hall of fame?

[r3dt4rget]

I'm trying it out just to see how aggressive it gets, and how it analyzes my spending to decide how much to save. I keep a pretty tight budget, trying to aggressively pay down debt, but anything it manages to sock away that I don't notice will just go towards the debt as well.

According to the website there is a "no overdraft guarantee" which they say covers the cost of any overdrafts caused by Digit.

O.M.G!!
"All you do is attach your checking account and their robots do the rest – analyzing your income and spending patterns to figure out what amounts you won’t miss, and then xfering these amounts ..."

A) I don't want ANYONE (but me) to have access to my $$ accounts!! EVER!!
B) I don't have any respect or trust for anyone or anything that calls a computation a "robot"
C) I don't do any financial transactions with anyone that doesn't tell me EXACTLY how much is involved in all aspects of the deal
D) How do you keep your check book 'balanced'?
E) I do NOT want ANYONE (but me) to have access to my $$ accounts!! EVER!!

Definitely not for me.

If you have automatic withdraws set up at places like Vanguard, or auto bill pay, it's the same thing. You give permission to this company to withdraw money, in which you are in complete control of. I have multiple companies with access to my account, and Mint/Personal Capital also request your bank info to link accounts. I don't see anything new or risky as far as security with digit. Your other points I agree with. I plan all spending in YNAB as my budget, so I will need to check digit and add in the transactions periodically.

[shotgunwilly]

O.M.G!!
"All you do is attach your checking account and their robots do the rest – analyzing your income and spending patterns to figure out what amounts you won’t miss, and then xfering these amounts ..."

A) I don't want ANYONE (but me) to have access to my $$ accounts!! EVER!!
B) I don't have any respect or trust for anyone or anything that calls a computation a "robot"
C) I don't do any financial transactions with anyone that doesn't tell me EXACTLY how much is involved in all aspects of the deal
D) How do you keep your check book 'balanced'?
E) I do NOT want ANYONE (but me) to have access to my $$ accounts!! EVER!!

Definitely not for me.

If you have automatic withdraws set up at places like Vanguard, or auto bill pay, it's the same thing.

+1. And any ATM is a "robot" which you are granting access to your account.  Digit is an online savings account insured by FDIC for balances up to $250,000.

[Grid]

What a price to pay for a lack of self-control...  0% interest on any money you save.

[Blonde Lawyer]

I could see it being useful if you let it "autosave" but then move that money over to your own savings account.  You would probably still have to pass it through your checking but two transactions aren't that bad so long as they are free.  Once a month move your money back and then you would keep earning interest.  It is certainly a unique concept.