![]() With the round up strategy, you’re spending more money to invest, right? This could be called a savings app, as long as the money you’re spending to invest makes money instead of loses money. The interest you earn on your Digit savings is pretty small, at least compared to the interest you’d earn with a high-interest online savings account with a bank. Keep in mind that this is different than your checking account at your bank.Ĭash that you have sitting in your Digit account doesn't pay interest. Here comes the tricky part: Money sitting in a savings account at your bank earns interest. Digit takes money from your checking account and puts it in your Digit account in small amounts so you can hit the goal you've set up, without doing any work. So what’s the difference between Digit and using a basic checking account to save up the $600? If you’re bad at budgeting for an upcoming expense, that’s basically what Digit does for you. You then set up a specific savings goal like “bachelorette party weekend,” an amount you’d like to save, say $600, and how long until you’ll need the money. Digit then analyzes your spending habits by looking at your checking account balance, paychecks or predictable income, incoming unpaid bills, and recent spending. When you download the app, you'll link it to your personal checking account. The idea here is for you to hit predetermined savings goals that you set up with Digit. For example, one of the most popular kinds of these apps are focused on personal savings- Digit, Acorns and Stash all promise to help you sock away money, and in some cases, even invest it, in an attempt to grow it.īut what's the difference between them? And which one's the best for you, and your digital piggy bank? Take a look below, and find out how you can start to build that nest egg you've always wanted, with the help of only your smartphone, our guide, and your own spare change.ĭigit's a savings app that moves small amounts of money from your checking account to your Digit account. The financial technology (or: “fin-tech”) industry is slowly stripping away the ways banks make money, leading to a growing group of startups offering services to help you manage your moneyīut with an explosion in choices, there comes some confusion along with it. For too long, the financial industry hasn't had much competition from the technology industry-and it's made it all too easy to take advantage of consumers as a result. The past few years have seen an explosion in startups aimed at helping you save, invest and spend in a cheaper and wiser way.
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