Anyone using Digit Savings?

[toxicavenger]

Thoughts?
http://techcrunch.com/2015/02/19/automa ... up-to-all/

[jtbenson]

"non interest bearing account"

no thanks. money likes making interest.

[toxicavenger]

"non interest bearing account"

no thanks. money likes making interest.

yeah I think they are making interest off of your cash basically and not paying you any of it. but they are taking small amounts out of your account and basically hiding it for you until you need it.

I read that they might be changing that soon and give you some interest back but until then I am not so sure about it.

[jtbenson]

i forget the bank, but one of the big ones had a program that you could opt into that would round up all your debit card transactions to the next even dollar amount and automatically transfer the difference into your savings account. savings accounts don't earn much more interest than zero these days, but in principle alone i'd feel better about it if i was just looking for some "blind help" in socking away some savings. this one i like as you know when and how much is getting socked away.
basically, it's just salami slicing, like in superman iii, hackers office space.

[gwells]

20 years ago, this may have been useful as minimal forced savings. but being out of "paycheck to paycheck" life and out of debt means saving intentionally now is a lot easier.

[foodle]

"By analyzing your income and regular spending habits, Digit estimates how much it can safely take out of your account and places it into a non-interest-bearing savings account."

This seems a bit creepy. So rather than deducting a fixed amount, some algorithm figures out how much to take?

Plus, the whole no interest thing kills this dead.

I would think a better, but more static, way of doing this would be to split your direct deposit paycheck into two accounts. Use the main one for day-to-day expenses and the other for savings. This doesn't have the variable savings per month thing (which still seems dodgy but could be good), but does get you interest. If you put the savings account at a brokerage firm, you could invest the money and make a lot more return than the tiny amount that banks give you.

[toxicavenger]

^^^It sounds super creepy the way they work and a great scheme. On top of that they see fit what to do with your money. I bunch of top name companies are backing them also.

I hope they have great security, if not they are going to get robbed virtually.

[foodle]

bunch of top name companies are backing them also.

They seem to have some users already, and at least the back end of the business is basically a sure profit. If they can get people to sign-up, then they will have a reasonable amount of working capital to invest. With the way the markets have been going, you're sure to make at least 5-10% with some no brainer investments.

[toxicavenger]

bunch of top name companies are backing them also.

They seem to have some users already, and at least the back end of the business is basically a sure profit. If they can get people to sign-up, then they will have a reasonable amount of working capital to invest. With the way the markets have been going, you're sure to make 5-10% with some no brainer investments.

And they are giving current users $5 for every person they get to sign up. Sounds like some kind of govt ran b.s.