This App Saves Your Money Without Telling You, And Banks Are Backing It Up

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10:00 am 1 Mar, 2015

As technology takes over our lives, people (especially Americans) often find it difficult to go to a bank and run through the hassles of managing their savings.

Here is where 29-year-old Ethan Bloch’s personal finance app Digit comes into the picture.

It has already received seed-funding of $2.5 million from Google Ventures and Baseline Ventures late last year. Why, you ask.

Digit automatically saves money from your account without you doing the math.

Anywhere from $5-50 every 2-3 days.

You only need to connect your checking account (US terminology for current account) to Digit.

The app will go through all your transactions, monitor your income and expenditures, and arrive at an exact amount that can be saved.

The savings go into Digit custodial account with its banking partners Wells Fargo and BofI Federal Bank.

The money is FDIC-insured for upto $250,000.

Digit, however, doesn’t pays any interest to the users but they are exploring possibilities of doing the same in the future.

You can withdraw your savings anytime and as many number of times.

In its first five months of testing, Digit saved a total of $600,000 for its members.

Digit uses 256-bit bank-level security, doesn’t store bank login details, encrypts and securely stores user’s details.

Most importantly, Digit is a free service.

But it may not always be.

If all things go as planned by Bloch, Digit will one day arrive in India.

You can know more about Bloch here. To get a detailed understanding of Digit and the financial nitty-gritties involved, you may read this article by financial expert Jim Marous.

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