Acorns is a personal finance app that allows users to invest their spare change into different assets. Digit is an app that tracks spending and helps users save money by automating savings goals. Which of these apps is best for your needs?
Acorns vs. Digit is a battle between two apps that are both designed to help people save money on their finances. Best money saving apps 2020 is the question that this article seeks to answer. Read more in detail here: best money saving apps 2020.
Let’s face it: saving money is difficult. Saving for retirement, an emergency fund, or a trip is now simpler than ever with the appropriate micro-savings and investment software. Finding the appropriate app for your requirements is crucial. Acorns and Digit are two applications that stand out in the realm of micro-investing and saving.
We prepared this Acorns vs. Digit comparison to help you determine which app is best for you. Next, we’ll evaluate the many features of each app so you can figure out how to best save your hard-earned cash.
Acorns vs. Digits: An Overview
Two fintech applications, Acorns and Digit, are intended to help you optimize your savings. To begin our evaluation, we’ll give you an overview of each app in this part.
Acorns, one of the first micro-investing applications, launched in 2012 with the goal of enabling anybody to become an investor. Acorns has grown into a complete personal finance platform that can help you save and invest in one location since then.
The firm manages over $1.2 billion in assets, and the majority of its clients are private investors with small account balances. As a result, it’s a popular option for those wanting to get their investments off to a good start. To discover more, read our complete Acorns review.
Digit is a fintech firm dedicated to making personal finance as simple as possible. The business automates your savings using its unique algorithms, allowing you to achieve any financial objective.
Despite the fact that Digit does not disclose its actual assets under management, it claims to have assisted account users in saving more than $5 billion. Digit has extended its services beyond savings accounts in recent years to include more micro-investing options. To understand more, read our Digit review in its entirety.
Acorns vs. Digit: Key Differences
Both Digit and Acorns are feature-rich savings applications, so here are some of the highlights you can anticipate when you sign up for one of their services.
Acorns is a subscription-based financial program that allows you to save, invest, and budget. Acorns breaks down its numerous features into five main categories to assist you in doing so.
Acorns Invest, a robo-advisor accessible to all account holders, is the company’s main product. Acorns Invest creates an investing portfolio of ETFs that are tailored to your financial objectives. Then, to help you create a nest egg over time, you may set up automatic payments to your investing account.
For Personal and Family customers, the company also provides the Acorns Later function. With Acorns Later, you may use the company’s robo-advisor service to set up a retirement account.
Acorns Early is especially worth considering if you have children. Acorns Early is a robo-advisor account for children that is accessible to Family customers. These accounts feature aggressive investment portfolios to assist you in saving for the futures of your children.
The Acorns Spend and Earn features, on the other hand, set Acorns unique. Both services are accessible to Personal and Family membership users, and they help you manage your money more efficiently.
You receive an FDIC-insured bank account and a Visa debit card with Acorns Spend. You may also utilize the Round-Ups function on your Acorns debit card to save and invest leftover change from your everyday transactions.
Acorns Earn, a cash-back rewards program, is available to Personal and Family customers. You can earn cash back on anything from airfares to pet food with Acorns Earn. As a result, it’s a great method to obtain free money into your investing portfolio.
Overview of the Main Features
- Acorns Invest — Acorns Invest is the company’s main feature, and it’s a simple robo-advisor that allows you invest as little as $5.
- Later acorns – Acorns Later is an automatic retirement savings solution that is ideal for long-term objectives.
- Acorns Early is an investment program for custodial accounts that is designed to assist you in saving for your children’s futures.
- Acorns Spend is an FDIC-insured bank account with a debit card that allows you to invest leftover change from everyday purchases.
- Earnings from Acorns – Acorns Earn is a rewards program that allows you to earn cash back on your everyday purchases, which you can then deposit into your investing account.
Acorns is the source of this information.
Digit, like Acorns, is a personal financial software that helps you save more money. The automatic savings function, which utilizes an algorithm to monitor your spending and income patterns, is the app’s main feature. When you can afford it, the app automatically transfers money from your checking account to your Digit savings account.
You can also use Digit’s goal-setting tools to help you focus your savings toward your financial objectives, such as a home or an emergency fund. When Digit decides that you can afford it, you may also utilize the debt payback function to prioritize paying credit card or student loan payments.
Digit also provides a “savings incentive” to encourage you to save consistently. If you save for three months in a row, you will get a bonus of 0.10 percent of your account balance, which will be immediately transferred into your account.
Finally, although Digit is mainly intended to assist you in saving, it also allows you to establish investment and retirement accounts. These accounts employ robo-advisors to invest your money in a variety of low-cost exchange-traded funds (ETFs).
You may also tell the app how you want to distribute your money across your investment and savings accounts using Digit’s goal-setting capabilities. For example, you might state that you want to put 50% of your money into savings, 25% into general investment, and 25% into retirement so that you can easily accomplish all of your financial objectives.
Overview of the Main Features
- Automated Savings — When you can afford it, Digit’s automated savings function utilizes algorithms to automatically save money for you.
- Goal Setting — On the Digit app, account users may create savings and investment objectives to help prioritize different financial goals.
- Debt Payback Assistance – The company’s loan payoff service allows you to make payments on your student loans and credit cards whenever you are able.
- Savings Bonuses – If you save for three months in a row, Digit will give you a 0.10 percent bonus on your account balance.
- Investing & Retirement — You may create a taxable or retirement investing robo-advisor account directly in the Digit app for no extra cost.
Investment Options: Acorns vs. Digit
If you wish to begin investing, you must first learn about the various investment choices accessible on each site. So, here’s a brief rundown of the various kinds of assets available via Digit and Acorns.
The option to invest in an ETF portfolio is available to all Acorns account members. Based on your risk tolerance and specified investment timeframe, the company will invest your money in a managed portfolio of low-cost ETFs.
You may select from a variety of portfolio allocation types with Acorns, including conservative, moderate, and aggressive portfolios. Each portfolio invests a portion of your money in a small number of ETFs that hold bonds or equities.
Digit account users, like Acorns account holders, may invest in ETFs. Because Digit’s portfolios are managed by a robo-advisor, your funds will be assigned to one of many portfolios depending on your objectives, risk tolerance, and investment timeframe.
While you can’t pick and choose which ETFs you want to invest in with Digit, you can choose a portfolio that’s appropriate for you. Digit will suggest a portfolio type (for example, conservative or aggressive), but you may choose another if you want.
Digit is the source.
Account Types: Acorns vs. Digit
You must choose your desired account type when opening an account with Acorns or Digit. Some account types are included with all Digit and Acorns memberships, while others are only available to certain customers. Here’s what you should be aware of:
Individual taxable accounts for general investment are available to all Acorns subscribers. Subscribers to Personal and Family may also establish FDIC-insured checking accounts as well as one of the following retirement accounts:
- Traditional Individual Retirement Accounts (IRAs)
- Roth IRA
- SEP IRA
Finally, Acorns customers may set up a custodial account (UTMA/UGMA). These accounts allow you to put money down for your child’s future.
All Digit account users get an FDIC-insured savings account, which they may use to begin automating their savings.
All account holders may establish an individual taxable brokerage account in addition to this savings account. If you wish to save for retirement, all Digit subscriptions include traditional and Roth IRAs.
If you’re going to establish a new savings or investment account, you may as well be paid for it. When you create an account with Digit or Acorns, you may expect to get the following bonuses:
When you join up for a new account with Acorns, you will get a $10 incentive. This money will be put into your investing account immediately.
A free 30-day trial of the app is available to all new Digit account users. Despite the fact that Digit does not presently provide a cash incentive, the 30-day free trial will save you $5 on your membership costs.
Fees & Pricing for Acorns vs. Digit
Because both Acorns and Digit are subscription-based services, it’s critical to understand their price structures before signing up. Here’s all you need to know about it.
Acorns presently has a three-tiered pricing system in place. The following are the many choices available to you:
- Acorns Lite — Acorns Lite is the company’s low-cost alternative, costing $1 per month and giving you access to a taxable individual brokerage account.
- Acorns Personal — For $3 a month, members get all of the benefits of Acorns Lite, as well as a retirement account, a checking account, and a Visa debit card.
- Acorns Family – Acorns Family costs $5 per month and includes all of Acorns Personal’s features. It also gives you access to your children’s custody accounts.
Keep in mind that these rates apply to to accounts with balances of less than $1 million. Acorns may levy extra commission fees on accounts with balances above $1 million.
Acorns is the source of this information.
The price structure of Digit is deceptively straightforward. Only one membership option is available, which costs $5 per month and gives you access to all of the company’s savings and investment options. Aside from that, there are no additional ongoing charges with a Digit account.
What We Like About Acorns vs. Digit (Pros)
Because of their abundance of features, Digit and Acorns are popular financial applications. The following are some of the most significant advantages of investing with either company:
- Provides a subscription at a reasonable price.
- With every transaction, it’s simple to conserve your extra change.
- Access to a bank account as well as a Visa debit card
- Investing with a robo-advisor is included in all accounts.
- Bonuses and cash-back features are included.
- Educational materials and tools are available.
- There are options for retirement and custodial investment.
- Mobile app and web-based platform that is easy to use
- Advanced algorithms are used to assist you in saving money.
- There are no minimum account balance requirements.
- It has a function that allows you to pay off your debt.
- Allows you to establish financial objectives to guide your savings.
- Access to retirement and taxable investment accounts is available.
- A savings incentive is available for certain accounts.
- Fee structure that is simple and does not include any hidden recurring charges
- Web-based platform and mobile app that are simple to use
What We Don’t Like About Acorns vs. Digit (Cons)
Although both Acorns and Digit provide many advantages to its investors, certain aspects of either software left us wanting. Here are some of the major disadvantages of each firm to consider:
- There isn’t a way to sign up for a free account.
- Has a pricing structure that is more complex.
- Doesn’t automate your savings behavior using algorithms
- Acorns Spend does not include a bank account that pays interest.
- There isn’t a free account available.
- For all account users, there is just one subscription cost choice.
- Customer service is limited.
- There is no provision for a bank account or a debit card.
- There are no custody accounts available.
Digit is the source.
Acorns vs. Digit: Which Is More Secure?
If you’re going to start investing or saving using an app, be sure it’ll keep your money safe. When you create an account with either company, you’ll receive the following security features:
To keep your money safe, all Acorns accounts are secured by the company’s 256-bit encryption technology and other security measures including two-factor authentication.
Acorns accounts are also insured by the FDIC (for checking accounts) up to $250,000 and the SIPC (for investments) up to $500,000 in securities in the event of a banking or broker failure.
To prevent malicious actors out of your money, Digit’s accounts are encrypted with 256-bit encryption. The company also employs technologies like as Plaid to provide a secure relationship between Digit and your connected external accounts.
Furthermore, the FDIC insures Digit’s savings accounts up to $250,000. If the brokerage fails, the investments kept with the firm are SIPC covered up to $500,000 in securities.
Customer Support: Acorns vs. Digit
When utilizing money-saving applications, you may need to contact customer service on occasion. Because each company’s customer support offerings vary, here’s what you should expect:
You can find solutions to frequent questions at Acorns’ online help center. You may also utilize the company’s online chat function or send an email to their customer care department. Acorns also offers a customer service phone line that is open throughout business hours.
Digit, like Acorns, offers an online support center that addresses the majority of issues. Aside from that, the company’s customer service is restricted, since you can only contact them through email via the website or app.
Platform and App Comparison: Acorns vs. Digit
Both Acorns and Digit offer user-friendly interfaces where users may manage their accounts like money-saving applications. What you need to know about each company’s platforms and applications is as follows:
The majority of Acorns customers use the company’s mobile applications to access their accounts. Acorns has an app for iOS and Android that gives you access to all of the company’s services. Subscribers may also use the company’s web-based platform to do most account management activities.
Digit is a mobile-first platform, like many other savings applications. The company’s simple iOS and Android applications are used by the majority of Digit customers to access their accounts on their mobile devices. Digit also offers a limited web-based interface, although accounts are easiest to access via a mobile device, much as Acorns.
For Whom Are Acorns Intended?
Acorns is a popular micro-investment software that is ideal for individuals who want to get into investing but don’t have a lot of money.
The firm’s managed portfolios appeal to a variety of investment styles, and its numerous account types are beneficial to individuals with a variety of financial objectives. Furthermore, Acorns’ checking account capabilities make it an excellent option for anybody who wants to conduct their banking and investing with the same business.
However, although Acorns is appealing to those who want a hands-off approach to investing, it is not suitable for self-directed investors. Despite this, it’s a good option for novice investors who need some assistance getting started.
For Whom Is Digit Intended?
Digit is a good tool for individuals who have a lot of financial objectives yet struggle to save money on a regular basis.
Because the company’s unique algorithms make it simple to set your money on autopilot while also maximizing your savings, it’s a good option for anybody who needs a little more help getting to their objectives.
The firm’s restricted investment features, on the other hand, make it unsuitable for anyone looking to invest significant sums of money. However, Digit is worth considering if you want to take a comprehensive approach to your own money.
A personal finance software like Acorns or Digit may be exactly what you need if you want to start investing or saving.
Digit is a great option for those who want to put their savings on autopilot but only want to invest a little amount of money. If you want to automate your investing, though, Acorns is the way to go.
Regardless of whatever choice you pick, we hope that our Acorns vs. Digit comparison has helped you in determining which app is best for you.
In the digit vs acorns reddit there are many different opinions. Some people believe that Acorns is better, while others believe that Digit is better.
Frequently Asked Questions
Is acorns or Digit better?
Acorns is better because it has a higher win rate.
Is digit a good savings app?
Yes, it is a good app.
Which is better acorns or cash App?
Acorns are better than cash because they have a higher return on investment.
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