Digit vs. Acorns: Which Micro-Investing App is Right for You? [2024]

Both the Digit and Acorns apps provide multiple ways for you to save money and progress toward your financial goals. But each app is designed differently, so it’s important to compare their features and drawbacks when deciding which to choose.

In this Digit vs. Acorns comparison, you’ll learn about each app’s features and how they both could help you when it comes to your finances. You’ll also learn where they excel and where they differ. This information will help you decide which app would make the most sense for your lifestyle and financial goals.

In this article

• Digit vs. Acorns
• How does Digit work?
• How does Acorns work?
• What both savings apps excel at
• 4 important differences between Digit and Acorns
• Which savings app should you choose?
• FAQs
• Bottom line

Digit vs. Acorns

The best investment apps make it easy to manage your money from nearly any location. Both the Acorns and Digit apps are available on iOS and Android devices, so your finances are easily accessible. In addition, the services both apps provide can help pave the way to simpler money management without heaps of added stress.

The automated features on Digit and Acorns allow you to focus your attention on everyday living while saving you time and money. You’ll typically have to pay a monthly fee for either app, but it’s often a small price to pay when compared to the value you receive.

Both apps share similar features, but you’ll notice Digit tends to emphasize its saving benefits while Acorns focuses on investments. Use the table below to consider the similarities and differences between both apps.

Minimum investment No minimum balance required No minimum to open an account, but you must have money in your account to start using it Management fees $5 monthly subscription $1 to $3 per month if you’re under $1 million invested and free if you’re over; $5 per month for a family account Account types available Digit savings account, Digit investment account, Digit retirement account (Traditional IRA or Roth IRA) Acorns Invest investment account, Acorns Spend checking account, and Acorns Later retirement account (Traditional IRA, Roth IRA, or SEP IRA) Features Automatic savings for set goals within specific timeframes, multiple investment portfolio options, retirement contributions, savings bonus, and overdraft coverage Automatic investing with Round Ups, diversified portfolios, automatic retirement contributions, metal debit card, shopping offers, and investment accounts for your kids Distributions Traditional IRAs require withdrawals starting at age 72 or 70 1/2 if you were 70 1/2 before Jan. 1, 2020; Roth IRAs don’t require withdrawals until after the account holder has died Traditional IRAs require withdrawals starting at age 72 or 70 1/2 if you were 70 1/2 before Jan. 1, 2020; Roth IRAs don’t require withdrawals until after the account holder has died Taxes Qualified IRA contributions are tax-deductible Qualified IRA contributions are tax-deductible Best for... Automatic saving Automatic investing Visit Digit Visit Acorns

How does Digit work?

Digit is a savings and investing app that can automate some of your finances to help you achieve important goals. Whether it’s saving up for a down payment or contributing to an emergency fund, Digit could assist. In fact, you don’t even need to think about how you’ll save for your goals. Simply set a goal of how much money you want to save within a specified time frame and Digit will do the rest.

Once you’ve set up a linked checking account to your Digit account, Digit analyzes your finances, spending habits, and upcoming bills, and it determines how much money it can put into savings on a daily basis. If you have multiple savings goals, Digit will also determine how much to put toward each. You can transfer money back to your account from Digit whenever you want.

The money in your Digit savings account will generate a savings bonus every three months. The annual savings bonus is .10%, so when it’s paid out quarterly it amounts to .025%. For example, $5,000 over three months would net you a bonus of $1.25 ($5,000 x 0.00025 = $1.25). This beats the national APY on traditional savings accounts, which is .05% (as of Jan. 14, 2021).

If you’re interested in other options to potentially grow your wealth, you might also consider investment and retirement options from Digit. You can choose from multiple portfolio options for investing and multiple individual retirement account options for retirement contributions. Each investment portfolio is made up of exchange-traded funds based on your preferred risk tolerance—either conservative, moderate, or aggressive. Access to investment and retirement options are both included in the Digit monthly subscription.

If you need more information, read our Digit review.