Qapital vs Digit; Which One Should You Choose?

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Since last summer I've been recommending two different “savings apps” to Financial Best Life readers – Digit and Qapital. I like and use them both, but now that both are on a subscription model and wanted to update my readers ASAP. I take my affiliate relationships very seriously, and you guys LOVE these app recommendations (also here) and I would never want you to feel like you're getting “duped.” Digit and Qapital work in much the same way; they are apps that analyze your spending habits to squirrel away micro amounts of cash you won't even miss in order to help you save better, but there are some substantial differences, so here's how Qapital vs. Digit breaks down.

 

More About Digit

 

 

What is the app digit?

Digit is an automatic savings app that connects with your primary checking account. When you spend, Digit sneaks away money into a separate savings account so you can save money without “feeling it.” If you're skeptical, let me say that they do work. I used automated savings apps like Digit to save over $1,000 in under 45 days. 

 

Does Digit charge a monthly fee?

Yes. Previously, Digit was free for users. Now after a 100 day trial period, users will have to pay $2.99 per month to continue using the services. If the average user saves between $80-$170 per month with Digit (the most I've saved is close to $70 dollars), then $2.99 per month equals about 3% of what you save. This is pretty steep for a money management service, and also a huge bummer when you're used to getting something for free.

Read the full Forbes article about the switch. Their reasoning is noble, and I get it. 

There aren't any fees to transfer your money in and out, and you can do this at any time. 

 

Is Digit safe?

 

Yes, Digit is very secure and comes with the standard 256-bit encryption most e-commerce and financial platforms use to secure sensitive data like checking/credit account numbers. You've also got the option of adding a layer security by enabling a password via your iOs system. 

 

Where Digit beats Qapital

 

Digit has more features that make it feels like an app for your total financial picture, such as texting you your checking account balance each morning and letting you know of any big transactions on your account.

Compared to Qapital, I also felt Digit did a better job of sneaking away little pockets of money I truly didn't miss.

 

Is Digit worth it?

Many micro-savings apps are now charging for services that many are using with much success. To me, I think it depends on how good or bad you are at saving. If you have trouble consistently saving, these services can really help you put aside a significant stash of money over time. But if you're a strong saver, 3% is pretty steep.

Even though Digit gives out a 1% savings bonus to users, Peter from Listen Money Matters found you'd need to keep a daily checking average of $3600 in your Digit account each month to offset the annual cost of their service. 

I know many freelancers and entrepreneurs especially like this service (and don't mind paying for it) because it helps them remember to set aside cash for quarterly tax payments. 

 

Qapital

 

 

What is Qapital?

 

Qapital is similar to Digit – it's an automated savings (or “micro savings” app) like Digit. But Qapital doesn't text you updates about your checking account, and instead, you can set rules based on your spending habits

Some examples of ways I've used Qapital include:

  • You can set up rules for when Qapital is allowed to take money out of your account or you can let them sneak little bits out over time.
  • Some of the rules I had set up – The 52 week rule (where they take out $1 per week on week 1, $2 on week 2 etc.) and the round up rule where every one of my purchases gets rounded up to the nearest dollar.
  • The “guilty pleasure” rule where you have to “pay yourself” a certain amount if you indulge in takeout (or whatever your poison is – eating out is mine for sure!)
  • Monthly, one time saving contributions for short term financial goals. When I was single and actively saving for travel, I'd put away over $100 using Qapital each month, which I'd let sit in there until my next trip when I'd use it as spending money for my travels.  
  • Qapital came in handy on recent trip to Miami, which was way more expensive than I'd budgeted for and so I was able to dip into my Qapital “travel fund” and cover those expenses in cash.

 

How can I use Qapital to quickly build savings?

  • Download the app and set a savings goal: let's imagine a backpacking trip through Europe, or downpayment on a first home.

  • Create rules that trigger automatic transfers, such as charging yourself for guilty pleasures, taking the 52 week challenge with a Qapital twist, or rounding-up to the nearest dollar on all of your debit transactions. For example:

    • Order takeout: $5 toward trip to Spain (guilty pleasure rule)

    • Morning coffee run: $0.50 toward new GoPro (debit card rounds to nearest dollar) Etc. 

 

What bank is Qapital?

Qapital isn't a bank, but the separate savings account they open on your behalf to hold your money is at Wells Fargo. They don't charge any fees for withdrawing your money and you can do so at any time. 

 

Is Qapital FDIC insured?

Since Qapital is not a bank, they can't get insurance, but since accounts are held at Wells Fargo, you receive the same FDIC coverage as any other Wells Fargo account holder. 

 

Do you have to pay to use Qapital?

 
Yes. Qapital has since updated their pricing structure and is no longer a free automatic savings app. Qapital is still my preferred app for saving money, but they now have a tiered membership structure between $3-12 dollars per month for the service depending on the tier you choose. This does make the app more expensive than Digit

 

How Qapital beats Digit

 

I won't lie. Even though Qapital is the more expensive option, it's really fun to use. 

Qapital is also the first banking service to fully integrate IFTTT (If This Then That) technology, allowing users to save money just by using their favorite apps. For example: Use #DreamHome on Instagram: $20 toward down payment on house, reach 10,000 steps on Fitbit: $10 toward yoga retreat. By enabling the app to trigger savings on normal activities you not only save more, but enjoy using it. 

And I like the idea of people enjoying saving money rather than doing it because they feel they have to. 

Even though I write about finance, I still struggle with saving, particularly on a solopreneur's irregular income, so apps like Qapital help make it easy for me to sneak away savings so I can indulge in what I love guilt free.

 

 

 

 

  1. Reply

    thanks for this! i had it on my phone for years and had a mini heart attack when i found out that they charge a monthly service lol

    • KRISTAL JOY PAYNE
    • March 1, 2019
    Reply

    For users who have previously had it. They get the highest tier for free still.

    • Heather Johnson
    • February 22, 2019
    Reply

    Hey, I don’t know when this post was written, but Qapital isn’t free. It may have been in the past but it isn’t now. They have plans for $3, $6, or $12/month, each with different features.

    1. Reply

      It is an older post. Thanks for letting me know, I’ll be sure to update!

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